IIA IIA-IAP Exam Questions 2025 in PDF Format

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IIA Internal Audit Practitioner Sample Questions (Q60-Q65):

NEW QUESTION # 60
Which of the following best describes an audit engagement in which the objective is to appraise the economy of an oil shale mining process and the degree to which yearly production targets are being achieved?

A. Operational
B. Due diligence
C. Business process improvement

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Operational Audit: This type of audit focuses on evaluating the efficiency, effectiveness, and economy of operations, such as the mining process and production targets in this case.

NEW QUESTION # 61
Based on the three elements of the Fraud Triangle, which of the following might be considered a fraud indicator related to the opportunity element?

A. Poor segregation of duties allows for an executive assistant to authorize payments to one-time vendors without supervisory approvals
B. Executive management establishes financial performance objectives for business unit managers. The objectives include significant increases in annual sales and market penetration
C. Reserves were established based on conservative assumptions to maximize the amounts set aside for when operating results may not meet investors' expectations

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Opportunity Element: This element of the Fraud Triangle refers to situations where weaknesses in controls provide the ability for someone to commit fraud without being detected. Poor segregation of duties, as described in Option C, creates such opportunities.
* Example: Allowing an executive assistant to authorize payments without oversight significantly increases the risk of fraud.

NEW QUESTION # 62
According to IIA guidance, which one of the following hiring strategies is most appropriate to fill internal audit positions?

A. Hire the required number of internal auditors to accomplish the audit plan
B. Recruit candidates to fulfill the skills requirement of the internal audit activity
C. Assess each candidate's competency for an upcoming audit

Answer: B

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Skills-Based Recruitment: Internal audit activities require diverse skills to handle complex audits.
Recruiting candidates based on the skills needed ensures the internal audit activity can fulfill its mandate effectively.

NEW QUESTION # 63
Which of the following statements is true regarding root cause analysis?

A. Root cause analysis enables internal auditors to reveal multiple causes and recommend control enhancements for each cause identified.
B. Root cause analysis enables internal auditors to improve the effectiveness and efficiency of the organization's governance, risk management, and control processes.
C. Root cause analysis is a simple, straightforward tool that can be implemented by internal auditors who may not possess relevant subject matter expertise.

Answer: A

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Root Cause Analysis: This method identifies underlying causes of issues rather than just addressing symptoms, allowing internal auditors to recommend targeted improvements to controls and processes.
By identifying multiple causes, auditors can propose tailored control enhancements to address each cause effectively.

NEW QUESTION # 64
Which of the following analytical procedures would be most effective for an internal auditor to examine changes in performance over time?

A. Analysis of common size financial statements
B. Ratio analysis
C. Trend analysis

Answer: C

Explanation:
Comprehensive and Detailed Step-by-Step Explanation:
* Trend Analysis: This technique identifies patterns or shifts in performance by analyzing data over time. It is particularly effective for tracking metrics like revenue, expenses, or production volumes across reporting periods to spot anomalies or trends.

NEW QUESTION # 65
......

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IIA IIA-IAP Exam Questions 2025 in PDF Format

Real IIA-IAP Testing Environment Updated Questions Pool Only at SureTorrent

IIA Internal Audit Practitioner Sample Questions (Q60-Q65):

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