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IIA Certification in Risk Management Assurance Sample Questions:
1. Which of the following situations is most likely to impair internal audit objectivity?
A) An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
B) An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
C) According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
D) An internal auditor performs an audit in a department that is led by the auditor's close friend.
2. A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?
A) Due professional care.
B) Individual objectivity.
C) Organizational independence.
D) Individual independence.
3. The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?
A) The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.
B) The CAE should seek sufficient funding to increase audit resources to meet the minimum requirements of the Standards.
C) The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.
D) The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.
4. What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?
A) The testimonial evidence obtained during facilitated workshops is generally considered more reliable.
B) During facilitated workshops, people more openly say things to internal auditors than during private interviews.
C) Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.
D) Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.
5. Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?
A) Authorizing an investigation of an unsafe product.
B) Intervening during an audit involving ethical wrongdoing.
C) Requesting a private meeting with senior management, without the presence of the chief audit executive.
D) Discussing periodic reports of ethical breaches.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |
By Dana
