2022 Valid IIA-CRMA Real Exam Questions (Updated) 100% Dumps & Practice Exam
[UPDATED 2022] IIA IIA-CRMA Questions Prepare with Free Demo of PDF
NEW QUESTION 96
Which of the following does not need to be defined in the internal audit charter?
- A. The audit engagements to be performed during the upcoming year.
- B. The scope of internal audit activities.
- C. Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.
- D. The internal audit activity's position within the organization.
Answer: A
NEW QUESTION 97
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?
- A. The audit committee and senior management.
- B. The audit committee and the external auditors.
- C. Senior management and management of the audited area.
- D. Senior management and the external auditors.
Answer: A
NEW QUESTION 98
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. Shareholders and investors.
- C. Working conditions.
- D. Employees' families.
Answer: D
NEW QUESTION 99
Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?
- A. The CAE initials and dates every working paper after it has been reviewed.
- B. The CAE prepares a memorandum discussing the results of the working paper review.
- C. The CAE utilizes an external third party to make an objective recommendation after each working paper review.
- D. The CAE completes an engagement working paper checklist.
Answer: C
NEW QUESTION 100
The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan.
Which of the following strategies best fulfills the requirements of the Standards regarding these audits?
- A. Store operations audits can be fully executed with appropriate disclosure to the board.
- B. The scope of store operations audits should exclude compliance.
- C. A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.
- D. Store operations audits should be performed by an external service provider.
Answer: D
NEW QUESTION 101
Which of the following actions best demonstrates that an internal auditor is exercising due professional care?
- A. The auditor recommends improvements for all of the organization's procedures and practices.
- B. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
- C. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.
- D. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.
Answer: B
NEW QUESTION 102
Which of the following best describes the assessment of risks?
- A. Assess the likelihood and/or impact of risk on the achievement of organizational objectives.
- B. Assess the amount of risk an organization can accept while pursuing its objectives.
- C. Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.
- D. Assess alternative strategies to reduce or eliminate major risks.
Answer: A
NEW QUESTION 103
According to IIA guidance, which of the following statements regarding the internal audit charter is true?
- A. Senior management should approve the charter before it is submitted to the board.
- B. The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.
- C. The CEO periodically should assess whether the terms of the charter continue to be adequate.
- D. The charter should define the consulting services that the internal audit activity is permitted to perform.
Answer: A
NEW QUESTION 104
Which of the following is not an objective of internal control?
- A. Validation.
- B. Accuracy.
- C. Compliance.
- D. Efficiency.
Answer: A
NEW QUESTION 105
An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?
- A. The division produced fewer items this year than in prior years.
- B. Cash or accounts receivable has decreased.
- C. The gross margin has decreased.
- D. The gross margin has increased.
Answer: B
NEW QUESTION 106
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?
- A. An independent third party has assessed the organization's system of internal controls to be adequate and effective.
- B. The internal audit charter is drafted properly and approved by the appropriate parties.
- C. The chief audit executive reports both functionally and administratively to the CEO.
- D. The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
Answer: C
NEW QUESTION 107
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 108
The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?
- A. Pressure or incentive.
- B. Rationalization.
- C. Commitment.
- D. Opportunity.
Answer: A
NEW QUESTION 109
An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?
- A. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.
- B. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.
- C. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
- D. Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
Answer: B
NEW QUESTION 110
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 111
An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?
1. Proficiency in analyzing key IT risks and controls.
2. The ability to recognize significant deviations from good business practices.
3. Knowledge of key indicators of fraud in tax reporting.
4. The ability to recognize the existence of problems related to tax accounting.
- A. 3 and 4 only.
- B. 1 and 4 only.
- C. 2, 3, and 4 only.
- D. 1,2, 3, and 4.
Answer: A
NEW QUESTION 112
Which of the following scenarios best illustrates the principle of due professional care?
- A. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.
- B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.
- C. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.
- D. An internal auditor evaluates the significant risks arising from a consulting engagement.
Answer: D
NEW QUESTION 113
Which of the following statements accurately describes an internal auditor's responsibility with regard to due professional care?
- A. An internal auditor should express an opinion only when consensus with top management has been achieved.
- B. An internal auditor's opinion should be based on factual evidence.
- C. An internal auditor's opinion should be limited to the effectiveness of internal controls.
- D. An internal auditor's opinion should be based on experience and free of all bias.
Answer: B
NEW QUESTION 114
Which of the following is an example of a transaction-level control?
- A. Inventory counts.
- B. Reconciliations of primary accounts.
- C. Human resource policies.
- D. Tone at the top.
Answer: B
NEW QUESTION 115
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