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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 141:

  The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

  A. Pressure or incentive.
  B. Opportunity.
  C. Rationalization.
  D. Commitment.
  A. Pressure or incentive.

• Question 142:

  According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?

  A. Three months.
  B. Six months.
  C. One year.
  D. Two years.
  C. One year.

• Question 143:

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

  A. When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.
  B. When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.
  C. When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.
  D. When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.
  C. When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.

• Question 144:

  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.
  D. He identified a junior auditor to conduct the work for him on a complex area of the organization.

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  Explanation/Reference:

• Question 145:

  An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?

  A. Risk avoidance.
  B. Risk-benefit analysis.
  C. Risk sharing.
  D. Risk acceptance.
  D. Risk acceptance.

• Question 146:

  According to IIA guidance, when preparing the charter for the internal audit activity, the chief audit executive (CAE), board, and senior management should agree on which of the following?

  1.

  The standards to be used by the internal audit activity.

  2.

  The internal audit activity's code of ethics.

  3.

  The CAE's reporting line.

  4.

  The internal audit activity's responsibilities.

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

• Question 147:

  Which of the following is the most common way that occupational fraud is detected?

  A. Internal audits.
  B. Whistleblower hotline.
  C. Key controls.
  D. External audits.
  B. Whistleblower hotline.

• Question 148:

  Which segregation of duties would best reduce the risk of payroll fraud?

  A. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.
  B. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.
  C. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.
  D. Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee's bank account.
  A. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.

• Question 149:

  According to IIA guidance, which of the following statements about working papers is false?

  A. They assist in the implementation of recommendations.
  B. They provide support for communication to third parties.
  C. They demonstrate compliance with auditing standards.
  D. They contribute to development of the internal audit staff.
  A. They assist in the implementation of recommendations.

• Question 150:

  Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

  A. Because management requires the review to measure effectiveness of the internal audit activity.
  B. So that the individual objectivity of the internal audit staff can be more clearly established.
  C. So that there is assurance of the internal audit staff's proficiency to complete audit activities.
  D. Because changes in the organization may impair the internal audit activity's ability to meet its objectives.
  D. Because changes in the organization may impair the internal audit activity's ability to meet its objectives.