CRMA Certification IIA-CRMA-ADV Dumps Full Questions with Free PDF Questions to Pass
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NEW QUESTION # 120
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 internal auditor reviews the physical access to merchandise during an inventory count.
- 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 audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.
Answer: A
NEW QUESTION # 121
According to The IIA's Code of Ethics, which of the following statements is true?
- A. When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.
- 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 continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.
Answer: C
NEW QUESTION # 122
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. Management will be able to reduce inherent risk because they will have a better understanding of risk.
- B. Stakeholders will have more assurance that the risks are assessed consistently.
- C. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
- D. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
Answer: B
NEW QUESTION # 123
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. Due professional care.
- B. Proficiency.
- C. Individual objectivity.
- D. Organizational independence.
Answer: A
NEW QUESTION # 124
A large trucking organization wants to reduce traffic accidents by improving its system of internal controls.
Which of the following controls is correctly classified?
1. Review of speeding violations to identify repetitive locations and drivers is an example of a preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.
- A. 1 and 2.
- B. 3 and 4.
- C. 1 and 4.
- D. 2 and 3.
Answer: A
NEW QUESTION # 125
Which of the following is an example of a transaction-level control?
- A. Human resource policies.
- B. Tone at the top.
- C. Reconciliations of primary accounts.
- D. Inventory counts.
Answer: C
NEW QUESTION # 126
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, documentary evidence of future cash flow changes within the organization.
- C. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
- D. Competent, corroborative evidence of future working capital requirements.
Answer: B
NEW QUESTION # 127
Non-statistical sampling does not require which of the following?
- A. A smaller sample size than if selected using statistical sampling.
- B. Projecting the results to the population.
- C. The sample to be representative of the population.
- D. The sample to be selected haphazardly.
Answer: A
NEW QUESTION # 128
A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?
- A. Assist management in implementing recommended control improvements.
- B. Oversee the establishment and administration of an effective risk management program.
- C. Continuously monitor the organization's overall risk activities in relation to its risk appetite.
- D. Evaluate the adequacy and effectiveness of the organization's governance activities.
Answer: B
NEW QUESTION # 129
According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?
- A. The external auditors.
- B. Senior management.
- C. The chief audit executive.
- D. The board.
Answer: C
NEW QUESTION # 130
According to The IIA's Code of Ethics, which of the following is true?
- A. Confidentiality requires that auditors be prudent in the use and protection of client information.
- B. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
- C. Integrity requires that auditors perform internal audit services in accordance with the Standards.
- D. Confidentiality requires that auditors disclose all material facts known to them.
Answer: A
NEW QUESTION # 131
Which of the following types of social responsibilities is voluntary and guided purely by the organization's desire to make social contributions?
- A. Ethical responsibility.
- B. Innovative responsibility.
- C. The bottom of the pyramid responsibility.
- D. Discretionary responsibility.
Answer: A
NEW QUESTION # 132
The chief audit executive (CAE) of a mid-sized pharmaceutical organization has operational responsibility for the regulatory compliance function. The auditcommittee requests an assessment of regulatory compliance.
According to IIA guidance, which of the following is the CAE's best course of action?
- A. Have a proficient internal audit staff member perform the audit and report the results of the assessment directly to senior management and the board.
- B. Have a proficient internal audit staff member perform the assessment and disclose the impairment in the audit report and to the board.
- C. Have a regulatory compliance staff member perform a self-assessment, to be reviewed by a proficient internal auditor.
- D. Contract with a third-party entity or external auditor to complete the assessment and report the results to senior management and the board.
Answer: D
NEW QUESTION # 133
Which of the following is a weakness of observation as audit evidence?
- A. It cannot be used to test the existence assertion.
- B. It cannot be relied upon because the evidence is not persuasive.
- C. It cannot be used to test the completeness assertion.
- D. It cannot be used to test the occurrence assertion.
Answer: C
NEW QUESTION # 134
Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
- A. What level of noncompliance is acceptable.
- B. Whether an individual expenditure is allowable.
- C. Which sampling methodology to select for testing.
- D. Which fields to examine on each invoice.
Answer: A
NEW QUESTION # 135
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