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IIA Certification in Risk Management Assurance Sample Questions:

1. Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?
1. Periodically report about the accounting standards followed by the organization.
2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.
3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.
4. Maintain open and effective communications with the audit committee.

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

2. An assurance mapping exercise helps an organization do which of the following?
1. Provide assurance to stakeholders that risks are managed and reported, and regulatory and legal obligations are met.
2. Fulfill best practices in the industry.
3. Identify and address any gaps in the risk management process.
4. Identify fraud.

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

3. The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?

A) Engagement supervision.
B) Demonstrated compliance with procedures.
C) Employment of tools and techniques.
D) Due professional care.

4. Which of the following is most likely to enhance an internal auditor's objectivity?

A) An auditor is appropriately able to communicate results.
B) An auditor avoids conflicts of interest.
C) An auditor is unrestricted in determination of scope.
D) An auditor performs his work free from interference.

5. A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

A) From acceptance to avoidance.
B) From sharing to avoidance.
C) From sharing to reduction.
D) From acceptance to reduction.

Solutions: