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IIA Certification in Risk Management Assurance Sample Questions:

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

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

2. Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?

A) Review and adjudicate all violations of the code of conduct.
B) Implement a system of procedures to inform all employees of the code.
C) Act as an adviser to the committee responsible for reviewing violations of the code.
D) Lead the committee responsible for the oversight of the code.

3. The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

A) The CAE may self-review his work, provided he discloses this practice in the final report.
B) The CAE's work may be reviewed by any other experienced staff member within the IAA.
C) The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
D) The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.

4. What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

A) To identify key risks and areas of concern within the organization.
B) To help improve the overall quality of the internal audit activity's work.
C) To identify inefficiencies within the internal audit team.
D) To help the internal audit activity complete its annual assurance plan.

5. The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

A) Rationalization.
B) Commitment.
C) Pressure or incentive.
D) Opportunity.

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