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IIA Certification in Risk Management Assurance Sample Questions:

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

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

2. What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?

A) Avoiding the risk of having a direct network connection to un-trusted networks.
B) Accepting the risk that there may be attempts at unauthorized access to the network.
C) Diversifying the risk that network access will not be available to legitimate, authorized users.
D) Sharing the risk that either firewall could be compromised by hackers.

3. Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.

A) 3 only
B) 1, 2, and 3
C) 2 and 3 only
D) 1 and 2 only

4. During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole.
This is an example of which of the following analytical auditing procedures?

A) Reasonableness test.
B) Trend analysis.
C) Regression analysis.
D) Benchmarking.

5. Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.

A) 2. 3, and 4.
B) 1,2, and 4.
C) 1.2, and 3.
D) 1.3, and 4.

Solutions: