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IIA Certification in Risk Management Assurance Sample Questions:

1. During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.
The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization.
Division management views the employee's actions as extra incentive to retain the employee.
A decision to include the employee's action in the engagement final communication would be:
1. A violation of the IIA Code of Ethics.
2. A violation of the reporting requirements in the Standards.
3. Justified and necessary, according to the IIA Code of Ethics and Standards.

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

2. Which of the following is the most common way that occupational fraud is detected?

A) External audits.
B) Key controls.
C) Internal audits.
D) Whistleblower hotline.

3. Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management's competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.

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

4. Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

A) A Bedford analysis of orders filled to average delivery times.
B) A program evaluation and review technique chart.
C) Decision trees rating actual performance against requirements.
D) Queuing theory to assess potential bottlenecks in the process.

5. Which of the following are components of the COSO enterprise risk management framework?
1. Objective setting.
2. External environment.
3. Data collection.
4. Control activities.

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

Solutions: