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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 151:

  Which of the following are components of the ISO 31000 risk management process?

  1.

  Setting the context.

  2.

  Risk treatment.

  3.

  Risk avoidance.

  4.

  Communication.

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

• Question 152:

  Which of the following is an example of a risk management avoidance response?

  A. Exiting a marketplace.
  B. Recalling a product.
  C. Obtaining product insurance.
  D. Outsourcing production.
  A. Exiting a marketplace.

• Question 153:

  Allegations have been made that an organization's share price has been manipulated.

  Which of the following would provide an internal auditor with the most objective evidence in this case?

  A. Major shareholders of the organization.
  B. Large customers of the organization.
  C. Former members of management.
  D. Former financial consultants.
  D. Former financial consultants.

• Question 154:

  Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?

  A. Their understanding of auditing standards.
  B. Previous experience working with the internal audit activity.
  C. Their reporting line within the organization.
  D. The nature of their regular duties and responsibilities.
  A. Their understanding of auditing standards.

• Question 155:

  According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?

  A. The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.
  B. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
  C. The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.
  D. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.
  B. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.

• Question 156:

  Which of the following describes a key characteristic related to effective organizational communication?

  A. Comprehensive supervisory and verification procedures.
  B. A well-designed system of internal controls.
  C. A culture of integrity and transparency.
  D. Unique operating environments with varying complexity.
  B. A well-designed system of internal controls.

• Question 157:

  Which of the following best ensures the independence of the internal audit activity?

  1.

  The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.

  2.

  The audit committee reviews the performance of the chief audit executive (CAE) periodically.

  3.

  The internal audit charter requires the CAE to report functionally to the audit committee.

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

• Question 158:

  Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?

  A. They serve as a reminder of what controls should exist in a process.
  B. They require yes/no responses to specific questions, not open-ended responses.
  C. They do not capture all controls that may exist.
  D. They are useful in assessing risk.
  C. They do not capture all controls that may exist.

• Question 159:

  The manager for an organization's accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

  A. An operations audit of the accounts payable department.
  B. A consulting engagement related to a new accounts payable optimization initiative.
  C. A review of the employees' sports club finances, which are overseen by the chief audit executive.
  D. An assurance review for a sales program on which she previously provided consultation.
  C. A review of the employees' sports club finances, which are overseen by the chief audit executive.

• Question 160:

  Which of the following risk management activities is most appropriate for an internal auditor to undertake?

  A. Impose risk management processes.
  B. Coordinate risk management activities.
  C. Implement risk responses on management's behalf.
  D. Review the management of key risks.
  D. Review the management of key risks.