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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

A) The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
B) The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.
C) The auditor recommends improvements for all of the organization's procedures and practices.
D) The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.

2. Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

A) Implement a hedging strategy.
B) Insist that customers only pay in a stable currency.
C) Maintain a large foreign currency balance.
D) Hire a risk consultant.

3. According to the COSO enterprise risk management framework, which of the following best describes the activity that helps ensure risk responses are carried out effectively?

A) Control activities.
B) Information and communication.
C) Objective setting.
D) Event identification.

4. A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities. According to MA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

A) Review the investigation and implement any improvements to the process.
B) Conduct lessons learned sessions to ascertain how the fraud occurred and which controls failed.
C) Plan employee sessions and team building strategies for the organization to improve awareness of fraud among employees.
D) Determine why The fraud was not detected earlier and design controls to strengthen early detection.

5. Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?

A) The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
B) The scope, findings, risks, recommendations, and agreed-upon improvement actions.
C) The number and types of people involved in the assessment, costs, and duration of the QAIP
D) The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.

Solutions: