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IIA Certification in Risk Management Assurance Sample Questions:

1. After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

A) In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.
B) At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.
C) In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.
D) To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.

2. Which of the following is most likely to be considered a control weakness?

A) Vendor invoice payment requests are accompanied by a purchase order and receiving report.
B) Buyers promptly update the official vendor listing as new supplier sources become known.
C) Department managers initiate purchase requests that must be approved by the plant superintendent.
D) Purchase orders are typed by the purchasing department using prenumbered forms.

3. Which of the following is a weakness of observation as audit evidence?

A) It cannot be used to test the completeness assertion.
B) It cannot be relied upon because the evidence is not persuasive.
C) It cannot be used to test the occurrence assertion.
D) It cannot be used to test the existence assertion.

4. Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

A) Performance management.
B) Governance, risk, and control.
C) Business acumen.
D) Internal audit delivery.

5. A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?

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

Solutions: