Intelligent instruments are common components in industrial machinery, and fault diagnosis in IoT systems requires the handling of real-time sensor data and expert knowledge. IoT sensors cannot collect data for the diagnosis of all fault types in a specific instrument, and long-distance data transfer introduces additional uncertainties. However, because industrial equipment has complex fault causes and performances, it is typically difficult or expensive to obtain exact fault probabilities. Therefore, in this study, we proposed an innovative failure detection and diagnosis model for intelligent instruments in an IoT system using a Bayesian network, with a focus on handling uncertainties in expert knowledge and IoT monitoring information. The model addresses the challenge of complex fault causes and performances in industrial equipment, which make the obtainment of exact fault probabilities difficult or expensive. The trapezoidal intuitionistic fuzzy number (TrIFN)-based entropy method was applied in order to aggregate expert knowledge to generate priority probability, and the Leaky-OR gate was used to calculate CPT. The effectiveness of the proposed strategy was demonstrated through its application to an intelligent pressure transmitter (IPT) using the GeNIe software.