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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?

A) The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.
B) The qualifications and independence of the assessment Team.
C) The internal audit activity's plan for resource allocation.
D) The number of audits from the annual internal audit plan that were completed last year.

2. Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

A) So that the individual objectivity of the internal audit staff can be more clearly established.
B) Because management requires the review to measure effectiveness of the internal audit activity.
C) So that there is assurance of the internal audit staff's proficiency to complete audit activities.
D) Because changes in the organization may impair the internal audit activity's ability to meet its objectives.

3. What should the internal auditor's role be in assessing the organization's ethical climate?

A) Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.
B) Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and B.
processes for achieving the desired level of legal and ethical compliance.
C) Perform background checks of potential new employees before they are hired by the organization.

4. Which of the following types of fraud includes embezzlement?

A) Bribery.
B) Fraudulent statements.
C) Corruption.
D) Misappropriation of assets.

5. During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?

A) MA Standards.
B) Definition of Internal Auditing.
C) The IIA's Code of Ethics.
D) Internal audit charter.

Solutions: