PracticeMaterial IIA-CRMA Real Exam Question Answers Updated [Jan 15, 2024]
Easily To Pass New IIA IIA-CRMA Dumps with 285 Questions
IIA-CRMA certification exam consists of 125 multiple choice questions and must be completed within three hours. IIA-CRMA exam is administered by Pearson VUE, a leading provider of computer-based testing services. IIA-CRMA exam is available in multiple languages and can be taken at any Pearson VUE testing center around the world.
NEW QUESTION # 29
According to the COSO enterprise risk management framework, which of the following best describes the activity that helps ensure risk responses are carried out effectively?
- A. Objective setting.
- B. Event identification.
- C. Control activities.
- D. Information and communication.
Answer: C
NEW QUESTION # 30
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
- A. Analytical review.
- B. Observation.
- C. Document verification.
- D. Inquiry.
Answer: A
NEW QUESTION # 31
Which of the following is an activity that an internal auditor must not perform?
- A. Establish and provide continuing assurance on an anti-money laundering program for new hires.
- B. Provide assurance for the effectiveness of anti-money laundering training.
- C. Survey employees for their understanding of anti-money laundering practices.
- D. Assess the risk of being fined for ineffective anti-money laundering practices.
Answer: A
NEW QUESTION # 32
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. According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
- C. An internal auditor performs an audit in a department that is led by the auditor's close friend.
- D. An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
Answer: C
NEW QUESTION # 33
Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?
- A. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.
- B. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
- C. Management may be concerned about its reputation in the financial markets.
- D. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.
Answer: D
NEW QUESTION # 34
According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.
- A. 1 and 4 only
- B. 2 and 3 only
- C. 1, 2, and 3 only
- D. 1, 2, 3, and 4
Answer: C
NEW QUESTION # 35
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. Competence.
- B. Flexibility.
- C. Independence.
- D. Objectivity.
Answer: D
NEW QUESTION # 36
Which of the following is an example of a management control technique?
- A. A budget.
- B. The board of directors.
- C. The control environment.
- D. A risk assessment.
Answer: A
NEW QUESTION # 37
According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?
1. Obtain and review all purchasing-related audit reports issued within the past year.
2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.
3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.
4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.
- A. 1 and 3.
- B. 2 and 4.
- C. 3 and 4.
- D. 1 and 2.
Answer: D
NEW QUESTION # 38
According to The IIA's Code of Ethics, which of the following is true?
- A. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
- B. Integrity requires that auditors perform internal audit services in accordance with the Standards.
- C. Confidentiality requires that auditors be prudent in the use and protection of client information.
- D. Confidentiality requires that auditors disclose all material facts known to them.
Answer: C
NEW QUESTION # 39
Which of the following is an example of a transaction-level control?
- A. Reconciliations of primary accounts.
- B. Human resource policies.
- C. Inventory counts.
- D. Tone at the top.
Answer: A
NEW QUESTION # 40
Which of the following is not an appropriate activity for internal auditors to perform?
- A. Accumulate data, obtain varying views, and report information to senior management.
- B. Recommend management seek a consulting firm to advise on outsourcing.
- C. Implement solutions for specific organizational problems.
- D. Highlight matters that require management's attention.
Answer: C
NEW QUESTION # 41
Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?
- A. It considers tolerable deviation rate more effectively than does statistical sampling.
- B. Non-statistical sample results must be projected to the population.
- C. Lesser evidence is required to support a conclusion than for statistical sampling.
- D. Sampling risk will be accurately quantified through non-statistical sampling.
Answer: B
NEW QUESTION # 42
When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:
- A. Obtain information based on the person's own perspective.
- B. Gather factual data on several different topics.
- C. Determine agreement or disagreement with a stated viewpoint.
- D. Obtain specific answers and maximize efficiency.
Answer: A
NEW QUESTION # 43
Which of the following risk management activities is most appropriate for an internal auditor to undertake?
- A. Coordinate risk management activities.
- B. Review the management of key risks.
- C. Implement risk responses on management's behalf.
- D. Impose risk management processes.
Answer: B
NEW QUESTION # 44
According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?
- A. Accepting a consulting request in the IT department without possessing the requisite experience.
- B. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.
- C. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.
- D. Providing personal tax preparation services for a fee for several employees during the lunch hour.
Answer: C
NEW QUESTION # 45
What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?
- A. To help improve the overall quality of the internal audit activity's work.
- B. To identify inefficiencies within the internal audit team.
- C. To help the internal audit activity complete its annual assurance plan.
- D. To identify key risks and areas of concern within the organization.
Answer: A
NEW QUESTION # 46
According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?
- A. Internal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.
- B. Internal assessments must be performed at least once every five years by a qualified assessor.
- C. Follow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.
- D. An internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.
Answer: D
NEW QUESTION # 47
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. 1 and 3.
- C. 2 and 3.
- D. 2 and 4.
Answer: D
NEW QUESTION # 48
According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?
When auditing investments, the auditor identified instruments with which he was unfamiliar.
- A. 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.
- B. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to perform a proper assessment.
- C. 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.
- D. 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.
Answer: B
NEW QUESTION # 49
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. 4 and 5 only.
- B. 1.2, and 3 only.
- C. 1.2. 4. and 5 only.
- D. 2. 3. 4. and 5 only.
Answer: C
NEW QUESTION # 50
A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?
- A. Individual objectivity.
- B. Individual independence.
- C. Due professional care.
- D. Organizational independence.
Answer: C
NEW QUESTION # 51
When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?
- A. The amount of risk that an organization is willing to seek or accept.
- B. The exposure to risks following management's risk responses.
- C. The extent and degree of interdependency for identified key risks.
- D. The boundaries established to manage the amount of risk taken.
Answer: B
NEW QUESTION # 52
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