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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

A) Decision trees rating actual performance against requirements.
B) A program evaluation and review technique chart.
C) Queuing theory to assess potential bottlenecks in the process.
D) A Bedford analysis of orders filled to average delivery times.

2. Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred.
According to the Standards, which of the following principles did the CAE violate?

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

3. Forty-five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.
Which of the following represents the organization's residual risk for online customer payments due?

A) $33, 750
B) $45, 000
C) $11, 250
D) $25, 000

4. According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?

A) When auditing investments, the auditor identified instruments with which he was unfamiliar. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to A. perform a proper assessment.
B) An auditor in charge needed to have testing completed by the end of the month, but was behind schedule.He identified a junior auditor to conduct the work for him on a complex area of the organization.
C) An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.
D) An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.

5. Which of the following options is the most cost-effective and efficient way for internal auditors to keep current with the latest developments in the internal audit profession?

A) Attending annual professional conferences and seminars.
B) Participating in on-the-job training in various departments of the organization.
C) Pursuing as many professional certifications as possible.
D) Maintaining membership in The HA and similar professional organizations and subscribing to relevant email updates or news feeds.

Solutions: