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IIA Certification in Risk Management Assurance Sample Questions:

1. A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?

A) Information and communication.
B) Control activities.
C) Control environment.
D) Monitoring activities.

2. Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

A) The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
B) The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
C) The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.
D) The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

3. Click the Exhibit.

Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?

A) Graph B only
B) Both A and B.
C) Graph A only
D) Neither A nor B.

4. A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annua snowfall for the coming winter. Which of the following best describes this type of risk?

A) Net.
B) Accepted.
C) Inherent.
D) Residual.

5. An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

A) Lower sales volume.
B) Lower obsolete stock disposal.
C) Higher inventory turnover.
D) Higher operating margin.

Solutions: