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Best QualityIIA-CRMA Exam Questions IIA Test To Gain Brilliante Result
NEW QUESTION 103
Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?
- A. Because management requires the review to measure effectiveness of the internal audit activity.
- B. So that there is assurance of the internal audit staff's proficiency to complete audit activities.
- C. So that the individual objectivity of the internal audit staff can be more clearly established.
- D. Because changes in the organization may impair the internal audit activity's ability to meet its objectives.
Answer: D
NEW QUESTION 104
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 in accordance with the law and make disclosures expected by the law.
- C. Internal auditors shall perform their work in accordance with the Standards.
- D. Internal auditors shall perform their work with honesty, diligence, and responsibility.
Answer: C
NEW QUESTION 105
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 works with the IT manager to develop a program for identifying duplicate invoice payments.
- C. An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.
- D. A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.
Answer: D
NEW QUESTION 106
Which of the following is most likely to be considered a control weakness?
- A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
- B. Buyers promptly update the official vendor listing as new supplier sources become known.
- C. Department managers initiate purchase requests that must be approved by the plant superintendent.
- D. Purchase orders are typed by the purchasing department using prenumbered forms.
Answer: B
NEW QUESTION 107
According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)?
- A. A former employee knowledgeable of the IAA who resigned three years earlier from the organization.
- B. An employee in an affiliated organization who has never worked directly with the IAA.
- C. An employee in the parent organization who has not had any previous contact with the IAA.
- D. A competent employee of an independent external organization that provides co-sourcing services to the IAA.
Answer: A
NEW QUESTION 108
Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?
- A. After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
- B. The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.
- C. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
- D. The auditor tested samples of transactions to test the cash function's process flows.
Answer: A
NEW QUESTION 109
According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?
- A. Fundamentals of accounting, economics, and finance.
- B. Internal audit standards, procedures, and techniques.
- C. Management principles.
- D. Computerized information systems.
Answer: B
NEW QUESTION 110
According to The IIA's Code of Ethics, which of the following statements is true?
- A. When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.
- B. When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.
- C. When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.
- D. When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.
Answer: C
NEW QUESTION 111
Which of the following statements accurately describes the responsibility of the internal audit activity regarding IT governance?
1. The internal audit activity does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2. The internal audit activity must assess whether the IT governance of the organization supports the organization's strategies and objectives.
3. The internal audit activity may assess whether the IT governance of the organization supports the organization's strategies and objectives.
4. The internal audit activity may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.
- A. 2 and 4.
- B. 1 only.
- C. 4 only.
- D. 3 and 4.
Answer: B
NEW QUESTION 112
During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.
The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization.
Division management views the employee's actions as extra incentive to retain the employee.
A decision to include the employee's action in the engagement final communication would be:
1. A violation of the IIA Code of Ethics.
2. A violation of the reporting requirements in the Standards.
3. Justified and necessary, according to the IIA Code of Ethics and Standards.
- A. 3 only
- B. 1 only
- C. 2 only
- D. 1 and 2 only
Answer: A
NEW QUESTION 113
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. Conduct lessons learned sessions to ascertain how the fraud occurred and which controls failed.
- 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. Determine why The fraud was not detected earlier and design controls to strengthen early detection.
Answer: A
NEW QUESTION 114
Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred.
According to the Standards, which of the following principles did the CAE violate?
- A. Proficiency.
- B. Individual objectivity.
- C. Organizational independence.
- D. Due professional care.
Answer: D
NEW QUESTION 115
Which of the following controls is not appropriate for sales in a manufacturing organization?
- A. Sales department approval is required for credit sales transactions.
- B. Customers' orders are recorded promptly.
- C. Goods returned are inspected for damage by the receiving department for proper disposition.
- D. Goods shipped are matched with valid customer orders.
Answer: A
NEW QUESTION 116
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. Employing audit tests to detect fraud.
- C. Completing a process review to improve controls to prevent fraud.
- D. Planning an engagement of the area in which fraud is suspected.
Answer: B
NEW QUESTION 117
The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?
- A. "Compliant with all domestic and international legal statutes, and certified quality assured for ten years."
- B. "Conforms with the International Standards for the Professional Practice of Internal Auditing."
- C. "Completed with the advance certification of the External Assessors Association for Auditing Review."
- D. "Certified 100% accuracy, per the International Standards of External Assessment."
Answer: B
NEW QUESTION 118
Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.
- A. 3 and 4 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION 119
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 120
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