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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following is the most common method of fraud detection?

A) Unannounced audits or reviews of programs or departments.
B) Tips received from employees or citizens.
C) Detective controls built into the daily processes.
D) Analytical reviews of high-risk areas.

2. Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

A) Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.
B) Immediately notify management of the area under review and the other internal auditors involved in the engagement.
C) Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.
D) Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

3. A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?

A) Organizational independence.
B) Individual independence.
C) Individual objectivity.
D) Due professional care.

4. Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

A) Intervening during an audit involving ethical wrongdoing.
B) Discussing periodic reports of ethical breaches.
C) Authorizing an investigation of an unsafe product.
D) Requesting a private meeting with senior management, without the presence of the chief audit executive.

5. Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?

A) Supervision of the chief audit executive (CAE) by senior management.
B) CAE certification.
C) Organizational status and objectivity.
D) Organizational knowledge and skills.

Solutions: