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IIA Certification in Risk Management Assurance Sample Questions:

1. According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

A) Senior management.
B) Board of directors.
C) Internal audit activity.
D) All employees.

2. An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

A) Working conditions.
B) Employees' families.
C) Shareholders and investors.
D) Marketplace competition.

3. According to IIA guidance, which of the following should be formally documented in the internal audit charter?

A) The budgeting process for the internal audit activity.
B) The nature of consulting services provided by the internal audit activity.
C) The internal audit activity's responsibility for imposing risk management processes.
D) The internal audit activity's responsibility for the organization's governance framework.

4. According to The IIA's Code of Ethics, which of the following statements is true?

A) When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.
B) When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.
C) When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.
D) When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.

5. According to IIA guidance, which of the following external groups is most likely to represent a liability risk, based on activities associated with the organization's corporate social responsibility program?

A) Consumers.
B) Suppliers.
C) Activists.
D) Investors.

Solutions: