2021 IIA-CRMA dumps review - Professional Quiz Study Materials
IIA-CRMA Test Prep Training Practice Exam Questions Practice Tests
IIA IIA-CRMA Exam Syllabus Topics:
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NEW QUESTION 108
Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?
- A. Performance management.
- B. Internal audit delivery.
- C. Governance, risk, and control.
- D. Business acumen.
Answer: A
NEW QUESTION 109
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
- A. Surveys.
- B. Interviews.
- C. Workshops.
- D. Observation.
Answer: A
NEW QUESTION 110
Which of the following does not need to be defined in the internal audit charter?
- A. The scope of internal audit activities.
- B. Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.
- C. The internal audit activity's position within the organization.
- D. The audit engagements to be performed during the upcoming year.
Answer: D
NEW QUESTION 111
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 bad debt expense as a percentage of sales than that of previous years.
- C. A much higher percentage of past-due accounts receivable than that of other stores.
- D. A much higher bad debt expense as a percentage of sales than that of other stores.
Answer: D
NEW QUESTION 112
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, 2, and 4 only
- D. 1 and 4 only
Answer: C
NEW QUESTION 113
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. Organizational independence.
- B. Individual independence.
- C. Due professional care.
- D. Individual objectivity.
Answer: C
NEW QUESTION 114
A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?
- A. From acceptance to avoidance.
- B. From acceptance to reduction.
- C. From sharing to reduction.
- D. From sharing to avoidance.
Answer: C
NEW QUESTION 115
According to IIA guidance, when preparing the charter for the internal audit activity, the chief audit executive (CAE), board, and senior management should agree on which of the following?
1. The standards to be used by the internal audit activity.
2. The internal audit activity's code of ethics.
3. The CAE's reporting line.
4. The internal audit activity's responsibilities.
- A. 1 and 2 only.
- B. 1,2, and 3.
- C. 3 and 4.
- D. 4 only.
Answer: C
NEW QUESTION 116
According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?
- A. Two years.
- B. One year.
- C. Six months.
- D. Three months.
Answer: B
NEW QUESTION 117
In which of the following functions would fraud be most likely to occur?
- A. Maintaining custody of inventory records.
- B. Collecting payments on accounts.
- C. Approving changes to employee records.
- D. Preparing customer statements.
Answer: B
NEW QUESTION 118
According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?
- A. It is required to demonstrate that effective engagement supervision has occurred.
- B. It ensures that an appropriate chain of evidence is maintained through the workpapers.
- C. It increases the likelihood of obtaining the audit client's agreement with the results.
- D. It helps ensure that appropriate professional judgments and conclusions are made.
Answer: D
NEW QUESTION 119
An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?
- A. Stakeholders will have more assurance that the risks are assessed consistently.
- B. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
- C. Management will be able to reduce inherent risk because they will have a better understanding of risk.
- D. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
Answer: A
NEW QUESTION 120
An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter?
- A. The job specifications and descriptions of the internal audit staff.
- B. The IAA's right to have unrestricted access to functions, records, personnel, and physical property.
- C. A detailed audit plan or program for the year.
- D. The purpose of the IAA.
Answer: B
NEW QUESTION 121
An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management.
Which of the following correctly identifies the type of evidence this information represents?
- A. Sufficient, circumstantial evidence of the future solvency of the organization.
- B. Competent, corroborative evidence of future working capital requirements.
- C. Competent, documentary evidence of future cash flow changes within the organization.
- D. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
Answer: C
NEW QUESTION 122
Which of the following statements is true about The IIA Global Internal Audit Competency Framework?
- A. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
- B. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
- C. The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.
- D. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.
Answer: C
NEW QUESTION 123
According to IIA guidance, which of the following should be included in the internal audit charter?
- A. Assigned responsibilities for designing and implementing controls.
- B. Identification of the organizational units where engagements are to be performed.
- C. Organizational relationships and reporting lines.
- D. The minimum resources and competencies needed for the internal audit activity.
Answer: C
NEW QUESTION 124
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 125
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?
- A. Senior management.
- B. All employees.
- C. Internal audit activity.
- D. Board of directors.
Answer: D
NEW QUESTION 126
Which of the following is a second line of defense in effective risk management and control?
- A. Internal audit department.
- B. Purchasing department.
- C. Credit department.
- D. Compliance department.
Answer: D
NEW QUESTION 127
In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?
- A. Maintaining technical aspects of accounting standards and reporting processes.
- B. Assessing how IT contributes to organization objectives, risks, and relevance to audit.
- C. Understanding regulatory and legal framework and assessing its relevance.
- D. Maintaining industry-specific knowledge appropriate to the organization.
Answer: C
NEW QUESTION 128
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