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IIA Certification in Risk Management Assurance Sample Questions:

1. An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

A) Neither approach to testing the audit theory would be cost effective.
B) Nonstatistical sampling only
C) Statistical sampling only
D) A combination of both statistical and nonstatistical sampling.

2. An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

A) The external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.
B) The external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.
C) The external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.
D) The external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.

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

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

4. Which of the following professional development approaches would offer internal auditors the most opportunities to broaden their engagement experiences?

A) Send internal auditors to external trainings in advanced internal audit topics.
B) Rotate internal auditors among different engagement assignments.
C) Assign more experienced internal auditors to mentor the less experienced auditors.
D) Appraise internal auditors' performance and competencies at least annually and issue constructive feedback.

5. In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers' accounts?

A) The customer service department is not forwarding complaints to the accounts receivable department.
B) Invoices are not being mailed to customers.
C) An employee is tampering with customer checks.
D) Employees are submitting fraudulent expense reports.

Solutions: