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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?

A) Their reporting line within the organization.
B) Their understanding of auditing standards.
C) The nature of their regular duties and responsibilities.
D) Previous experience working with the internal audit activity.

2. An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?

A) Risk capacity.
B) Risk tolerance.
C) Risk appetite.
D) Risk identification.

3. Which segregation of duties would best reduce the risk of payroll fraud?

A) Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee's bank account.
B) Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.
C) Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.
D) Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

4. When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.

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

5. An internal auditor is conducting an engagement in the accounts payable department, which includes expressing an opinion at the micro level. According to IIA guidance, which of the following statements is true regarding micro-level opinions?
1. They are most effective when using a combination of current and prior engagement findings to draw conclusions.
2. They typically are based on defined procedures such as those found in an accounts payable reconciliation process.
3. They are discrete and not normally shared with senior management or the board.
4. They can rely on evidence taken from the work of other assurance activities across the organization.

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

Solutions: