[2024] Pass Key features of IIA-CRMA-ADV Course with Updated 285 Questions
IIA-CRMA-ADV Sample Practice Exam Questions 2024 Updated Verified
NEW QUESTION # 115
Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?
- A. The board approves the annual performance evaluation of the chief audit executive.
- B. The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.
- C. The audit manager conducts an internal quality assessment of the internal audit activity's adherence to the Standards.
- D. The internal auditor reviews the physical access to merchandise during an inventory count.
Answer: D
NEW QUESTION # 116
Which of the following best demonstrates the authority of the internal audit activity?
- A. Achieving engagement objectives.
- B. Determining the scope of internal audit services.
- C. Improving the integrity of information.
- D. Suggesting alternatives to decision makers.
Answer: B
NEW QUESTION # 117
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?
- A. CAE certification.
- B. Organizational knowledge and skills.
- C. Organizational status and objectivity.
- D. Supervision of the chief audit executive (CAE) by senior management.
Answer: C
NEW QUESTION # 118
Which of the following statements best explains why internal auditors map processes?
1. To obtain audit evidence to support auditor's observations.
2. To determine scope and objectives of the audit.
3. To facilitate the identification of ownership and responsibility for key risks.
4. To identify potential efficiency improvements.
- A. 3 and 4.
- B. 1 and 2.
- C. 2 and 4.
- D. 1 and 3.
Answer: A
NEW QUESTION # 119
Who is responsible for setting the risk appetite?
- A. Board of directors.
- B. Chief risk officer.
- C. Operations management.
- D. External auditors.
Answer: A
NEW QUESTION # 120
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?
- A. Evaluating risk management processes.
- B. Supporting managers to identify ways to mitigate risks.
- C. Providing assurance that risks are evaluated correctly.
- D. Recommending accountability for risk management.
Answer: D
NEW QUESTION # 121
According to IIA guidance, which of the following should be formally documented in the internal audit charter?
- A. The internal audit activity's responsibility for the organization's governance framework.
- B. The budgeting process for the internal audit activity.
- C. The nature of consulting services provided by the internal audit activity.
- D. The internal audit activity's responsibility for imposing risk management processes.
Answer: C
NEW QUESTION # 122
According to IIA guidance, which of the following external groups is most likely to represent a liability risk, based on activities associated with the organization's corporate social responsibility program?
- A. Suppliers.
- B. Activists.
- C. Investors.
- D. Consumers.
Answer: B
NEW QUESTION # 123
Which of the following statements describes a control failure that is not directly attributable to a customer billing application?
1. End users have raised a number of concerns regarding data integrity.
2. An untested program change is transferred from the test environment to production.
3. Purchase history does not reconcile with accounts receivable for some customers.
4. End user security is inadvertently granted to an unauthorized individual by management.
- A. 1 and 4.
- B. 2 and 3.
- C. 1 and 3.
- D. 2 and 4.
Answer: D
NEW QUESTION # 124
While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?
- A. Coordination.
- B. Due professional care.
- C. Resource management.
- D. Engagement supervision.
Answer: B
NEW QUESTION # 125
When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.
- A. 3 and 4 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: C
NEW QUESTION # 126
What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?
- A. During facilitated workshops, people more openly say things to internal auditors than during private interviews.
- B. Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.
- C. Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.
- D. The testimonial evidence obtained during facilitated workshops is generally considered more reliable.
Answer: C
NEW QUESTION # 127
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?
- A. Usage of IT system policy.
- B. Risk management framework.
- C. Acceptance of gifts policy.
- D. Personal responsibility policy.
Answer: C
NEW QUESTION # 128
Which of the following scenarios best illustrates the principle of due professional care?
- A. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.
- B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.
- C. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.
- D. An internal auditor evaluates the significant risks arising from a consulting engagement.
Answer: D
NEW QUESTION # 129
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?
- A. They are in violation of neither the IIA Code of Ethics nor the Standards.
- B. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
- C. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
- D. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
Answer: A
NEW QUESTION # 130
A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?
- A. Logic test.
- B. Check digits.
- C. Data integrity tests.
- D. Balancing control activities.
Answer: A
NEW QUESTION # 131
Which of the following risk management activities is most appropriate for an internal auditor to undertake?
- A. Implement risk responses on management's behalf.
- B. Review the management of key risks.
- C. Impose risk management processes.
- D. Coordinate risk management activities.
Answer: B
NEW QUESTION # 132
A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?
- A. Select the most experienced auditors in the department to perform the engagement.
- B. Hire consultants who possess the required knowledge to perform the engagement.
- C. Postpone the audit until the CAE hires internal audit staff with the required knowledge.
- D. Ask the audit committee to decide the course of action.
Answer: B
NEW QUESTION # 133
Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?
- A. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
- B. After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
- C. The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
- D. The auditor tested samples of transactions to test the cash function's process flows.
Answer: B
NEW QUESTION # 134
Which of the following actions should an internal auditor take to exercise due professional care?
1. Consider the probability of significant noncompliance in each audit engagement.
2. Weigh the cost of assurance against the benefits.
3. Perform assurance procedures with sufficient care to ensure that all risks are identified.
- A. 1 and 2 only
- B. 1, 2, and 3
- C. 2 and 3 only
- D. 1 and 3 only
Answer: A
NEW QUESTION # 135
A manufacturing organization discovers that the waste water released has failed to meet permitted limits.
Which control function will be least effective in correcting the issue?
- A. Posting signs that tell employees which substances may be disposed of via sinks and floor drains within the facility.
- B. Diluting pollutants by flushing sinks and floor drains daily with large volumes of clean water.
- C. Establishing a preventive maintenance program for the pretreatment system.
- D. Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.
Answer: B
NEW QUESTION # 136
Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?
- A. Observation of the facility during operations.
- B. Questioning of facility management, including the facility safety officer.
- C. Review of records involving safety violations, filed by facility production employees.
- D. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
Answer: A
NEW QUESTION # 137
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.
- A. 1, 2, and 3
- B. 1 and 4
- C. 2, 3, and 4
- D. 2 and 3 only
Answer: C
NEW QUESTION # 138
In which of the following functions would fraud be most likely to occur?
- A. Preparing customer statements.
- B. Maintaining custody of inventory records.
- C. Collecting payments on accounts.
- D. Approving changes to employee records.
Answer: C
NEW QUESTION # 139
According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?
1. Advocating the establishment of a risk management function.
2. Identifying and evaluating significant risk exposures during audit engagements.
3. Developing a risk response for the organization if there is no chief risk officer.
4. Benchmarking risk management activities with other organizations.
5. Documenting risk mitigation strategies and techniques.
- A. 1.2, and 3 only.
- B. 2. 3. 4. and 5 only.
- C. 1.2. 4. and 5 only.
- D. 4 and 5 only.
Answer: C
NEW QUESTION # 140
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