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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?

A) Organizational status and objectivity.
B) Supervision of the chief audit executive (CAE) by senior management.
C) CAE certification.
D) Organizational knowledge and skills.

2. Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

A) Warehouse receiving logs.
B) Suppliers' reports of over shipments.
C) Observation and inspection of inventory.
D) Purchase requisitions and purchase orders.

3. Which of the following is a preventive control?

A) Creating an audit trail.
B) Reviewing expense accounts for irregularities.
C) Placing controls on physical access to inventory.
D) Reconciling purchase orders with approvals.

4. Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

A) Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.
B) Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.
C) Immediately notify management of the area under review and the other internal auditors involved in the engagement.
D) Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.

5. Which of the following is an example of a directive control?

A) Exception reports.
B) Segregation of duties.
C) Automated reconciliations.
D) Incentive compensation plans.

Solutions: