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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following is a preventive control?

A) Placing controls on physical access to inventory.
B) Creating an audit trail.
C) Reconciling purchase orders with approvals.
D) Reviewing expense accounts for irregularities.

2. According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?

A) An internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.
B) Follow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.
C) Internal assessments must be performed at least once every five years by a qualified assessor.
D) Internal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.

3. According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?
1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement's objectives.

A) 1, 2, and 3
B) 2, 3, and 4
C) 1, 3, and 4
D) 1, 2, and 4

4. After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

A) At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.
B) In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.
C) To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.
D) In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.

5. Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

A) An independent third party has assessed the organization's system of internal controls to be adequate and effective.
B) The chief audit executive reports both functionally and administratively to the CEO.
C) The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
D) The internal audit charter is drafted properly and approved by the appropriate parties.

Solutions: