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IIA Certification in Risk Management Assurance Sample Questions:

1. An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?

A) Not allow the audit manager to hire the contractor, as it would be a conflict of interest.
B) Allow the audit manager to hire the contractor, but state that the individual is not allowed to work on IT security audits for one year.
C) Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.
D) Allow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.

2. An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?

A) Risk sharing.
B) Risk avoidance.
C) Risk-benefit analysis.
D) Risk acceptance.

3. According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?
1. Identification.
2. Mitigation.
3. Remediation.
4. Reduction.

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

4. While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE's decision?

A) Proficiency.
B) Objectivity.
C) Independence.
D) Due professional care.

5. Which of the following scenarios would represent the greatest threat to the authority of the internal audit activity (IAA)?

A) A change was implemented requiring the IAA to report administratively to the organization's chief legal counsel rather than the board.
B) An internal auditor was informed by the chief financial officer that client survey results would be unfavorable unless the auditor changed a finding in the report.
C) Responsibility for risk management processes were removed from the IAA and placed under a newly created chief risk officer.
D) The IAA was denied access to expenditure and budget requirement reports because the reports were considered to be financial administrative matters.

Solutions: