Examination Practice Questions And

Illinois Internal Auditor Certification Examination Practice Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• Which of the following best describes the primary purpose of internal

auditing?

• Detect fraud within the organization
• Provide independent assurance on risk management, control, and

governance

• Enforce corporate policies
• Prepare financial statements

Answer: B

Rationale: Internal auditing’s core mission is to provide independent, 1 / 4

objective assurance and advisory services that improve risk management, control, and governance processes.

2. Independence of the internal audit activity is achieved through:

• Reporting to the CFO
• Reporting to department managers
• Having no administrative oversight
• Reporting functionally to the audit committee

Rationale: Functional reporting to the audit committee ensures

organizational independence and avoids management influence.

3. The chief audit executive (CAE) is primarily responsible for:

• Approving company strategy
• Daily accounting entries
• Developing a risk-based internal audit plan
• Hiring external auditors

Rationale: A CAE creates and maintains a risk-based audit plan consistent

with internal audit’s priorities.

• A key element of professional skepticism is: 2 / 4

• Distrusting all employees
• Blind trust in management
• A questioning mindset and critical assessment of evidence
• Accepting management explanations without verification

Rationale: Professional skepticism means maintaining a questioning

attitude and carefully evaluating evidence.

• Which internal control component includes policies and procedures?
• Monitoring
• Control environment
• Risk assessment
• Control activities

Rationale: Control activities are the specific actions—policies, procedures,

and mechanisms—implemented to address risks.

6. The IIA Code of Ethics includes the principle of:

• Creativity
• Objectivity
• Compensation
• Tax compliance

Rationale: Integrity, Objectivity, Confidentiality, and Competency are the

four key ethical principles. 3 / 4

7. A walkthrough is primarily used to:

• Perform statistical sampling
• Test management override
• Understand processes and controls by tracing transactions
• Detect fraud schemes

Rationale: Walkthroughs help auditors gain process understanding by

tracing a transaction from start to finish.

8. Internal audit documentation should be:

• Destroyed after reporting
• Prepared only orally
• Sufficient, reliable, relevant, and useful
• Created only by management

Rationale: Documentation must be adequate to support conclusions and

audit results.

9. A risk register is used to:

• Publish corporate policies
• Track payroll transactions
• Record identified risks and related controls
• Replace audit planning
• / 4