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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 111:

  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.
  A. The periodic rotation of procurement officers' assignments to supplier accounts.

• Question 112:

  Which of the following would be considered a preventive control?

  A. A library control log.
  B. A review of exception reports.
  C. A password lock on a server.
  D. A software scan of financial records for irregularities.
  C. A password lock on a server.

• Question 113:

  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.
  A. Act as an adviser to the committee responsible for reviewing violations of the code.

• Question 114:

  Which of the following is most likely to enhance an internal auditor's objectivity?

  A. An auditor is appropriately able to communicate results.
  B. An auditor performs his work free from interference.
  C. An auditor is unrestricted in determination of scope.
  D. An auditor avoids conflicts of interest.
  D. An auditor avoids conflicts of interest.

• Question 115:

  Which of the following scenarios exemplifies a potential internal control weakness?

  A. The same employee who receives cash from customers prepares a prelisting of cash receipts.
  B. The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.
  C. The same employee who restrictively endorses checks received from customers prepares the bank's check deposit slips.
  D. The same employee who makes deposits at the bank prepares the monthly bank reconciliation.
  D. The same employee who makes deposits at the bank prepares the monthly bank reconciliation.

• Question 116:

  Which of the following statements accurately describes the responsibility of the internal audit activity regarding IT governance?

  1.

  The internal audit activity does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.

  2.

  The internal audit activity must assess whether the IT governance of the organization supports the organization's strategies and objectives.

  3.

  The internal audit activity may assess whether the IT governance of the organization supports the organization's strategies and objectives.

  4.

  The internal audit activity may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.

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

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  Explanation/Reference:

• Question 117:

  Non-statistical sampling does not require which of the following?

  A. The sample to be representative of the population.
  B. The sample to be selected haphazardly.
  C. A smaller sample size than if selected using statistical sampling.
  D. Projecting the results to the population.
  C. A smaller sample size than if selected using statistical sampling.

• Question 118:

  Which of the following control activities is the most effective to ensure users' levels of access are appropriate for their current roles?

  A. The human resources department generates a monthly list of terminated and transferred employees and requests IT to update the user access as required.
  B. Standardized user access profiles are developed and the appropriate access profiles are automatically assigned to new or transferred employees.
  C. System administrator rights are assigned to one user in each department who can update user access of terminated or transferred employees immediately.
  D. Department managers are required to perform periodic user access reviews of relevant systems and applications.
  D. Department managers are required to perform periodic user access reviews of relevant systems and applications.

• Question 119:

  What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

  A. During facilitated workshops, people more openly say things to internal auditors than during private interviews.
  B. Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.
  C. Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.
  D. The testimonial evidence obtained during facilitated workshops is generally considered more reliable.
  C. Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

• Question 120:

  With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

  A. Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization's risk appetite.
  B. Evaluate the organization's governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization's risk appetite.
  C. Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.
  D. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks.
  D. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks.