Updated Dec 02, 2021 IIA-CRMA Exam Dumps - PDF Questions and Testing Engine
New (2021) IIA IIA-CRMA Exam Dumps
NEW QUESTION 117
According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?
- A. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
- B. Internal auditors are responsible for ensuring that fraud does not occur.
- C. Internal auditors should take a leading role in investigating all fraud-related cases.
- D. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
Answer: D
NEW QUESTION 118
According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?
- A. The chief audit executive.
- B. Senior management.
- C. The external auditors.
- D. The board.
Answer: A
NEW QUESTION 119
Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?
1. Periodically reviewing the vendor list for unusual vendors and addresses.
2. Segregating duties for amount purchasing, receiving, shipping, and accounting.
3. Validating sequential integrity of purchase orders.
4. Verifying the validity of invoices with post office box addresses.
- A. 1, 2, 3, and 4
- B. 1, 2, and 4 only
- C. 1 and 2 only
- D. 3 and 4 only
Answer: D
NEW QUESTION 120
An 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. Marketplace competition.
- B. Employees' families.
- C. Working conditions.
- D. Shareholders and investors.
Answer: B
NEW QUESTION 121
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. The IIA's Code of Ethics.
- D. Internal audit charter.
Answer: D
NEW QUESTION 122
According to IIA guidance, which of the following statements regarding the internal audit charter is true?
- A. The CEO periodically should assess whether the terms of the charter continue to be adequate.
- B. The charter should define the consulting services that the internal audit activity is permitted to perform.
- C. Senior management should approve the charter before it is submitted to the board.
- D. The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.
Answer: C
NEW QUESTION 123
According to IIA guidance, which of the following should be formally documented in the internal audit charter?
- A. The internal audit activity's responsibility for the organization's governance framework.
- B. The internal audit activity's responsibility for imposing risk management processes.
- C. The budgeting process for the internal audit activity.
- D. The nature of consulting services provided by the internal audit activity.
Answer: D
NEW QUESTION 124
Which of the following actions should an internal auditor take to exercise due professional care?
1. Consider the probability of significant noncompliance in each audit engagement.
2. Weigh the cost of assurance against the benefits.
3. Perform assurance procedures with sufficient care to ensure that all risks are identified.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1, 2, and 3
- D. 1 and 3 only
Answer: A
NEW QUESTION 125
According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?
- A. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.
- B. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.
- C. Providing personal tax preparation services for a fee for several employees during the lunch hour.
- D. Accepting a consulting request in the IT department without possessing the requisite experience.
Answer: B
NEW QUESTION 126
Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?
- A. Insist that customers only pay in a stable currency.
- B. Maintain a large foreign currency balance.
- C. Implement a hedging strategy.
- D. Hire a risk consultant.
Answer: C
NEW QUESTION 127
A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?
- A. Control activities.
- B. Information and communication.
- C. Control environment.
- D. Monitoring activities.
Answer: C
NEW QUESTION 128
Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
- A. Which fields to examine on each invoice.
- B. Which sampling methodology to select for testing.
- C. What level of noncompliance is acceptable.
- D. Whether an individual expenditure is allowable.
Answer: C
NEW QUESTION 129
An internal auditor is conducting an engagement in the accounts payable department, which includes expressing an opinion at the micro level. According to IIA guidance, which of the following statements is true regarding micro-level opinions?
1. They are most effective when using a combination of current and prior engagement findings to draw conclusions.
2. They typically are based on defined procedures such as those found in an accounts payable reconciliation process.
3. They are discrete and not normally shared with senior management or the board.
4. They can rely on evidence taken from the work of other assurance activities across the organization.
- A. 1 and 3.
- B. 2 and 3.
- C. 1 and 2.
- D. 3 and 4.
Answer: B
NEW QUESTION 130
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 higher than or equal to the risk appetite.
- B. The inherent risk is higher than or equal to the risk tolerance.
- C. The inherent risk is lower than or equal to the risk tolerance.
- D. The residual risk is lower than or equal to the risk appetite.
Answer: D
NEW QUESTION 131
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. 1, 2, and 4 only
- B. 2, 3, and 4 only
- C. 1 and 2 only
- D. 1, 2, and 3 only
Answer: A
NEW QUESTION 132
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. Reviewing claims to ensure all accidents actually occurred in the workplace.
- C. Determining that the claims have been classified properly.
- D. Placing reliance on medical reports from the injured worker's doctor.
Answer: A
NEW QUESTION 133
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. Select a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.
- 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. Disclose the deficiency, and request that the investigation be reassigned to the first line of defense.
Answer: B
NEW QUESTION 134
An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?
- A. Nonstatistical sampling only
- B. Neither approach to testing the audit theory would be cost effective.
- C. A combination of both statistical and nonstatistical sampling.
- D. Statistical sampling only
Answer: A
NEW QUESTION 135
Which of the following is most likely to function as a directive control?
- A. Insurance claims.
- B. Cycle counts.
- C. Security dogs.
- D. Alert employees.
Answer: D
NEW QUESTION 136
When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?
1. Include copies of all client files that were reviewed for the audit.
2. Avoid the use of professional, industry-appropriate jargon and technical terms.
3. Indicate the original sources of all data and information used in the workpapers.
4. Leave blank space for cross-references to be completed during the post-audit process.
- A. 2 and 3 only
- B. 1 and 2 only
- C. 1 and 4 only
- D. 3 and 4 only
Answer: A
NEW QUESTION 137
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 independence.
- B. Due professional care.
- C. Organizational independence.
- D. Individual objectivity.
Answer: B
NEW QUESTION 138
An internal audit charter should do which of the following?
- A. Communicate the internal audit activity's goals.
- B. Establish the size of the internal audit activity.
- C. Define the scope of internal audit activities.
- D. Outline the schedule of future audits.
Answer: C
NEW QUESTION 139
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?
- A. Delegate authority to members of senior management.
- B. Determine the organization's overall risk appetite.
- C. Identify key stakeholders and their expectations.
- D. Establish a governance committee.
Answer: C
NEW QUESTION 140
The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?
- A. Due professional care.
- B. Employment of tools and techniques.
- C. Engagement supervision.
- D. Demonstrated compliance with procedures.
Answer: C
NEW QUESTION 141
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