[Aug-2022] IIA-CRMA Certification with Actual Questions from Free4Torrent
Updated IIA-CRMA Dumps PDF - IIA-CRMA Real Valid Brain Dumps With 285 Questions!
What are the Prerequisites for the IIA-CRMA Exam?
To take the exam, you must have an active IIA membership and active CIA designation. Your membership must have been verified with your name, membership number, email address, last three digits of your social security number, and confirmation of your date of birth. Eligibility also includes the requirement that the candidate should have equivalent to 5 years of internal audit and/or risk management experience.
NEW QUESTION 108
Which of the following statements is true regarding assurance services provided to clients outside of the organization?
- A. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
- B. The nature of assurance services for outside clients should be defined in the internal audit charter.
- C. Assurance services for outside clients are not covered under the internal audit charter.
- D. The nature of assurance services for outside clients is the same as for internal clients.
Answer: B
NEW QUESTION 109
The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?
- A. Segregation of duties matrix.
- B. Procurement employee survey.
- C. Internal control checklist.
- D. Cross-functional flow chart.
Answer: D
NEW QUESTION 110
With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?
- A. Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization's risk appetite.
- B. Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.
- C. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks.
- D. Evaluate the organization's governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization's risk appetite.
Answer: C
NEW QUESTION 111
Which of the following is a valid statement about the use of visual observations during an audit engagement?
1. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.
2. Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement.
3. Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.
4. Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization's senior management.
- A. 2 and 3 only
- B. 1 and 4 only
- C. 1 and 2 only
- D. 3 and 4 only
Answer: C
NEW QUESTION 112
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?
- A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
- B. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.
- C. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
- D. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
Answer: A
NEW QUESTION 113
Which two of the following are preventive controls in a check disbursement process?
1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.
2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.
3. An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.
4. Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.
- A. 2 and 4.
- B. 1 and 3.
- C. 2 and 3.
- D. 1 and 4.
Answer: A
NEW QUESTION 114
According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?
- A. The cost of providing the assurance services in relation to potential benefits.
- B. The relative complexity, materiality, or significance of matters to which assurance procedures are applied.
- C. The probability of significant errors, irregularities or instances of noncompliance.
- D. The extent of assurance services necessary to ensure that all risks are identified.
Answer: D
NEW QUESTION 115
Which of the following actions best demonstrates that an internal auditor is exercising due professional care?
- A. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.
- B. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.
- C. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
- D. The auditor recommends improvements for all of the organization's procedures and practices.
Answer: C
NEW QUESTION 116
The security department uncovered what appears to be a complex fraud in the accounting department. The CEO has requested the internal audit activity to investigate the fraud. If the internal audit staff lacks the expertise to conduct the investigation, how should the chief audit executive proceed?
- A. Disclose the deficiency, and request that the investigation be reassigned to the first line of defense.
- B. Outsource the sensitive investigation to a third-party consultant with fraud expertise.
- C. Proceed with the investigation, as internal auditors are not required to have fraud expertise.
- D. Select a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.
Answer: B
NEW QUESTION 117
What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?
- A. To identify inefficiencies within the internal audit team.
- B. To identify key risks and areas of concern within the organization.
- C. To help the internal audit activity complete its annual assurance plan.
- D. To help improve the overall quality of the internal audit activity's work.
Answer: D
NEW QUESTION 118
Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?
- A. Questioning of facility management, including the facility safety officer.
- B. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
- C. Review of records involving safety violations, filed by facility production employees.
- D. Observation of the facility during operations.
Answer: D
NEW QUESTION 119
According to the HA Code of Ethics, which of the following statements best describes the principle of competency?
- A. Internal auditors shall be prudent in the use of information acquired while performing their work.
- B. Internal auditors shall perform their work with honesty, diligence, and responsibility.
- C. Internal auditors shall perform their work in accordance with the Standards.
- D. Internal auditors shall perform their work in accordance with the law and make disclosures expected by the law.
Answer: C
NEW QUESTION 120
Which of the following is the best way to detect fraud?
- A. Implement process controls.
- B. Perform background investigations.
- C. Conduct anti-fraud training.
- D. Activate a whistleblower hotline.
Answer: D
NEW QUESTION 121
While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer's account number was not found in the customer master file. In this scenario, which of the following controls was lacking?
- A. Corrective control.
- B. Preventive control.
- C. Directive control.
- D. Detective control.
Answer: A
NEW QUESTION 122
Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?
- A. Encourage the CAE to communicate and coordinate with the external auditor.
- B. Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).
- C. Assist the CAE with hiring objective and competent internal audit staff.
- D. Approve the annual budget and resource plan for the internal audit activity.
Answer: B
NEW QUESTION 123
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. 3 and 4.
- B. 2 and 4.
- C. 1 and 3.
- D. 1 and 2.
Answer: D
NEW QUESTION 124
In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?
- A. Understanding regulatory and legal framework and assessing its relevance.
- B. Maintaining industry-specific knowledge appropriate to the organization.
- C. Assessing how IT contributes to organization objectives, risks, and relevance to audit.
- D. Maintaining technical aspects of accounting standards and reporting processes.
Answer: A
NEW QUESTION 125
Which of the following best describes the assessment of risks?
- A. Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.
- B. Assess the likelihood and/or impact of risk on the achievement of organizational objectives.
- C. Assess alternative strategies to reduce or eliminate major risks.
- D. Assess the amount of risk an organization can accept while pursuing its objectives.
Answer: B
NEW QUESTION 126
Why is a code of ethics for the internal audit profession necessary?
- A. It guides internal auditors in their service to others.
- B. It requires auditors to exhibit loyalty to their organizations.
- C. It provides auditors with protection from lawsuits.
- D. It ensures that all members of the profession possess the same level of competence.
Answer: A
NEW QUESTION 127
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