IIA IIA-CRMA-ADV Online Practice Questions and Exam Preparation

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 1:

  Which of the following is an activity that an internal auditor must not perform?

  A. Establish and provide continuing assurance on an anti-money laundering program for new hires.
  B. Survey employees for their understanding of anti-money laundering practices.
  C. Provide assurance for the effectiveness of anti-money laundering training.
  D. Assess the risk of being fined for ineffective anti-money laundering practices.
  A. Establish and provide continuing assurance on an anti-money laundering program for new hires.

• Question 2:

  Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?

  1.

  Periodically report about the accounting standards followed by the organization.

  2.

  Provide assurance to the audit committee that its charter, activities, and processes are appropriate.

  3.

  Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.

  4.

  Maintain open and effective communications with the audit committee.

  A. 1 and 2 only
  B. 3 and 4 only
  C. 1, 3, and 4 only
  D. 2, 3, and 4 only
  D. 2, 3, and 4 only

• Question 3:

  An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?

  A. Risk identification.
  B. Risk appetite.
  C. Risk capacity.
  D. Risk tolerance.
  D. Risk tolerance.

• Question 4:

  Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

  A. Internal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.
  B. Internal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization.
  C. Internal auditor integrity enables the internal audit activity to be able to demonstrate independence.
  D. Internal auditor integrity enables users of internal auditors' work to make important business decisions.
  D. Internal auditor integrity enables users of internal auditors' work to make important business decisions.

• Question 5:

  Which of the following is not an objective of internal control?

  A. Compliance.
  B. Accuracy.
  C. Efficiency.
  D. Validation.
  D. Validation.

• Question 6:

  According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?

  A. Accepting a consulting request in the IT department without possessing the requisite experience.
  B. Providing personal tax preparation services for a fee for several employees during the lunch hour.
  C. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.
  D. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.
  C. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.

• Question 7:

  Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?

  1.

  Appropriate levels of authority and responsibility.

  2.

  Supervision of staff and appropriate review of work.

  3.

  The seniority of management in the organization.

  4.

  The ability to trace each transaction to an accountable and responsible individual.

  A. 1,2, and 3.
  B. 1.2, and 4.
  C. 1.3, and 4.
  D. 2, 3, and 4.
  D. 2, 3, and 4.

• Question 8:

  Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

  A. Observation of the facility during operations.
  B. Questioning of facility management, including the facility safety officer.
  C. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
  D. Review of records involving safety violations, filed by facility production employees.
  A. Observation of the facility during operations.

• Question 9:

  A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.

  Which of the following statements is true about the auditor's actions?

  A. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
  B. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
  C. They are in violation of neither the IIA Code of Ethics nor the Standards.
  D. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
  C. They are in violation of neither the IIA Code of Ethics nor the Standards.

• Question 10:

  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. Cash or accounts receivable has decreased.
  B. The gross margin has decreased.
  C. The division produced fewer items this year than in prior years.
  D. The gross margin has increased.
  A. Cash or accounts receivable has decreased.