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IIA Certification in Risk Management Assurance Sample Questions:

1. Reviewing prior audit reports and supporting workpapers before an engagement starts enables an internal auditor to do which of the following?
1. To understand better the activity and processes that will be audited.
2. To identify the audit procedures that will be used during the engagement.
3. To ensure that matters of greatest vulnerability will be addressed.
4. To use the information obtained as evidence in the current engagement.

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

2. Which of the following actions would be characterized as a preventive control to safeguard inventory from the risk of theft?
1. Locking doors and physically securing inventory items.
2. Independently observing the receipt of materials.
3. Conducting monthly inventory counts.
4. Requiring the use of employee ID badges at all times.

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

3. According to COSO, which of the following describes a principle related to the control environment?

A) The organization performs evaluations to ascertain whether internal control components are present and functioning.
B) The organization identifies and assesses changes that could significantly impact the system of internal control.
C) The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
D) The organization selects and develops control activities that contribute to the mitigation of risks.

4. According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?
1. Advocating the establishment of a risk management function.
2. Identifying and evaluating significant risk exposures during audit engagements.
3. Developing a risk response for the organization if there is no chief risk officer.
4. Benchmarking risk management activities with other organizations.
5. Documenting risk mitigation strategies and techniques.

A) 1.2. 4. and 5 only.
B) 4 and 5 only.
C) 1.2, and 3 only.
D) 2. 3. 4. and 5 only.

5. Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?
1. Appropriate levels of authority and responsibility.
2. Supervision of staff and appropriate review of work.
3. The seniority of management in the organization.
4. The ability to trace each transaction to an accountable and responsible individual.

A) 1.3, and 4.
B) 2, 3, and 4.
C) 1.2, and 4.
D) 1,2, and 3.

Solutions: