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IIA Certification in Risk Management Assurance Sample Questions:

1. According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization's operations?

A) The services must be aligned with those defined in the internal audit charter.
B) The services may preclude assurance services from the consulting engagement.
C) The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.
D) The services impose no responsibility to communicate information other than to the engagement client.

2. When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:

A) Gather factual data on several different topics.
B) Determine agreement or disagreement with a stated viewpoint.
C) Obtain information based on the person's own perspective.
D) Obtain specific answers and maximize efficiency.

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

4. Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

A) The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
B) An independent third party has assessed the organization's system of internal controls to be adequate and effective.
C) The chief audit executive reports both functionally and administratively to the CEO.
D) The internal audit charter is drafted properly and approved by the appropriate parties.

5. An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

A) Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.
B) Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.
C) Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.
D) Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

Solutions: