[Dec-2021] IIA IIA-CRMA Official Cert Guide PDF
Exam IIA-CRMA: Certification in Risk Management Assurance (CRMA) Exam - iPassleader
IIA IIA-CRMA Exam Syllabus Topics:
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NEW QUESTION 48
An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?
- A. A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.
- B. A log that includes titles of conferences that all employees were invited to attend in the last year, along with the dates of those conferences and average costs per traveler.
- C. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.
- D. A log of conferences titles, dates of travel for each employee, and a detailed summary of conference objectives and how they relate to the organization's mission needs.
Answer: A
NEW QUESTION 49
Which of the following factors have the greatest influence on the independence of the internal audit activity?
- A. Quality assessments and cultural biases of the internal audit activity.
- B. Organizational positioning and scope control of the internal audit activity.
- C. Employee incentives and self review of the internal audit activity.
- D. Rotational assignments and familiarity of the internal audit activity.
Answer: B
NEW QUESTION 50
Which of the following would be considered a violation of The IIA's mandatory guidance on independence?
- A. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE.
- B. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.
- C. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.
- D. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.
Answer: A
NEW QUESTION 51
An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?
- A. Management allows the product division to remain unchanged.
- B. Management modifies the product division to minimize errors.
- C. Management sells the product division to a competitor.
- D. Management outsources the product division to a third party.
Answer: B
NEW QUESTION 52
Which of the following controls is not appropriate for sales in a manufacturing organization?
- A. Goods shipped are matched with valid customer orders.
- B. Goods returned are inspected for damage by the receiving department for proper disposition.
- C. Sales department approval is required for credit sales transactions.
- D. Customers' orders are recorded promptly.
Answer: C
NEW QUESTION 53
According to IIA guidance, which of the following statements about working papers is false?
- A. They provide support for communication to third parties.
- B. They contribute to development of the internal audit staff.
- C. They assist in the implementation of recommendations.
- D. They demonstrate compliance with auditing standards.
Answer: C
NEW QUESTION 54
Which of the following is an example of collusion?
- A. A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.
- B. An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.
- C. An employee works with the IT manager to develop a program for identifying duplicate invoice payments.
- D. A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.
Answer: D
NEW QUESTION 55
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 and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.
- B. The number and types of people involved in the assessment, costs, and duration of the QAIP
- C. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
- D. The scope, findings, risks, recommendations, and agreed-upon improvement actions.
Answer: D
NEW QUESTION 56
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
- A. Interrogating a suspected fraudster.
- B. Completing a process review to improve controls to prevent fraud.
- C. Employing audit tests to detect fraud.
- D. Planning an engagement of the area in which fraud is suspected.
Answer: C
NEW QUESTION 57
An assurance mapping exercise helps an organization do which of the following?
1. Provide assurance to stakeholders that risks are managed and reported, and regulatory and legal obligations are met.
2. Fulfill best practices in the industry.
3. Identify and address any gaps in the risk management process.
4. Identify fraud.
- A. 1 and 3.
- B. 1 and 4.
- C. 2 and 3.
- D. 3 and 4.
Answer: A
NEW QUESTION 58
According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?
- A. Internal auditors should take a leading role in investigating all fraud-related cases.
- B. Internal auditors are responsible for ensuring that fraud does not occur.
- C. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
- D. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
Answer: C
NEW QUESTION 59
An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor's suspicion?
- A. A much higher percentage of past-due accounts receivable than that of previous years.
- B. A much higher percentage of past-due accounts receivable than that of other stores.
- C. A much higher bad debt expense as a percentage of sales than that of previous years.
- D. A much higher bad debt expense as a percentage of sales than that of other stores.
Answer: D
NEW QUESTION 60
Which of the following are core responsibilities to be included in the internal audit charter?
1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
2. Determine the adequacy and effectiveness of the organization's systems of internal accounting and operating controls.
3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.
4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.
- A. 2 and 4.
- B. 1 and 4.
- C. 2 and 3.
- D. 1 and 2.
Answer: D
NEW QUESTION 61
Which of the following best describes the assessment of risks?
- A. Assess the amount of risk an organization can accept while pursuing its objectives.
- 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 actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.
Answer: B
NEW QUESTION 62
According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?
- A. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.
- B. The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.
- C. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
- D. The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.
Answer: C
NEW QUESTION 63
While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?
- A. Engagement supervision.
- B. Due professional care.
- C. Resource management.
- D. Coordination.
Answer: B
NEW QUESTION 64
Which of the following situations is most likely to impair internal audit objectivity?
- A. An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
- B. An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
- C. According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
- D. An internal auditor performs an audit in a department that is led by the auditor's close friend.
Answer: D
NEW QUESTION 65
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 3.
- B. 2 and 3.
- C. 1 and 2.
- D. 3 and 4.
Answer: A
NEW QUESTION 66
According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?
- A. To facilitate the conduct of risk assessment.
- B. To achieve and maintain sustainable development.
- C. To enable Triple Bottom Line reporting capability.
- D. To fulfill regulatory and compliance requirements.
Answer: B
NEW QUESTION 67
Which of the following statements describes impairment to the internal auditor's objectivity?
- A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
- B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.
- C. An internal auditor receives a promotional gift that is available to the organization's employees.
- D. An internal auditor performs an assessment of the operations for which he was recently responsible.
Answer: D
NEW QUESTION 68
Which of the following are components of the ISO 31000 risk management process?
1. Setting the context.
2. Risk treatment.
3. Risk avoidance.
4. Communication.
- A. 1 and 2 only.
- B. 2 and 3.
- C. 1,2, and 4.
- D. 3 and 4.
Answer: A
NEW QUESTION 69
According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?
1. Identification.
2. Mitigation.
3. Remediation.
4. Reduction.
- A. 1 and 4 only.
- B. 1,2, 3, and 4.
- C. 1, 3, and 4 only.
- D. 1 only. |
Answer: A
NEW QUESTION 70
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 2 only
- C. 1 and 4 only
- D. 3 and 4 only
Answer: B
NEW QUESTION 71
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 reports to the board regarding audit staff performance evaluation and compensation.
- B. CAE meets privately with The board at least annually.
- C. CAE reviews and approves the annual audit plan.
- D. CAE meets privately with The CEO at least annually.
Answer: A
NEW QUESTION 72
Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?
- A. The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.
- B. The audit manager conducts an internal quality assessment of the internal audit activity's adherence to the Standards.
- C. The board approves the annual performance evaluation of the chief audit executive.
- D. The internal auditor reviews the physical access to merchandise during an inventory count.
Answer: D
NEW QUESTION 73
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