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IIA Certification in Risk Management Assurance Sample Questions:

1. In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

A) Understanding regulatory and legal framework and assessing its relevance.
B) Maintaining technical aspects of accounting standards and reporting processes.
C) Assessing how IT contributes to organization objectives, risks, and relevance to audit.
D) Maintaining industry-specific knowledge appropriate to the organization.

2. Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

A) Set clear performance standards for internal auditors and the internal audit activity.
B) Apply problem-solving techniques for routine situations.
C) Manage and support a quality assurance and improvement program.
D) Maintain industry-specific knowledge appropriate to the audit engagements

3. During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole.
This is an example of which of the following analytical auditing procedures?

A) Reasonableness test.
B) Benchmarking.
C) Trend analysis.
D) Regression analysis.

4. Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

A) The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
B) The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.
C) The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.
D) The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.

5. Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

A) Security cameras that monitor cash handling at the register are not functioning.
B) The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.
C) Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
D) The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.

Solutions: