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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following would not be considered part of preliminary survey of an engagement area?

A) Analytical reviews.
B) Sampling scope.
C) Functional walk through test.
D) Interviews with individuals affected by the entity.

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

3. Which of the following is most likely to function as a directive control?

A) Cycle counts.
B) Security dogs.
C) Alert employees.
D) Insurance claims.

4. Which of the following enhances the independence of the internal audit activity?

A) The chief executive officer approves the internal audit charter.
B) The chief audit executive (CAE) approves the annual internal audit plan.
C) The audit committee approves the CAE's annual salary increase.
D) The CAE administratively reports to the board.

5. Which of the following is most likely to be considered a control weakness?

A) Department managers initiate purchase requests that must be approved by the plant superintendent.
B) Buyers promptly update the official vendor listing as new supplier sources become known.
C) Vendor invoice payment requests are accompanied by a purchase order and receiving report.
D) Purchase orders are typed by the purchasing department using prenumbered forms.

Solutions: