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IIA Certification in Risk Management Assurance Sample Questions:

1. According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

A) Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
B) Developing retention requirements for engagement records that are consistent with organizational guidelines.
C) Rating each engagement record to assess its relevance and accessibility for the organization's board.
D) Controlling access to engagement records, including access by senior management.

2. Which of the following would not be considered part of preliminary survey of an engagement area?

A) Interviews with individuals affected by the entity.
B) Analytical reviews.
C) Sampling scope.
D) Functional walk through test.

3. Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

A) Warehouse receiving logs.
B) Suppliers' reports of over shipments.
C) Observation and inspection of inventory.
D) Purchase requisitions and purchase orders.

4. Which of the following combinations of conditions is most likely a red flag for fraud?

A) Hiring an employee with a prior fraud conviction and yearly management review.
B) A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.
C) Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.
D) The practice of surprise audits and the implementation of an employee support program.

5. An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management.
Which of the following correctly identifies the type of evidence this information represents?

A) Competent, corroborative evidence of future working capital requirements.
B) Competent, documentary evidence of future cash flow changes within the organization.
C) Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
D) Sufficient, circumstantial evidence of the future solvency of the organization.

Solutions: