BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
BUS-A 375 - INTERNAL AUDITING ENTERPRISE RISK MANAGEMENT
AND CONTROLS | EXAM QUESTIONS AND CORRECT ANSWERS |
LATEST VERSION
BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
1. How many domains make up the IIA's Global Internal Audit
Standards?
A. Three
B. Five
C. Ten
D. Seven
CORRECT ANSWER : B. Five
The Global Internal Audit Standards are organized into five domains,
which contain 15 principles and 52 standards.
Page 1 of 68
, BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
2. Integrity, objectivity, competency, due professional care, and
confidentiality are principles found in which domain of the Global
Internal Audit Standards?
A. Governing the Internal Audit Function
B. Performing Internal Audit Services
C. Ethics and Professionalism
D. Managing the Internal Audit Function
CORRECT ANSWER : C. Ethics and Professionalism
Domain II, Ethics and Professionalism, sets out the five principles that
describe the behavioral expectations for internal auditors.
3. On what date did the IIA's Global Internal Audit Standards become
effective?
A. July 1, 2023
B. January 1, 2024
C. December 31, 2025
D. January 9, 2025
CORRECT ANSWER : D. January 9, 2025
The Standards were released in January 2024 and took effect on January
9, 2025, replacing the former IPPF standards.
4. In the IIA's Three Lines Model, which of the following is most
typically associated with second line roles?
A. Risk management and compliance functions
B. The internal audit function
C. The external auditor
D. Front-line operational managers
CORRECT ANSWER : A. Risk management and compliance functions
Second line roles provide expertise, support, monitoring, and challenge on
risk-related matters, which describes risk management and compliance
functions.
Page 2 of 68
, BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
5. Within the Three Lines Model, which party provides independent
and objective assurance and advice on the adequacy and effectiveness
of governance and risk management?
A. External regulators
B. Senior management
C. The chief risk officer
D. Internal audit
CORRECT ANSWER : D. Internal audit
Internal audit performs the third line role, giving independent and
objective assurance and advice to the governing body and management.
6. The IIA's Three Lines Model, issued in 2020, updated which earlier
framework?
A. The Three Lines of Defense model
B. The COSO Internal Control Framework
C. The COBIT 5 framework
D. The Turnbull Guidance
CORRECT ANSWER : A. The Three Lines of Defense model
The 2020 model replaced the Three Lines of Defense, shifting the
emphasis from purely defensive roles to value creation and protection.
7. To support independence, the chief audit executive should ordinarily
report:
A. Functionally and administratively to the CFO
B. Functionally to the board and administratively to senior management
C. Functionally and administratively to the controller
D. Functionally to the external auditor and administratively to the CEO
CORRECT ANSWER : B. Functionally to the board and
administratively to senior management
A dual reporting line, functional to the board and administrative to senior
management, protects internal audit from undue influence.
Page 3 of 68
, BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
8. Which body should approve the internal audit charter?
A. The external auditor
B. The chief financial officer
C. The board
D. The internal audit staff
CORRECT ANSWER : C. The board
The board approves the charter, which establishes internal audit's
mandate, authority, scope, and reporting relationships.
9. Under the Global Internal Audit Standards, how often must an
external quality assessment of the internal audit function be performed
at a minimum?
A. Once every ten years
B. Once every year
C. Once every five years
D. Once every three years
CORRECT ANSWER : C. Once every five years
An external quality assessment by a qualified, independent assessor or
team is required at least once every five years.
10. A quality assurance and improvement program (QAIP) for internal
audit should include:
A. Both internal and external assessments
B. Only ongoing supervision of engagements
C. Only a client satisfaction survey
D. Only an annual external peer review
CORRECT ANSWER : A. Both internal and external assessments
A quality program combines ongoing monitoring, periodic self-
assessments, and external assessments to evaluate conformance and
performance.
Page 4 of 68
BUS-A 375 - INTERNAL AUDITING ENTERPRISE RISK MANAGEMENT
AND CONTROLS | EXAM QUESTIONS AND CORRECT ANSWERS |
LATEST VERSION
BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
1. How many domains make up the IIA's Global Internal Audit
Standards?
A. Three
B. Five
C. Ten
D. Seven
CORRECT ANSWER : B. Five
The Global Internal Audit Standards are organized into five domains,
which contain 15 principles and 52 standards.
Page 1 of 68
, BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
2. Integrity, objectivity, competency, due professional care, and
confidentiality are principles found in which domain of the Global
Internal Audit Standards?
A. Governing the Internal Audit Function
B. Performing Internal Audit Services
C. Ethics and Professionalism
D. Managing the Internal Audit Function
CORRECT ANSWER : C. Ethics and Professionalism
Domain II, Ethics and Professionalism, sets out the five principles that
describe the behavioral expectations for internal auditors.
3. On what date did the IIA's Global Internal Audit Standards become
effective?
A. July 1, 2023
B. January 1, 2024
C. December 31, 2025
D. January 9, 2025
CORRECT ANSWER : D. January 9, 2025
The Standards were released in January 2024 and took effect on January
9, 2025, replacing the former IPPF standards.
4. In the IIA's Three Lines Model, which of the following is most
typically associated with second line roles?
A. Risk management and compliance functions
B. The internal audit function
C. The external auditor
D. Front-line operational managers
CORRECT ANSWER : A. Risk management and compliance functions
Second line roles provide expertise, support, monitoring, and challenge on
risk-related matters, which describes risk management and compliance
functions.
Page 2 of 68
, BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
5. Within the Three Lines Model, which party provides independent
and objective assurance and advice on the adequacy and effectiveness
of governance and risk management?
A. External regulators
B. Senior management
C. The chief risk officer
D. Internal audit
CORRECT ANSWER : D. Internal audit
Internal audit performs the third line role, giving independent and
objective assurance and advice to the governing body and management.
6. The IIA's Three Lines Model, issued in 2020, updated which earlier
framework?
A. The Three Lines of Defense model
B. The COSO Internal Control Framework
C. The COBIT 5 framework
D. The Turnbull Guidance
CORRECT ANSWER : A. The Three Lines of Defense model
The 2020 model replaced the Three Lines of Defense, shifting the
emphasis from purely defensive roles to value creation and protection.
7. To support independence, the chief audit executive should ordinarily
report:
A. Functionally and administratively to the CFO
B. Functionally to the board and administratively to senior management
C. Functionally and administratively to the controller
D. Functionally to the external auditor and administratively to the CEO
CORRECT ANSWER : B. Functionally to the board and
administratively to senior management
A dual reporting line, functional to the board and administrative to senior
management, protects internal audit from undue influence.
Page 3 of 68
, BUS-A 375 Internal Audting-Enterprise Risk Management and Controls
8. Which body should approve the internal audit charter?
A. The external auditor
B. The chief financial officer
C. The board
D. The internal audit staff
CORRECT ANSWER : C. The board
The board approves the charter, which establishes internal audit's
mandate, authority, scope, and reporting relationships.
9. Under the Global Internal Audit Standards, how often must an
external quality assessment of the internal audit function be performed
at a minimum?
A. Once every ten years
B. Once every year
C. Once every five years
D. Once every three years
CORRECT ANSWER : C. Once every five years
An external quality assessment by a qualified, independent assessor or
team is required at least once every five years.
10. A quality assurance and improvement program (QAIP) for internal
audit should include:
A. Both internal and external assessments
B. Only ongoing supervision of engagements
C. Only a client satisfaction survey
D. Only an annual external peer review
CORRECT ANSWER : A. Both internal and external assessments
A quality program combines ongoing monitoring, periodic self-
assessments, and external assessments to evaluate conformance and
performance.
Page 4 of 68
