100% Accurate Answers! Oct-2023 IIA-CRMA Actual Real Exam Questions
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NEW QUESTION # 80
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 the external auditors.
- D. Senior management and management of the audited area.
Answer: A
NEW QUESTION # 81
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. 3 and 4.
- B. 1 and 2 only.
- C. 1,2, and 4.
- D. 2 and 3.
Answer: B
NEW QUESTION # 82
Which of the following is a detective control strategy against fraud?
- A. Implementing a control self-assessment.
- B. Performing background checks on employees.
- C. Performing a surprise audit.
- D. Requiring employees to attend ethics training.
Answer: C
NEW QUESTION # 83
A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?
- A. Performing a pre-implementation review of the company's payroll application.
- B. Preparing the financial statements for the company's defined contribution plan.
- C. Providing the COBIT framework as a possible IT management tool.
- D. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.
Answer: B
NEW QUESTION # 84
The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?
- A. Engagement supervision.
- B. Demonstrated compliance with procedures.
- C. Due professional care.
- D. Employment of tools and techniques.
Answer: A
NEW QUESTION # 85
In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?
- A. There is no available expertise on the internal audit team to perform a consulting engagement.
- B. There is no expertise within the internal audit team for detecting and investigating fraud.
- C. There is no expertise within the internal audit team for auditing an IT engagement.
- D. The CAE would need to procure external services to deliver the internal audit assurance program.
Answer: B
NEW QUESTION # 86
Which of the following statements describes impairment to the internal auditor's objectivity?
- A. An internal auditor reduces the scope of an audit engagement due to budget restrictions.
- B. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
- C. An internal auditor performs an assessment of the operations for which he was recently responsible.
- D. An internal auditor receives a promotional gift that is available to the organization's employees.
Answer: C
NEW QUESTION # 87
The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?
- A. The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.
- B. The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.
- C. The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.
- D. The CAE should seek sufficient funding to increase audit resources to meet the minimum requirements of the Standards.
Answer: B
NEW QUESTION # 88
An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?
- A. Utilize dedicated and encrypted network connections.
- B. Apply antivirus and patch management software.
- C. Install a software inventory management application.
- D. Utilize secure socket layer encryption.
Answer: C
NEW QUESTION # 89
This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned.
Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline.
Which of the following would be the best course of action for the CAE to take?
- A. Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.
- B. Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.
- C. Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.
- D. Ask that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.
Answer: B
NEW QUESTION # 90
Which of the following is an activity that an internal auditor must not perform?
- A. Assess the risk of being fined for ineffective anti-money laundering practices.
- B. Establish and provide continuing assurance on an anti-money laundering program for new hires.
- C. Survey employees for their understanding of anti-money laundering practices.
- D. Provide assurance for the effectiveness of anti-money laundering training.
Answer: B
NEW QUESTION # 91
Which of the following is not an objective of internal control?
- A. Compliance.
- B. Validation.
- C. Accuracy.
- D. Efficiency.
Answer: B
NEW QUESTION # 92
Which of the following is an example of a detective control?
- A. Automatic shut-off valve.
- B. Safety instructions.
- C. Confirmation with suppliers and vendors.
- D. Auto-correct software functionality.
Answer: C
NEW QUESTION # 93
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. Workshops.
- C. Observation.
- D. Interviews.
Answer: A
NEW QUESTION # 94
An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate).
Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?
- A. Acceptance sampling.
- B. Variability tolerance.
- C. Ratio estimation.
- D. Stratification.
Answer: C
NEW QUESTION # 95
Which of the following is the most common method of fraud detection?
- A. Tips received from employees or citizens.
- B. Detective controls built into the daily processes.
- C. Unannounced audits or reviews of programs or departments.
- D. Analytical reviews of high-risk areas.
Answer: A
NEW QUESTION # 96
An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
- A. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
- B. Ensure that adequate edit and reasonableness checks are built into the automated system.
- C. Require a manager, who is independent of the system and who cannot change the table, to authorize and sign-off on any employee pay changes.
- D. Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.
Answer: C
NEW QUESTION # 97
Which of the following best demonstrates the authority of the internal audit activity?
- A. Achieving engagement objectives.
- B. Suggesting alternatives to decision makers.
- C. Improving the integrity of information.
- D. Determining the scope of internal audit services.
Answer: D
NEW QUESTION # 98
Which of the following is the most common way that occupational fraud is detected?
- A. External audits.
- B. Internal audits.
- C. Key controls.
- D. Whistleblower hotline.
Answer: D
NEW QUESTION # 99
A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?
- A. Obtain full board approval of the internal audit activity's annual audit plan.
- B. Move the CAE's functional reporting to the audit committee.
- C. Appoint the CAE as a member of the board.
- D. Move the CAE's functional reporting to an executive who is not on the board.
Answer: B
NEW QUESTION # 100
An internal audit charter should do which of the following?
- A. Outline the schedule of future audits.
- B. Define the scope of internal audit activities.
- C. Establish the size of the internal audit activity.
- D. Communicate the internal audit activity's goals.
Answer: B
NEW QUESTION # 101
Which of the following statements is true about The IIA Global Internal Audit Competency Framework?
- A. 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.
- B. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
- C. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.
- D. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
Answer: A
NEW QUESTION # 102
Which of the following combinations of conditions is most likely a red flag for fraud?
- A. Hiring an employee with a prior fraud conviction and yearly management review.
- B. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.
- C. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.
- D. The practice of surprise audits and the implementation of an employee support program.
Answer: B
NEW QUESTION # 103
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