IIA Certification in Risk Management Assurance - IIA-CRMA-ADV FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

A. Higher operating margin. B. Lower obsolete stock disposal. C. Higher inventory turnover. D. Lower sales volume.

Discussion 0

Correct Answer: D Vote an answer

Question 2

According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

A. Senior management and management of the audited area. B. The audit committee and the external auditors. C. Senior management and the external auditors. D. The audit committee and senior management.

Discussion 0

Correct Answer: D Vote an answer

Question 3

Who is responsible for setting the risk appetite?

A. External auditors. B. Board of directors. C. Chief risk officer. D. Operations management.

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Correct Answer: B Vote an answer

Question 4

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. Engage a consultant to benchmark the IAA's training program against its peers. B. Assign one experienced manager to better coordinate staff training and development activities. C. Require that all staff obtain a minimum of two relevant audit certifications. D. Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

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Correct Answer: D Vote an answer

Question 5

According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?

A. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis. B. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor. C. Accepting a consulting request in the IT department without possessing the requisite experience. D. Providing personal tax preparation services for a fee for several employees during the lunch hour.

Discussion 0

Correct Answer: A Vote an answer

Question 6

Which of the following conditions is the most likely indicator of fraud?

A. Lower earnings occur during the industry's down cycle. B. Commissions are paid based on verified increases to sales. C. A manager regularly assumes subordinates' duties. D. Departmental reports are consistently issued in an untimely manner.

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Correct Answer: C Vote an answer

Question 7

Which segregation of duties would best reduce the risk of payroll fraud?

A. Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee's bank account. B. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees. C. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account. D. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

Discussion 0

Correct Answer: C Vote an answer

Question 8

What is the primary purpose of a fishbone diagram?

A. To identify the possible causes of adverse conditions. B. To depict the areas of responsibility for departments in an organization. C. To plan and control complex projects, such as internal audits. D. To represent the frequencies of adverse conditions in a given process.

Discussion 0

Correct Answer: A Vote an answer

Question 9

Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management's competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.

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

Discussion 0

Correct Answer: D Vote an answer

Question 10

Which of the following statements accurately describes an internal auditor's responsibility with regard to due professional care?

A. An internal auditor's opinion should be limited to the effectiveness of internal controls. B. An internal auditor should express an opinion only when consensus with top management has been achieved. C. An internal auditor's opinion should be based on factual evidence. D. An internal auditor's opinion should be based on experience and free of all bias.

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Correct Answer: C Vote an answer

Question 11

The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?
1. Average client customer satisfaction score for a given year.
2. Client survey comments on how to improve the IAA.
3. Auditor interviews once an audit has been completed.
4. Percentage of audits completed within 90 days.

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

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Correct Answer: B Vote an answer

Question 12

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. Independence. B. Competence. C. Flexibility. D. Objectivity.

Discussion 0

Correct Answer: D Vote an answer

Question 13

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

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Correct Answer: D Vote an answer

Question 14

A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities. According to MA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

A. Determine why The fraud was not detected earlier and design controls to strengthen early detection. B. Plan employee sessions and team building strategies for the organization to improve awareness of fraud among employees. C. Review the investigation and implement any improvements to the process. D. Conduct lessons learned sessions to ascertain how the fraud occurred and which controls failed.

Discussion 0

Correct Answer: D Vote an answer