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IIA Certification in Risk Management Assurance Sample Questions:

1. According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?

A) One year.
B) Six months.
C) Three months.
D) Two years.

2. According to IIA guidance, which of the following should be included in the internal audit charter?

A) Identification of the organizational units where engagements are to be performed.
B) Organizational relationships and reporting lines.
C) Assigned responsibilities for designing and implementing controls.
D) The minimum resources and competencies needed for the internal audit activity.

3. According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?

A) Internal auditors should take a leading role in investigating all fraud-related cases.
B) Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
C) Internal auditors are responsible for ensuring that fraud does not occur.
D) Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.

4. Which of the following are components of the ISO 31000 risk management process?
1. Setting the context.
2. Risk treatment.
3. Risk avoidance.
4. Communication.

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

5. Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?

A) After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
B) The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
C) The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
D) The auditor tested samples of transactions to test the cash function's process flows.

Solutions: