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IIA Certification in Risk Management Assurance Sample Questions:

1. 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.

2. Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.

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

3. During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

A) Perform alternative forms of analytical procedures which provide no deviations.
B) Conclude that the budget was unreasonably set and accept the deviations.
C) Gather additional information to determine the cause of the deviations.
D) Report the deviations immediately to the audit committee.

4. An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?

A) Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
B) Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.
C) Ensure that adequate edit and reasonableness checks are built into the automated system.
D) Require a manager, who is independent of the system and who cannot change the table, to authorize and sign-off on any employee pay changes.

5. A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO).
Which of the following would impair the internal audit function's independence?

A) The CFO administers the annual evaluation process for the internal auditors.
B) The CFO manages the accounting of the budget for the internal audit function.
C) The CFO determines the scope of internal audit work in the accounting department.
D) The CFO provides feedback on the CAE's audit reports.

Solutions: