FREE Certified Internal Auditor MCQ Questions and Answers

Question 1

When an auditor suspects that an unnamed employee is submitting and approving bills for payment, which of the following processes would be most useful in supplying additional proof?

Accepted Answer

Use generalist audit software to find vendor bills containing post office box numbers or other strange details. Choose a representative sample of those invoices and link them to any supporting documentation, such as receiving reports

Answer

This approach is most effective because it uses data analytics to identify red flags, such as post office box numbers, which can indicate shell companies or fictitious vendors. By then linking these suspicious invoices to supporting documentation like receiving reports, the auditor can verify if the services or goods were legitimately received and properly authorized, directly addressing the suspicion of fraudulent billing.

Question 2

Which of the following should an internal auditor look out for during an audit of the award of a significant contract?

Accepted Answer

Material contract requirements are different on the actual contract than on the request for

Answer

A significant discrepancy between the requirements stated in the Request for Proposal (RFP) and those in the final awarded contract is a major red flag. This could indicate favoritism, lack of transparency, or even fraud, as it suggests the contract terms were altered after the bidding process, potentially to benefit a specific vendor or circumvent fair competition.

Question 3

Which of the following categories of audit evidence best exemplifies the ability to establish a fact without relying on supporting assumptions?

Accepted Answer

Direct

Answer

Direct evidence establishes a fact without the need for inference or additional assumptions. For example, observing an inventory count directly proves the existence of inventory at that moment. In contrast, circumstantial evidence requires logical deduction to connect it to the fact in question, and corroborative evidence supports other evidence but doesn't stand alone as direct proof.

Question 4

A chief audit executive's main concern when reading a report written by an internal auditor who has a friend who works in the sector being audited would be to guarantee which of the following?

Accepted Answer

The report is fair, impartial, and unbiased

Answer

When an auditor has a personal relationship with someone in the audited sector, the primary concern is a potential threat to objectivity and independence. The chief audit executive must ensure that the auditor's report remains fair, impartial, and unbiased, free from any influence that the personal relationship might exert, to maintain the credibility and integrity of the audit findings.

Question 5

Which of the following claims about work paper reviews is accurate?

Accepted Answer

Workpapers should be initialed and dated by the reviewer as evidence of supervisory review

Answer

Initialing and dating workpapers by the reviewer is a standard auditing practice and a crucial element of quality control. It provides clear documentation that the work has been reviewed, indicating supervisory oversight and accountability. This step helps ensure that audit procedures were properly performed, conclusions are supported, and the audit meets professional standards.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

FREE Certified Internal Auditor MCQ Questions and Answers