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IIA Certification in Risk Management Assurance Sample Questions:

1. A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?

A) Require that all staff obtain a minimum of two relevant audit certifications.
B) Perform a gap analysis of the IAA's existing knowledge, skills and competencies.
C) Engage a consultant to benchmark the IAA's training program against its peers.
D) Assign one experienced manager to better coordinate staff training and development activities.

2. The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?

A) Engagement supervision.
B) Employment of tools and techniques.
C) Demonstrated compliance with procedures.
D) Due professional care.

3. Which of the following best describes the assessment of risks?

A) Assess the likelihood and/or impact of risk on the achievement of organizational objectives.
B) Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.
C) Assess the amount of risk an organization can accept while pursuing its objectives.
D) Assess alternative strategies to reduce or eliminate major risks.

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

5. What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

A) Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.
B) Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.
C) The testimonial evidence obtained during facilitated workshops is generally considered more reliable.
D) During facilitated workshops, people more openly say things to internal auditors than during private interviews.

Solutions: