IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

A) Set clear performance standards for internal auditors and the internal audit activity.
B) Maintain industry-specific knowledge appropriate to the audit engagements
C) Apply problem-solving techniques for routine situations.
D) Manage and support a quality assurance and improvement program.

2. A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

A) She may participate, but only after she has completed one year with the IAA.
B) She may participate, because she did not previously work in the Human Resources Department.
C) She may participate, but she must be supervised by the auditor in charge.
D) She may participate for training purposes, to build her knowledge of the IAA.

3. Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?

A) The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
B) An independent third party has assessed the organization's system of internal controls to be adequate and effective.
C) The chief audit executive reports both functionally and administratively to the CEO.
D) The internal audit charter is drafted properly and approved by the appropriate parties.

4. Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?

A) Document verification.
B) Observation.
C) Inquiry.
D) Analytical review.

5. A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

A) Require the physician to submit a signed statement attesting that the treatments had been performed.
B) Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.
C) Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.
D) Use computer software to identify abnormal claims based on the insured's age and medical history.

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