IIA IIA-CRMA Exam Dumps

IIA IIA-CRMA Sample Question Answers

Question # 1

Which of the following enhances the independence of the internal audit activity? 

A. The chief audit executive (CAE) approves the annual internal audit plan.
B. The CAE administratively reports to the board.
C. The audit committee approves the CAE's annual salary increase.
D. The chief executive officer approves the internal audit charter.

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Question # 2

An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?

A. The residual risk is lower than or equal to the risk appetite. 
B. The residual risk is higher than or equal to the risk appetite. 
C. The inherent risk is lower than or equal to the risk tolerance. 
D. The inherent risk is higher than or equal to the risk tolerance. 

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Question # 3

According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?

A. Control environment.
B. Control activities.
C. Risk assessment.
D. Monitoring.

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Question # 4

During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?

A. Definition of Internal Auditing.
B. MA Standards.
C. Internal audit charter.
D. The IIA's Code of Ethics

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Question # 5

A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence? 

A. Preparing the financial statements for the company's defined contribution plan.
B. Performing a pre-implementation review of the company's payroll application.
C. Providing the COBIT framework as a possible IT management tool.
D. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

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Question # 6

What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

A. To help the internal audit activity complete its annual assurance plan.
B. To identify inefficiencies within the internal audit team.
C. To help improve the overall quality of the internal audit activity's work.
D. To identify key risks and areas of concern within the organization.

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Question # 7

In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

A. Maintaining industry-specific knowledge appropriate to the organization.
B. Assessing how IT contributes to organization objectives, risks, and relevance to audit.
C. Maintaining technical aspects of accounting standards and reporting processes.
D. Understanding regulatory and legal framework and assessing its relevance.

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Question # 8

To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity. According to IIA guidance, which of the following statements is true regarding these circumstances?

A. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.
B. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.
C. The auditor should obtain the CAE's approval as to the nature and scope of the duties she is permitted to perform during her temporary assignment.
D. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.

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Question # 9

Which of the following are components of the ISO 31000 risk management process?1. Setting the context.2. Risk treatment.3. Risk avoidance.4. Communication.

A. 1 and 2 only.
B. 2 and 3.
C. 3 and 4.
D. 1,2, and 4.

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Question # 10

A chief audit executive (CAE) is reviewing the internal audit activity's performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity's quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

A. The overall effectiveness of the internal audit activity's periodic self assessments.
B. The type of audit productivity and performance statistics reported.
C. The adequacy of the day-to-day supervision and review process.
D. The scope and frequency of external assessments.

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Question # 11

According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?

A. When planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.
B. Internal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.
C. Internal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.
D. Both assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.

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Question # 12

Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?

A. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
B. The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.
C. The scope, findings, risks, recommendations, and agreed-upon improvement actions.
D. The number and types of people involved in the assessment, costs, and duration of the QAIP

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Question # 13

An internal auditor in a small broadcasting organization was assigned to review the revenue collection process. The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?

A. Bank statements.
B. Customer confirmation letters.
C. Copies of sales invoices.
D. Copies of deposit slips.

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Question # 14

According to the HA Code of Ethics, which of the following statements best describes the principle of competency? 

A. Internal auditors shall perform their work with honesty, diligence, and responsibility.
B. Internal auditors shall perform their work in accordance with the Standards.
C. Internal auditors shall perform their work in accordance with the law and make disclosures expected by the law.
D. Internal auditors shall be prudent in the use of information acquired while performing their work.

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Question # 15

Internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

A. Working conditions.
B. Employees' families.
C. Marketplace competition.
D. Shareholders and investors.

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Question # 16

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, Rotational assignments and familiarity of the internal audit activity
C. Employee incentives and self review of the internal audit activity.
D. Organizational positioning and scope control of the internal audit activity.

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Question # 17

Which of the following situations is most likely to impair internal audit objectivity? 

A. An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
B. An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
C. According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
D. An internal auditor performs an audit in a department that is led by the auditor's close friend.

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Question # 18

An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management. Which of the following correctly identifies the type of evidence this information represents?

A. Competent, corroborative evidence of future working capital requirements.
B. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
C. Competent, documentary evidence of future cash flow changes within the organization
D. Sufficient, circumstantial evidence of the future solvency of the organization.

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Question # 19

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement? 1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits. 2. The needs and expectation of clients, including the nature, timing, and communication of engagement results. 3. The application of technology-based audit and other data analysis techniques, where appropriate. 4. The relative complexity and extent of work needed to achieve the engagement's objectives.

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

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Question # 20

A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?

A. Communication.
B. Persuasion and collaboration
C. Business acumen
D. Governance, risk, and control.

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Question # 21

An auditor in charge was reviewing the workpapers submitted by a newly hired internal auditor. She noted that the new auditor's analytical work did not include any rating or quantification of the risk assessment results, and she returned the workpapers for correction. Which section of the workpapers will the new auditor need to modify?

A. Condition section.
B. Criteria section.
C. Effect section.
D. Cause section.

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Question # 22

According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising dueprofessional care?When auditing investments, the auditor identified instruments with which he was unfamiliar. He decided not toselect that type of investment in his sample, as he did not have the knowledge needed to 

A. perform a proper assessment.
B. An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor. 
C. An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager. 
D. An auditor in charge needed to have testing completed by the end of the month, but was behind schedule. He identified a junior auditor to conduct the work for him on a complex area of the organization.

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Question # 23

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. Consumers.
B. Activists.
C. Suppliers.
D. Investors.

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Question # 24

An internal audit team is performing an audit of workplace accident claims. Which of the following actions by the audit team-best demonstrates due professional care?

A. Having an occupational health officer on the engagement team.
B. Determining that the claims have been classified properly.
C. Placing reliance on medical reports from the injured worker's doctor.
D. Reviewing claims to ensure all accidents actually occurred in the workplace.

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Question # 25

While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?1. Ensure all tests use a random sampling technique.2. Consider a judgmental approach for the sample size.3. Assess testing errors through root cause analysis.4. Ensure that the entire data set is tested.

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

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Question # 26

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

A. Requesting a private meeting with senior management, without the presence of the chief audit executive.
B. Intervening during an audit involving ethical wrongdoing.
C. Discussing periodic reports of ethical breaches.
D. Authorizing an investigation of an unsafe product.

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Question # 27

Which of the following is a common type of payroll fraud? 

A. Unauthorized overtime.
B. Fictitious employees.
C. Unearned bonuses or commissions.
D. Skimming.

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Question # 28

Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?1. Appropriate levels of authority and responsibility.2. Supervision of staff and appropriate review of work.3. The seniority of management in the organization.4. The ability to trace each transaction to an accountable and responsible individual.

A. 1,2, and 3.
B. 1.2, and 4.
C. 1.3, and 4.
D. 2, 3, and 4

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