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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 131:

  According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization's operations?

  A. The services must be aligned with those defined in the internal audit charter.
  B. The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.
  C. The services may preclude assurance services from the consulting engagement.
  D. The services impose no responsibility to communicate information other than to the engagement client.
  B. The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.

• Question 132:

  A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?

  A. Communication.
  B. Persuasion and collaboration.
  C. Business acumen.
  D. Governance, risk, and control.
  A. Communication.

• Question 133:

  According to IIA guidance, which of the following statements is true?

  A. Risks in IT processes are best mitigated by individual controls.
  B. The overall focus of the framework is on significant controls in all critical IT applications.
  C. IT risks and related controls are operational and best identified using a bottom-up approach.
  D. Control process risks are found at multiple layers of the IT environment.
  D. Control process risks are found at multiple layers of the IT environment.

• Question 134:

  Which of the following is considered a violation of The IIA's Code of Ethics?

  A. An auditor conveys public information about an organization's financial condition.
  B. An auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.
  C. An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.
  D. An auditor reports material deficiencies, despite the fact that management is already aware of the defects.
  C. An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.

• Question 135:

  What is the purpose of a secondary control?

  A. It replaces primary controls that are either ineffective or cannot fully mitigate a risk.
  B. It partially reduces the residual risk level when a key control does not operate effectively.
  C. lt combines with other controls to help reduce significant risk exposures to an acceptable level.
  D. It helps to ensure the completeness and accuracy of automated controls in a system environment.
  C. lt combines with other controls to help reduce significant risk exposures to an acceptable level.

• Question 136:

  According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?

  1.

  Identification.

  2.

  Mitigation.

  3.

  Remediation.

  4.

  Reduction.

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

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  Explanation/Reference:

• Question 137:

  A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

  A. Require the physician to submit a signed statement attesting that the treatments had been performed.
  B. Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.
  C. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.
  D. Use computer software to identify abnormal claims based on the insured's age and medical history.
  D. Use computer software to identify abnormal claims based on the insured's age and medical history.

• Question 138:

  According to IIA guidance, which of the following should be formally documented in the internal audit charter?

  A. The internal audit activity's responsibility for imposing risk management processes.
  B. The internal audit activity's responsibility for the organization's governance framework.
  C. The nature of consulting services provided by the internal audit activity.
  D. The budgeting process for the internal audit activity.
  C. The nature of consulting services provided by the internal audit activity.

• Question 139:

  Forty-five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.

  Which of the following represents the organization's residual risk for online customer payments due?

  A. $11, 250
  B. $25, 000
  C. $33, 750
  D. $45, 000
  A. $11, 250

• Question 140:

  After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

  A. To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.
  B. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.
  C. In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.
  D. In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.
  B. At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.