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IIA Certification in Risk Management Assurance Sample Questions:

1. An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year.
As a result, which IIA Code of Ethics principle is presumed to be impaired?

A) Flexibility.
B) Competence.
C) Objectivity.
D) Independence.

2. According to COSO, which of the following is not considered one of the components of an organization's internal environment?

A) Knowledge and skills needed to perform activities.
B) Integrated responses to multiple risks.
C) Authority and responsibility to resolve issues.
D) Framework to plan, execute and monitor activities.

3. Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?

A) Act as an adviser to the committee responsible for reviewing violations of the code.
B) Review and adjudicate all violations of the code of conduct.
C) Lead the committee responsible for the oversight of the code.
D) Implement a system of procedures to inform all employees of the code.

4. Which of the following are components of the COSO enterprise risk management framework?
1. Objective setting.
2. External environment.
3. Data collection.
4. Control activities.

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

5. Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

A) Maintain a large foreign currency balance.
B) Hire a risk consultant.
C) Implement a hedging strategy.
D) Insist that customers only pay in a stable currency.

Solutions: