IIA-CRMA-ADV Real Exam Questions and Verified Answers

Question 1 Single choice

An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization.

Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

A
The periodic rotation of procurement officers' assignments to supplier accounts.
B
A pre-award financial capacity analysis of suppliers.
C
An automated computer report, organized by supplier, of any invoices for the same amount.
D
Periodic inventories of kiln-dried wood at the organization's warehouse.

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Correct answer: A

Question 2 Single choice

During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole.

This is an example of which of the following analytical auditing procedures?

A
Reasonableness test.
B
Regression analysis.
C
Benchmarking.
D
Trend analysis.

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Correct answer: C

Question 3 Single choice

What should the internal auditor's role be in assessing the organization's ethical climate?

A
Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and B.
B
Processes for achieving the desired level of legal and ethical compliance.
C
Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.
D
Perform background checks of potential new employees before they are hired by the organization.

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Correct answer: B

Question 4 Single choice

The internal audit supervisor is reviewing the workpapers prepared by the staff.
According to the Standards, which of the following statements regarding workpaper supervision is not true?

A
Review notes of questions that arise during the review process must be retained.
B
Dating and initialing each workpaper provides evidence of review.
C
Workpaper review allows for staff training and development.
D
Workpapers may be amended during the review process.

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Correct answer: A

Question 5 Single choice

Which of the following is the most common method of fraud detection?

A
Analytical reviews of high-risk areas.
B
Detective controls built into the daily processes.
C
Unannounced audits or reviews of programs or departments.
D
Tips received from employees or citizens.

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Correct answer: D

Question 6 Single choice

Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?

A
Act as an adviser to the committee responsible for reviewing violations of the code.
B
Review and adjudicate all violations of the code of conduct.
C
Lead the committee responsible for the oversight of the code.
D
Implement a system of procedures to inform all employees of the code.

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Correct answer: A

Question 7 Single choice

In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

A
Maintaining industry-specific knowledge appropriate to the organization.
B
Assessing how IT contributes to organization objectives, risks, and relevance to audit.
C
Maintaining technical aspects of accounting standards and reporting processes.
D
Understanding regulatory and legal framework and assessing its relevance.

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Correct answer: D

Question 8 Single choice

According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?

When auditing investments, the auditor identified instruments with which he was unfamiliar. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to A. perform a proper assessment.

A
An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.
B
An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.
C
An auditor in charge needed to have testing completed by the end of the month, but was behind schedule.
D
He identified a junior auditor to conduct the work for him on a complex area of the organization.

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Correct answer: D

Question 9 Single choice

Which of the following options is the most cost-effective and efficient way for internal auditors to keep current with the latest developments in the internal audit profession?

A
Attending annual professional conferences and seminars.
B
Participating in on-the-job training in various departments of the organization.
C
Pursuing as many professional certifications as possible.
D
Maintaining membership in The HA and similar professional organizations and subscribing to relevant email updates or news feeds.

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Correct answer: D

Question 10 Single choice

Which of the following is a detective control strategy against fraud?

A
Requiring employees to attend ethics training.
B
Performing background checks on employees.
C
Implementing a control self-assessment.
D
Performing a surprise audit.

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Correct answer: D