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IIA Certification in Risk Management Assurance Sample Questions:

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

2. According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?

A) The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.
B) The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.
C) The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
D) The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.

3. A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annua snowfall for the coming winter. Which of the following best describes this type of risk?

A) Residual.
B) Accepted.
C) Inherent.
D) Net.

4. Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

A) The CAE initials and dates every working paper after it has been reviewed.
B) The CAE utilizes an external third party to make an objective recommendation after each working paper review.
C) The CAE prepares a memorandum discussing the results of the working paper review.
D) The CAE completes an engagement working paper checklist.

5. A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?

A) Control environment.
B) Commitment.
C) Information and communication.
D) Control activities.

Solutions: