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IIA Certification in Risk Management Assurance Sample Questions:

1. The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?

A) Internal control checklist.
B) Cross-functional flow chart.
C) Procurement employee survey.
D) Segregation of duties matrix.

2. When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?
1. Findings of the last audit engagement performed.
2. Probability of significant errors, irregularities, or noncompliance.
3. Extent of work needed to achieve engagement objectives.
4. Cost of the engagement versus the potential benefits.

A) 1 and 4 only
B) 1, 2, 3, and 4
C) 2, 3, and 4 only
D) 2 and 3 only

3. Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?

A) It considers tolerable deviation rate more effectively than does statistical sampling.
B) Non-statistical sample results must be projected to the population.
C) Lesser evidence is required to support a conclusion than for statistical sampling.
D) Sampling risk will be accurately quantified through non-statistical sampling.

4. According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving its use of tools and techniques?

A) Financial accounting.
B) Ethics and fraud.
C) Negotiation and conflict resolution.
D) Project management.

5. Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?

A) Their understanding of auditing standards.
B) Previous experience working with the internal audit activity.
C) The nature of their regular duties and responsibilities.
D) Their reporting line within the organization.

Solutions: