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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 91:

  A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?

  A. Control activities.
  B. Information and communication.
  C. Commitment.
  D. Control environment.
  D. Control environment.

• Question 92:

  Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?

  A. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
  B. The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.
  C. The scope, findings, risks, recommendations, and agreed-upon improvement actions.
  D. The number and types of people involved in the assessment, costs, and duration of the QAIP
  C. The scope, findings, risks, recommendations, and agreed-upon improvement actions.

• Question 93:

  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.
  A. Review notes of questions that arise during the review process must be retained.

• Question 94:

  Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

  A. Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
  B. The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.
  C. Security cameras that monitor cash handling at the register are not functioning.
  D. The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.
  B. The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.

• Question 95:

  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. Variability tolerance.
  B. Ratio estimation.
  C. Stratification.
  D. Acceptance sampling.
  B. Ratio estimation.

• Question 96:

  According to IIA guidance, which of the following is the best example of a system application control?

  A. A physical security control over a data center.
  B. A system development life cycle control.
  C. A program change management control.
  D. An input control over data integrity.
  D. An input control over data integrity.

• Question 97:

  Which of the following is a preventive control?

  A. Creating an audit trail.
  B. Placing controls on physical access to inventory.
  C. Reconciling purchase orders with approvals.
  D. Reviewing expense accounts for irregularities.
  B. Placing controls on physical access to inventory.

• Question 98:

  According to The IIA's Code of Ethics, which of the following is true?

  A. Confidentiality requires that auditors disclose all material facts known to them.
  B. Integrity requires that auditors perform internal audit services in accordance with the Standards.
  C. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
  D. Confidentiality requires that auditors be prudent in the use and protection of client information.
  D. Confidentiality requires that auditors be prudent in the use and protection of client information.

• Question 99:

  What is the primary purpose of a fishbone diagram?

  A. To depict the areas of responsibility for departments in an organization.
  B. To plan and control complex projects, such as internal audits.
  C. To represent the frequencies of adverse conditions in a given process.
  D. To identify the possible causes of adverse conditions.
  D. To identify the possible causes of adverse conditions.

• Question 100:

  Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?

  A. Analytical review.
  B. Inquiry.
  C. Document verification.
  D. Observation.
  A. Analytical review.