IIA IIA-IAP Practice Exams
Last updated on Oct 21,2026- Exam Code: IIA-IAP
- Exam Name: Internal Audit Practitioner
- Certification Provider: IIA
- Latest update: Oct 21,2026
What are the typical elements of a risk and control matrix used in the engagement planning process?
- A . Experience level of key management personnel, susceptibility of the process to fraud, and process automation.
- B . Inherent process risks, as defined in a globally accepted risk and control framework.
- C . Business objectives, risks to the objectives, and impact and likelihood of the risk occurring.
According to the IIA’s Code of Ethics, which of the following best describes the conduct of an internal auditor who demonstrates the principle of competency?
- A . The auditor continually improves her proficiency and the effectiveness and quality of her services
- B . The auditor is prudent in the use and protection of information acquired in the course of her work
- C . The auditor does not accept anything that may impair or be presumed to impair her professional judgment
Which of the following is the most important initial action for a chief audit executive to perform when establishing a new internal audit activity?
- A . Establish an internal audit charter.
- B . Establish a code of ethics for the internal audit activity.
- C . Approve the internal audit budget.
An internal auditor is reporting on the organization’s asset management system.
Which of the following would likely add the greatest value to the organization?
- A . Confirmation that controls are operating efficiently.
- B . Recommendations aimed at reducing risk exposure.
- C . Reports that state identified deficiencies were remedied during the audit.
Which of the following internal auditor attributes benefits the most from continuous professional development?
- A . Integrity.
- B . Objectivity.
- C . Competency.
During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization’s total budget.
Which of the following best supports the auditor’s recommendation to reduce the level of reviews?
- A . The inherent risk of travel expense fraud is low.
- B . The cost of the control outweighs the benefit.
- C . The duplication of effort in the review process is unnecessary.
Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?
- A . Expertise in detecting and investigating fraud.
- B . Sufficient knowledge to evaluate the risk of fraud.
- C . Specialized skills for developing and implementing controls to prevent fraud.
Which of the following statements is true with regard to the adequacy of a control design?
- A . Regardless of the adequacy of control design, it is important to evaluate the operating effectiveness of all key controls to justify the integrity of the internal audit process.
- B . Even if a control is effective, it may not achieve the control objective due to an inadequate design.
- C . Control designs are considered adequate as long as secondary controls will effectively mitigate the risk.
A senior internal auditor is using a risk and control matrix to facilitate an internal control assessment of the fixed asset accounting process.
Which of the following activities would aid the auditor in determining inputs for the risk and control matrix?
- A . Reviewing the results of control effectiveness testing of the fixed asset capitalization subprocess.
- B . Interviews with fixed asset management, control process walkthroughs, and internal control questionnaires.
- C . Management’s cost-benefit analysis of internal control alternatives considered in the design of the fixed asset accounting process.
Which of the following describes an internal auditor’s use of external benchmarking?
- A . The auditor calculates the net profit margin for a business segment to analyze the profitability.
- B . The auditor compares return on equity for a beverage company against its competitor to analyze profitability.
- C . The auditor evaluates operating income margin between geographical areas within an organization to analyze its profitability.