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QIA IQN Qualified Internal Auditor Free Practice Exam Questions (2025 Updated)

Prepare effectively for your IQN QIA Qualified Internal Auditor certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 80 questions

Which of the following audit committee activities would be of the greatest benefit to the internal auditing department?

A.

Review and approval of auditprograms.

B.

Assurance that the external auditor will rely on the work of the internal auditing department whenever possible.

C.

Review and endorsement of all internal audit reports prior to their release.

D.

Support for appropriate follow-up of recommendations made by the internal auditing department.

Working papers serve the following purpose for the internal auditor:

A.

Provide the auditee a place to make responses to audit recommendations.

B.

Make the audit report more readable by providing a place to append exhibits.

C.

Provide the principal evidential support for the internal auditor's report.

D.

Provide a place to summarise overall audit recommendations.

Data gathered in support of an audit conclusion can be rated on a continuum of reliability.

The most reliable form of evidence would be an

A.

Internal document obtained from the auditee.

B.

External document obtained directly from an outside source.

C.

Internal document subject to rigorous internal review procedures.

D.

Internal document that has been circulated through an outside party.

In planning a system of internal operating controls, the role of the internal auditor is to

A.

Design the controls.

B.

Appraise the effectiveness of the controls.

C.

Establish the policies for controls.

D.

Create the procedures for the planning process.

An organization uses a service bureau to process its hourly payroll transactions. The internal auditor is concerned that the hourly payroll for the year has been processed correctly and, in particular, the computation of employee withholding for pension contributions is in accordance with the union contract, which specifies charges each quarter.

Which of the following audit procedures would best accomplish the audit objective?

A.

Select a random sample of all hourly payroll transactions for the reporting period, re-compute pay and withholding items, and compare the result with that obtained from the service bureau.

B.

Select a stratified sample of all hourly and salaried payroll transactions for an entire reporting period, perform the necessary activities, and then compare the result with that obtained from the service bureau.

C.

Select a discovery sampling of all payroll transactions for an entire reporting period and then follow up on any findings.

D.

Submit a set of test data to the service bureau during an annual audit and compare the service bureau's processing with the auditor's predetermined computations on the same test data.

Which of the following is a particular activity of internal audit function?

A.

Special investigations, for instance, into suspected fraud

B.

Confirm that the final result (the sum) is correct

C.

To evaluate the system of internal control that are mainly concerned with the financial statements and accounting

D.

To give an opinion on overall fairness of the financial statements and accounting

An audit of accounts payable was made to determine if the error rate was within the stated policy of 0.5%. One hundred of the 10,000 accounts payable transactions were randomly selected using a 95% confidence level. No errors were found.

With 95% certainty, one can conclude that the sample results

A.

Indicate another sample is needed.

B.

Prove there are no errors in accounts payable.

C.

Indicate the null hypothesis is false.

D.

Fail to prove the error rate is above 0.5%.

Which of the following is an example of an efficiency measure?

A.

The rate of absenteeism.

B.

The goal of becoming a leading manufacturer.

C.

The number of insurance claims processed per day.

D.

The rate of customer complaints.

An audit team developed a preliminary questionnaire with the following response choices:

I. Probably not a problem.

II. Possibly a problem.

III. Probably a problem.

The questionnaire illustrates the use of

A.

Trend analysis.

B.

Ratio analysis.

C.

Unobtrusive measures or observations.

D.

Rating scales.

Accounts payable schedule verification may include the use of analytical evidence.

Which of the following is most appropriately described as analytical evidence?

A.

Comparing the items on the schedule with the accounts payable ledger or unpaid voucher file.

B.

Comparing the balance on the schedule with the balances of prior years.

C.

Comparing confirmations received from selected creditors with the accounts payable ledger.

D.

Examining vendors' invoices in support of selected items on the schedule.

Which of the following statements conveys negative information in such a way that a favorable response from the auditee may still be achieved?

A.

Your bookkeeper has failed to reconcile the bank statement each month.

B.

The bank statements have not been reconciled each month.

C.

Unfortunately, your bookkeeper has not taken the time to reconcile the bank statement each month.

D.

You have apparently failed to inform your book keeper that the bank statements should be reconciled on a timely basis.

Which technique is most appropriate for testing the quality of the pre-audit of payment vouchers described in an internal control questionnaire (ICQ)?

A.

Analysis

B.

Evaluation

C.

Verification

D.

Observation

How does CSA differ from traditional methods of auditing?

A.

Shifts some of the responsibilities away from the auditors towards others such as work teams.

B.

Allocated additional responsibilities to internal audit.

C.

Reduces the level of collaboration required between managers and internal auditor.

D.

Allows assessment to be carried out without any internal audit involvement whatsoever, therefore allowing them to focus their attention on other areas of theorganization.

In a variables sampling application, which of the following factors will vary directly with a change in confidence level from 90% to 95%?

A.

Standard error of the mean.

B.

Non-sampling error.

C.

Achieved precision.

D.

Point estimate of the arithmetic mean.

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

B.

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

C.

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

D.

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

Which of the following is not an argument for principles-based approach to corporate governance?

A.

The same rules might not be suitable for every company

B.

There are some aspects of corporate governance that cannot be regulated easily

C.

Companies do not have the choice of ignoring the rules

D.

The most suitable corporate governance practices can differ between companies

The purchasing manager of a manufacturing company was concerned with the rising prices of some direct materials provided by a supplier. The purchasing manager told the supplier to either maintain the current prices or withdraw as a supplier for the company's direct materials. The supplier devised a plan to circumvent the purchasing manager's intent without actually violating the purchasing manager's mandate.

Which one of the following is the probable action taken by the supplier?

A.

The supplier maintained prices in the short run but later returned to a pattern of increasing prices.

B.

The supplier decided to stop providing the direct materials to the manufacturing company, since holding the line on prices would have a negative impact.

C.

The supplier maintained prices but substituted a lower grade of direct materials.

D.

The supplier worked through the president of the manufacturing company to force the purchasing manager to cancel the mandate.

Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise red flags and arouse auditors' professional scepticism concerning possible fraud.

Which of the following is most likely to be considered an indication of possible fraud?

A.

A new management team installed as the result of a takeover.

B.

Rapid turnover of financial executives.

C.

Rapid expansion into new markets.

D.

An Internal Revenue Service audit of tax returns.

The appropriate sampling plan to use to identify at least one irregularity, assuming some number of such irregularities exist in a population, and then to discontinue sampling when one irregularity is observed is

A.

Stop-and-go sampling.

B.

Discovery sampling.

C.

Variables sampling.

D.

Attributes sampling.

During an audit, the internal auditor should consider the following factor(s) in determining the extent to which analytical procedures should be used, Except

A.

Adequacy of the system of internal control.

B.

Significance of the area being examined.

C.

Precision with which the results of analytical audit procedures can be predicted.

D.

Preparation of employee questionnaire policy.

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Total 80 questions
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