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IIA Certification in Risk Management Assurance Sample Questions:

1. Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.

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

2. Which of the following is an activity that an internal auditor must not perform?

A) Provide assurance for the effectiveness of anti-money laundering training.
B) Survey employees for their understanding of anti-money laundering practices.
C) Assess the risk of being fined for ineffective anti-money laundering practices.
D) Establish and provide continuing assurance on an anti-money laundering program for new hires.

3. Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?
1. Periodically reviewing the vendor list for unusual vendors and addresses.
2. Segregating duties for amount purchasing, receiving, shipping, and accounting.
3. Validating sequential integrity of purchase orders.
4. Verifying the validity of invoices with post office box addresses.

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

4. Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?

A) Interrogating a suspected fraudster.
B) Employing audit tests to detect fraud.
C) Planning an engagement of the area in which fraud is suspected.
D) Completing a process review to improve controls to prevent fraud.

5. According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

A) It helps ensure that appropriate professional judgments and conclusions are made.
B) It ensures that an appropriate chain of evidence is maintained through the workpapers.
C) It increases the likelihood of obtaining the audit client's agreement with the results.
D) It is required to demonstrate that effective engagement supervision has occurred.

Solutions: