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IIA Certification in Risk Management Assurance Sample Questions:
1. Which of the following conditions is the most likely indicator of fraud?
A) Departmental reports are consistently issued in an untimely manner.
B) Commissions are paid based on verified increases to sales.
C) Lower earnings occur during the industry's down cycle.
D) A manager regularly assumes subordinates' duties.
2. According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?
A) An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.
B) An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.
C) An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.
D) An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.
3. A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?
A) Hire consultants who possess the required knowledge to perform the engagement.
B) Ask the audit committee to decide the course of action.
C) Select the most experienced auditors in the department to perform the engagement.
D) Postpone the audit until the CAE hires internal audit staff with the required knowledge.
4. An internal audit charter should do which of the following?
A) Outline the schedule of future audits.
B) Define the scope of internal audit activities.
C) Establish the size of the internal audit activity.
D) Communicate the internal audit activity's goals.
5. A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?
A) Persuasion and collaboration.
B) Business acumen.
C) Governance, risk, and control.
D) Communication.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
