Qualified Internal Auditor (QIA) Free Practice Test

Question 1

An internal auditor would trace copies of sales invoices to shipping documents in order to determine that:

A. Sales that are billed were also shipped.

B. Customer shipments were billed.

C. Shipments to customers were also recorded as receivables.

D. The subsidiary accounts receivable ledger was updated.

Correct Answer: A

Question 2

In order for internal auditors to be able torecognizepotential fraud, they must be aware of the basic characteristics of fraud. Which of the following is not a characteristic of fraud?

A. Intentional deception.

B. Taking unfair or dishonest advantage.

C. Perpetration for the benefit or detriment of theorganization.

D. Negligence on the part of executive management.

Correct Answer: D

Question 3

Audits vary in their degree of objectivity. Of the following, which is likely to be the most objective?

A. Operational audit of the personnel function hiring and firing procedures.

B. Compliance audit of company's overtime policy.

C. Financial control audit over payroll procedures.

D. Performance audit of the marketing department.

Correct Answer: B

Question 4

An internal auditor plans to use an analytical review to verify the correctness of various operating expenses in a division.
The use of an analytical review as a verification technique would not be a preferred approach if

A. The operating expenses vary in relation to other operating expenses, but not in relation to revenue.

B. The auditor would like to identify large, unusual, or nonrecurring transactions during the year.

C. The auditor notes strong indicators of a specific fraud involving this account.

D. The company has relatively stable operations that have not changed much over the past year.

Correct Answer: C

Question 5

Viba, who is audit senior on the in progress audit of Weave plc, has recently placed her CV with a recruitment agent. She has had no feedback from the agent, with whom she has a meeting on Friday. The agency is currently carrying an advert for financial controller at Weave plc, but the advert does not give the company's name.
This represents:

A. A self-interest threat

B. An intimidation threat

C. No threat

D. A management threat

Correct Answer: C

Question 6

When making a presentation to management, the auditor wants to report findings and to stimulate action.
These objectives are best accomplished by

A. Showing a series of slides or overheads that graphically depict the findings; limit verbal commentary.

B. Using slides/overheads to support a discussion of major points.

C. Handing out copies of the report, asking the participants to read the report, and asking for questions.

D. Delivering a lecture on the findings.

Correct Answer: B

Question 7

Which of the following techniques is best foremphasizinga point in a written communication?

A. Highlight the point through the use of nonparallel structure.

B. Use a short sentence with one idea rather than a longer sentence with several ideas.

C. Place the point in the middle rather than at the beginning or end of the paragraph.

D. Use passive rather than active voice.

Correct Answer: B

Question 8

The auditor wants to understand the actual flow of data regarding cash processing. The most convincing evidence would be obtained by

A. Reviewing the programming flowchart for evidence of control procedures placed into the computer programs.

B. Interviewing the treasurer.

C. Performing a "walk-through" of the processing and obtaining copies of all documents used.

D. Reviewing the systems flowchart.

Correct Answer: C

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IQN Qualified Internal Auditor (QIA) Free Practice Test