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IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following is the most common method of fraud detection?

A) Tips received from employees or citizens.
B) Unannounced audits or reviews of programs or departments.
C) Analytical reviews of high-risk areas.
D) Detective controls built into the daily processes.

2. Which of the following factors have the greatest influence on the independence of the internal audit activity?

A) Quality assessments and cultural biases of the internal audit activity.
B) Employee incentives and self review of the internal audit activity.
C) Rotational assignments and familiarity of the internal audit activity.
D) Organizational positioning and scope control of the internal audit activity.

3. An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?

A) Risk tolerance.
B) Risk appetite.
C) Risk capacity.
D) Risk identification.

4. A large trucking organization wants to reduce traffic accidents by improving its system of internal controls.
Which of the following controls is correctly classified?
1. Review of speeding violations to identify repetitive locations and drivers is an example of a preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.

A) 1 and 4.
B) 2 and 3.
C) 3 and 4.
D) 1 and 2.

5. An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?

A) Management outsources the product division to a third party.
B) Management modifies the product division to minimize errors.
C) Management allows the product division to remain unchanged.
D) Management sells the product division to a competitor.

Solutions: