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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following does not need to be defined in the internal audit charter?

A) The audit engagements to be performed during the upcoming year.
B) The scope of internal audit activities.
C) Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.
D) The internal audit activity's position within the organization.

2. The chief audit executive (CAE) of a mid-sized pharmaceutical organization has operational responsibility for the regulatory compliance function. The auditcommittee requests an assessment of regulatory compliance.
According to IIA guidance, which of the following is the CAE's best course of action?

A) Have a regulatory compliance staff member perform a self-assessment, to be reviewed by a proficient internal auditor.
B) Have a proficient internal audit staff member perform the audit and report the results of the assessment directly to senior management and the board.
C) Have a proficient internal audit staff member perform the assessment and disclose the impairment in the audit report and to the board.
D) Contract with a third-party entity or external auditor to complete the assessment and report the results to senior management and the board.

3. A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?

A) They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
B) They are in violation of neither the IIA Code of Ethics nor the Standards.
C) They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
D) They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.

4. Why is a code of ethics for the internal audit profession necessary?

A) It provides auditors with protection from lawsuits.
B) It ensures that all members of the profession possess the same level of competence.
C) It requires auditors to exhibit loyalty to their organizations.
D) It guides internal auditors in their service to others.

5. According to IIA guidance, which of the following is the best example of a system application control?

A) A physical security control over a data center.
B) A program change management control.
C) A system development life cycle control.
D) An input control over data integrity.

Solutions: