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IIA Certification in Risk Management Assurance Sample Questions:

1. An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter?

A) The purpose of the IAA.
B) A detailed audit plan or program for the year.
C) The job specifications and descriptions of the internal audit staff.
D) The IAA's right to have unrestricted access to functions, records, personnel, and physical property.

2. Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?
1. Appropriate levels of authority and responsibility.
2. Supervision of staff and appropriate review of work.
3. The seniority of management in the organization.
4. The ability to trace each transaction to an accountable and responsible individual.

A) 2, 3, and 4.
B) 1.2, and 4.
C) 1.3, and 4.
D) 1,2, and 3.

3. When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?
1. Findings of the last audit engagement performed.
2. Probability of significant errors, irregularities, or noncompliance.
3. Extent of work needed to achieve engagement objectives.
4. Cost of the engagement versus the potential benefits.

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

4. Which of the following is most likely to function as a directive control?

A) Alert employees.
B) Insurance claims.
C) Cycle counts.
D) Security dogs.

5. According to IIA guidance, when preparing the charter for the internal audit activity, the chief audit executive (CAE), board, and senior management should agree on which of the following?
1. The standards to be used by the internal audit activity.
2. The internal audit activity's code of ethics.
3. The CAE's reporting line.
4. The internal audit activity's responsibilities.

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

Solutions: