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IIA Certification in Risk Management Assurance Sample Questions:

1. An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?

A) The gross margin has decreased.
B) The division produced fewer items this year than in prior years.
C) Cash or accounts receivable has decreased.
D) The gross margin has increased.

2. During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

A) Report the deviations immediately to the audit committee.
B) Gather additional information to determine the cause of the deviations.
C) Perform alternative forms of analytical procedures which provide no deviations.
D) Conclude that the budget was unreasonably set and accept the deviations.

3. Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

A) Recommending accountability for risk management.
B) Evaluating risk management processes.
C) Supporting managers to identify ways to mitigate risks.
D) Providing assurance that risks are evaluated correctly.

4. A candidate has applied for an entry level internal audit position. The candidate holds a CISA (Certified Information Systems Auditor) designation, and has six months of audit experience, but limited knowledge of accounting principles and techniques. According to the IIA guidance, which of the following is the most relevant reason for the chief audit executive to consider this candidate?

A) Other internal auditors possess sufficient knowledge of accounting principles and techniques.
B) An entry level position does not require expertise in any particular area.
C) Accounting skills can be learned over time with appropriate training.
D) The candidate's information systems knowledge and real-world experience in internal auditing.

5. Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

A) Internal audit delivery.
B) Business acumen.
C) Performance management.
D) Governance, risk, and control.

Solutions: