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IIA-CRMA - Certification in Risk Management Assurance (CRMA) Exam Practice Tests 2021 | Free4Torrent
NEW QUESTION 25
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 3.
- B. 1 and 4.
- C. 2 and 4.
- D. 2 and 3.
Answer: C
NEW QUESTION 26
Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?
1. Reappraising risks levels.
2. Providing accurate information to management.
3. Marketing the internal audit activity.
4. Planning safeguards for assets in high-risk areas.
- A. 1 and 2.
- B. 2 and 3.
- C. 3 and 4.
- D. 1 and 3.
Answer: D
NEW QUESTION 27
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. Performing a pre-implementation review of the company's payroll application.
- B. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.
- C. Preparing the financial statements for the company's defined contribution plan.
- D. Providing the COBIT framework as a possible IT management tool.
Answer: C
NEW QUESTION 28
A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?
- A. Assign one experienced manager to better coordinate staff training and development activities.
- B. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.
- C. Require that all staff obtain a minimum of two relevant audit certifications.
- D. Engage a consultant to benchmark the IAA's training program against its peers.
Answer: B
NEW QUESTION 29
Which of the following is the primary engagement responsibility of an entry-level internal auditor?
- A. Analysis.
- B. Reporting.
- C. Documentation.
- D. Leadership.
Answer: A
NEW QUESTION 30
The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?
- A. Workpapers may be amended during the review process.
- B. Review notes of questions that arise during the review process must be retained.
- C. Workpaper review allows for staff training and development.
- D. Dating and initialing each workpaper provides evidence of review.
Answer: B
NEW QUESTION 31
Which of the following types of fraud includes embezzlement?
- A. Bribery.
- B. Fraudulent statements.
- C. Corruption.
- D. Misappropriation of assets.
Answer: D
NEW QUESTION 32
The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?
- A. The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.
- B. The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.
- C. The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.
- D. The CAE should seek sufficient funding to increase audit resources to meet the minimum requirements of the Standards.
Answer: C
NEW QUESTION 33
The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?
- A. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.
- B. The assigned internal auditor must maintain objectivity while performing the engagement.
- C. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.
- D. The assigned internal auditor must not assume management responsibilities while performing the engagement.
Answer: C
NEW QUESTION 34
Click the Exhibit.
Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?
- A. Neither A nor B.
- B. Graph B only
- C. Both A and B.
- D. Graph A only
Answer: C
NEW QUESTION 35
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. Internal control checklist.
- B. Cross-functional flow chart.
- C. Procurement employee survey.
- D. Segregation of duties matrix.
Answer: B
NEW QUESTION 36
According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?
- A. CAE meets privately with The board at least annually.
- B. CAE reports to the board regarding audit staff performance evaluation and compensation.
- C. CAE reviews and approves the annual audit plan.
- D. CAE meets privately with The CEO at least annually.
Answer: B
NEW QUESTION 37
According to IIA guidance, which of the following should be included in the internal audit charter?
- A. The minimum resources and competencies needed for the internal audit activity.
- B. Identification of the organizational units where engagements are to be performed.
- C. Organizational relationships and reporting lines.
- D. Assigned responsibilities for designing and implementing controls.
Answer: C
NEW QUESTION 38
Which of the following is a second line of defense in effective risk management and control?
- A. Credit department.
- B. Purchasing department.
- C. Compliance department.
- D. Internal audit department.
Answer: C
NEW QUESTION 39
Which of the following is considered a violation of The IIA's Code of Ethics?
- A. An auditor reports material deficiencies, despite the fact that management is already aware of the defects.
- B. An auditor conveys public information about an organization's financial condition.
- C. An auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.
- D. An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.
Answer: D
NEW QUESTION 40
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, findings, risks, recommendations, and agreed-upon improvement actions.
- B. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
- C. The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.
- D. The number and types of people involved in the assessment, costs, and duration of the QAIP
Answer: A
NEW QUESTION 41
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
- A. Surveys.
- B. Interviews.
- C. Workshops.
- D. Observation.
Answer: A
NEW QUESTION 42
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. Information and communication.
- D. Control activities.
Answer: D
NEW QUESTION 43
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 amount of risk an organization can accept while pursuing its objectives.
- C. Assess alternative strategies to reduce or eliminate major risks.
- D. Assess the likelihood and/or impact of risk on the achievement of organizational objectives.
Answer: D
NEW QUESTION 44
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. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.
- B. 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.
- C. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.
- D. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.
Answer: B
NEW QUESTION 45
Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
- A. What level of noncompliance is acceptable.
- B. Which fields to examine on each invoice.
- C. Which sampling methodology to select for testing.
- D. Whether an individual expenditure is allowable.
Answer: A
NEW QUESTION 46
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