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IIA Certification in Risk Management Assurance Sample Questions:
1. A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?
A) Ask the audit committee to decide the course of action.
B) Select the most experienced auditors in the department to perform the engagement.
C) Postpone the audit until the CAE hires internal audit staff with the required knowledge.
D) Hire consultants who possess the required knowledge to perform the engagement.
2. A chief audit executive (CAE) is reviewing the internal audit activity's performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity's quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?
A) The scope and frequency of external assessments.
B) The type of audit productivity and performance statistics reported.
C) The overall effectiveness of the internal audit activity's periodic self assessments.
D) The adequacy of the day-to-day supervision and review process.
3. 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.
4. Why is a code of ethics for the internal audit profession necessary?
A) It requires auditors to exhibit loyalty to their organizations.
B) It ensures that all members of the profession possess the same level of competence.
C) It provides auditors with protection from lawsuits.
D) It guides internal auditors in their service to others.
5. What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?
A) Accepting the risk that there may be attempts at unauthorized access to the network.
B) Avoiding the risk of having a direct network connection to un-trusted networks.
C) Diversifying the risk that network access will not be available to legitimate, authorized users.
D) Sharing the risk that either firewall could be compromised by hackers.
Solutions:
Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |