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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 171:

  An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?

  A. A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.
  B. A log that includes titles of conferences that all employees were invited to attend in the last year, along with the dates of those conferences and average costs per traveler.
  C. A log of conferences titles, dates of travel for each employee, and a detailed summary of conference objectives and how they relate to the organization's mission needs.
  D. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.
  A. A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.

• Question 172:

  An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

  A. Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
  B. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
  C. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.
  D. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.
  C. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

• Question 173:

  According to COSO, which of the following describes a principle related to the control environment?

  A. The organization identifies and assesses changes that could significantly impact the system of internal control.
  B. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
  C. The organization selects and develops control activities that contribute to the mitigation of risks.
  D. The organization performs evaluations to ascertain whether internal control components are present and functioning.
  B. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.

• Question 174:

  According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

  A. Management principles.
  B. Computerized information systems.
  C. Internal audit standards, procedures, and techniques.
  D. Fundamentals of accounting, economics, and finance.
  C. Internal audit standards, procedures, and techniques.

• Question 175:

  A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?

  A. Coordinate and facilitate risk workshops for management to attend.
  B. Establish the degree of risk appetite for management to accept.
  C. Set risk indicators and mitigation plans for management to implement.
  D. Determine the number of significant risks for management to report to the board.
  D. Determine the number of significant risks for management to report to the board.

• Question 176:

  An internal auditor is conducting an assessment of the organization's fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?

  1.

  The organization uses an automated authority approval matrix to control payments.

  2.

  The organization has a whistleblower hotline that is available to employees.

  3.

  Annually, every manager completes a comprehensive fraud assessment of his or her department.

  4.

  Annually, the organization reviews and communicates the code of expected behavior.

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

• Question 177:

  Internal auditors must exercise due professional care by considering which of the following?

  1.

  Cost of assurance in relation to potential benefits.

  2.

  Adequacy and effectiveness of governance, risk management, and control processes.

  3.

  Management's competency level in the area being evaluated.

  4.

  Probability of significant errors, fraud, or noncompliance.

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

  ---

  Explanation/Reference:

• Question 178:

  According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?

  A. The relative complexity, materiality, or significance of matters to which assurance procedures are applied.
  B. The extent of assurance services necessary to ensure that all risks are identified.
  C. The cost of providing the assurance services in relation to potential benefits.
  D. The probability of significant errors, irregularities or instances of noncompliance.
  B. The extent of assurance services necessary to ensure that all risks are identified.

• Question 179:

  Why is a code of ethics for the internal audit profession necessary?

  A. It ensures that all members of the profession possess the same level of competence.
  B. It provides auditors with protection from lawsuits.
  C. It guides internal auditors in their service to others.
  D. It requires auditors to exhibit loyalty to their organizations.
  C. It guides internal auditors in their service to others.

• Question 180:

  According to IIA guidance, which of the following statements regarding the internal audit charter is true?

  A. Senior management should approve the charter before it is submitted to the board.
  B. The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.
  C. The charter should define the consulting services that the internal audit activity is permitted to perform.
  D. The CEO periodically should assess whether the terms of the charter continue to be adequate.
  A. Senior management should approve the charter before it is submitted to the board.