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IIA Certification in Risk Management Assurance Sample Questions:

1. An auditor in charge was reviewing the workpapers submitted by a newly hired internal auditor. She noted that the new auditor's analytical work did not include any rating or quantification of the risk assessment results, and she returned the workpapers for correction. Which section of the workpapers will the new auditor need to modify?

A) Condition section.
B) Criteria section.
C) Effect section.
D) Cause section.

2. According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?

A) The extent of work needed to achieve the engagement's objectives.
B) The use of innovative technology and data analysis techniques.
C) The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.
D) The training courses necessary to enhance the internal auditor's knowledge, skills, and other competencies.

3. The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

A) The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.
B) The CAE's work may be reviewed by any other experienced staff member within the IAA.
C) The CAE may self-review his work, provided he discloses this practice in the final report.
D) The CAE's work should be reviewed by an individual with the appropriate background and knowledge.

4. Non-statistical sampling does not require which of the following?

A) The sample to be representative of the population.
B) Projecting the results to the population.
C) A smaller sample size than if selected using statistical sampling.
D) The sample to be selected haphazardly.

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

Solutions: