NYC MANAGEMENT LATEST
AUDITOR TRAINEE
PRACTICE EXAMINATION
QUESTIONS AND
ANSWERS 2026 - 2027
1. What is the primary purpose of an internal audit?
A. To maximize company profits
B. To provide independent assurance that risk management, internal
controls, and governance processes are functioning effectively
C. To prepare tax returns
D. To supervise all employees
Correct Answer: B
Rationale: Internal auditing independently evaluates the effectiveness of
controls, risk management, and governance to help an organization
achieve its objectives.
2. Which document provides the strongest evidence that a payment was
authorized?
END OF
PAGE
1
, NYC MANAGEMENT LATEST
AUDITOR TRAINEE
PRACTICE EXAMINATION
QUESTIONS AND
ANSWERS 2026 - 2027
A. An unsigned invoice
B. An approved purchase order with the required authorization
C. A handwritten note from an employee
D. A verbal statement
Correct Answer: B
Rationale: An approved purchase order demonstrates that the purchase
was properly authorized before funds were committed.
3. During an audit, you discover that the same employee approves
purchases, receives goods, and processes payments. This is an example
of:
A. Proper segregation of duties
B. A potential internal control weakness
END OF
PAGE
2
, NYC MANAGEMENT LATEST
AUDITOR TRAINEE
PRACTICE EXAMINATION
QUESTIONS AND
ANSWERS 2026 - 2027
C. Effective risk management
D. Efficient workflow
Correct Answer: B
Rationale: Segregating key duties reduces the risk of fraud and errors by
preventing one individual from controlling an entire transaction.
4. What is the main objective of internal controls?
A. Eliminate all organizational risks
B. Provide reasonable assurance that organizational objectives will be
achieved
C. Increase employee salaries
D. Reduce customer service
END OF
PAGE
3
AUDITOR TRAINEE
PRACTICE EXAMINATION
QUESTIONS AND
ANSWERS 2026 - 2027
1. What is the primary purpose of an internal audit?
A. To maximize company profits
B. To provide independent assurance that risk management, internal
controls, and governance processes are functioning effectively
C. To prepare tax returns
D. To supervise all employees
Correct Answer: B
Rationale: Internal auditing independently evaluates the effectiveness of
controls, risk management, and governance to help an organization
achieve its objectives.
2. Which document provides the strongest evidence that a payment was
authorized?
END OF
PAGE
1
, NYC MANAGEMENT LATEST
AUDITOR TRAINEE
PRACTICE EXAMINATION
QUESTIONS AND
ANSWERS 2026 - 2027
A. An unsigned invoice
B. An approved purchase order with the required authorization
C. A handwritten note from an employee
D. A verbal statement
Correct Answer: B
Rationale: An approved purchase order demonstrates that the purchase
was properly authorized before funds were committed.
3. During an audit, you discover that the same employee approves
purchases, receives goods, and processes payments. This is an example
of:
A. Proper segregation of duties
B. A potential internal control weakness
END OF
PAGE
2
, NYC MANAGEMENT LATEST
AUDITOR TRAINEE
PRACTICE EXAMINATION
QUESTIONS AND
ANSWERS 2026 - 2027
C. Effective risk management
D. Efficient workflow
Correct Answer: B
Rationale: Segregating key duties reduces the risk of fraud and errors by
preventing one individual from controlling an entire transaction.
4. What is the main objective of internal controls?
A. Eliminate all organizational risks
B. Provide reasonable assurance that organizational objectives will be
achieved
C. Increase employee salaries
D. Reduce customer service
END OF
PAGE
3
