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IIA Certification in Risk Management Assurance Sample Questions:

1. Allegations have been made that an organization's share price has been manipulated.
Which of the following would provide an internal auditor with the most objective evidence in this case?

A) Former financial consultants.
B) Major shareholders of the organization.
C) Large customers of the organization.
D) Former members of management.

2. According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

A) The chief audit executive.
B) The board.
C) The external auditors.
D) Senior management.

3. When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.

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

4. Which of the following situations is most likely to impair internal audit objectivity?

A) An internal auditor performs an audit in a department that is led by the auditor's close friend.
B) According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
C) An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
D) An internal auditor reports both functionally and administratively to the chief financial officer (CFO).

5. Which of the following is a common type of payroll fraud?

A) Unearned bonuses or commissions.
B) Unauthorized overtime.
C) Skimming.
D) Fictitious employees.

Solutions: