IIA Internal Audit Practitioner : IAA-IAP

  • Exam Code: IAA-IAP
  • Exam Name: Internal Audit Practitioner
  • Updated: Jun 30, 2026
  • Q & A: 100 Questions and Answers

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IIA Internal Audit Practitioner Sample Questions:

1. During engagement planning, which of the following sources would provide the internal auditor with relevant information to obtain an understanding of the process under review?

A) Mission, strategic objectives, and key performance indicators of the process under review, based on documented plans, policies, procedures, and discussions with management
B) Final report from an external financial audit of the process under review, which includes the status of management's corrective action plans
C) The internal audit activity's annual audit plan and discussions that led to its development


2. Which of the following would have the most direct impact on management's decision regarding the amount of risk that is considered acceptable?

A) Risk perception.
B) Risk appetite.
C) Risk capacity.


3. Which of the following best describes the difference between inherent risk and residual risk?

A) Inherent risk is the level of risk the organization is willing to accept, residual risk is the level of risk deemed unacceptable by the organization.
B) Inherent risk is the level of risk before the risk assessment process, residual risk is the level of risk remaining after completing the risk assessment process.
C) Inherent risk is the level of risk in the absence of any targeted actions or controls to alter its severity, residual risk is the risk remaining after implementing corrective actions.


4. To be organizationally independent, the chief audit executive should administratively report to which of the following?

A) The board of directors.
B) The chief executive officer.
C) The audit committee.


5. Which of the following describes an internal auditor's use of external benchmarking?

A) The auditor compares return on equity for a beverage company against its competitor to analyze profitability.
B) The auditor evaluates operating income margin between geographical areas within an organization to analyze its profitability.
C) The auditor calculates the net profit margin for a business segment to analyze the profitability.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: B
Question # 5
Answer: A

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