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Last Updated: Aug 02, 2026
No. of Questions: 100 Questions & Answers with Testing Engine
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| Section | Objectives |
|---|---|
| Topic 1: Governance, Risk, and Control | - Governance principles - Internal control frameworks - Risk management concepts |
| Topic 2: Audit Tools and Techniques | - Sampling methods - Data analysis techniques |
| Topic 3: Internal Audit Process | - Fieldwork and evidence collection - Follow-up and monitoring - Audit planning and scoping - Reporting and communication |
| Topic 4: Foundations of Internal Auditing | - Internal audit definition and purpose - Ethics and professional standards |
1. During an assurance engagement of an organization's procurement process, an internal auditor obtained the policy that specified the authorized dollar limits for invoices. This document would best support which of the following attributes of an audit report?
A) Criteria
B) Condition
C) Effect
2. During an accounts payable audit engagement, the internal auditor found that vendor invoices are always paid
30 days after the invoice date, regardless of the vendor's payment terms. The auditor also discovered that accounts payable employees are not comparing vendor invoices received to previous vendor invoices prior to payment. Based on the auditor's observations, what are the potential risks?
A) Poor cash management due to potentially lost payment discounts
B) Poor cash management due to potentially paying fraudulent invoices
C) Poor cash management due to potentially paying the wrong vendors
3. Which of the following describes how the internal audit activity can add the greatest value by assisting management with internal controls?
A) Internal auditors should monitor how internal controls are functioning.
B) Internal auditors should evaluate the effectiveness and efficiency of internal controls.
C) Internal auditors should assist in designing strong controls.
4. A newly hired internal auditor has been asked to examine the sales of a specific product over the last four years. Which of the following analytical review techniques should the auditor employ?
A) Ratio analysis.
B) External benchmarking.
C) Trend analysis.
5. Which of the following elements are typically included in an engagement work program?
A) Fieldwork, analytical testing, and resources
B) Opinions and final engagement communications
C) Planning, objectives, and preliminary risk assessments
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
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