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IIA Certification in Risk Management Assurance Sample Questions:

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

A) The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
B) 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.
C) The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
D) The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

2. Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?
1. Appropriate levels of authority and responsibility.
2. Supervision of staff and appropriate review of work.
3. The seniority of management in the organization.
4. The ability to trace each transaction to an accountable and responsible individual.

A) 1.3, and 4.
B) 2, 3, and 4.
C) 1,2, and 3.
D) 1.2, and 4.

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

4. Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

A) Assist the CAE with hiring objective and competent internal audit staff.
B) Encourage the CAE to communicate and coordinate with the external auditor.
C) Approve the annual budget and resource plan for the internal audit activity.
D) Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).

5. Which of the following best describes the misdirection of payments on accounts receivable to an employee's bank account?

A) Fraud on the balance sheet.
B) Fraud open on the books.
C) Fraud off the books.
D) Fraud hidden on the books.

Solutions: