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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 181:

  When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?

  1.

  Include copies of all client files that were reviewed for the audit.

  2.

  Avoid the use of professional, industry-appropriate jargon and technical terms.

  3.

  Indicate the original sources of all data and information used in the workpapers.

  4.

  Leave blank space for cross-references to be completed during the post-audit process.

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

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  Explanation/Reference:

• Question 182:

  During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report.

  Which of the following is especially important in dealing with this type of situation?

  A. Soft skills in communication, negotiation, and collaboration.
  B. Technical skills in the area under review.
  C. Professional qualifications and certification in internal auditing.
  D. Confidentiality and independence.
  A. Soft skills in communication, negotiation, and collaboration.

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  Explanation/Reference:

• Question 183:

  When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:

  A. Obtain specific answers and maximize efficiency.
  B. Gather factual data on several different topics.
  C. Determine agreement or disagreement with a stated viewpoint.
  D. Obtain information based on the person's own perspective.
  D. Obtain information based on the person's own perspective.

• Question 184:

  Which of the following is most likely to be considered a control weakness?

  A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
  B. Purchase orders are typed by the purchasing department using prenumbered forms.
  C. Buyers promptly update the official vendor listing as new supplier sources become known.
  D. Department managers initiate purchase requests that must be approved by the plant superintendent.
  C. Buyers promptly update the official vendor listing as new supplier sources become known.

• Question 185:

  According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?

  1.

  Obtain and review all purchasing-related audit reports issued within the past year.

  2.

  Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.

  3.

  Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.

  4.

  Request a copy of the report from a purchasing audit conducted last year by an external service provider.

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

• Question 186:

  According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?

  A. The training courses necessary to enhance the internal auditor's knowledge, skills, and other competencies.
  B. The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.
  C. The use of innovative technology and data analysis techniques.
  D. The extent of work needed to achieve the engagement's objectives.
  D. The extent of work needed to achieve the engagement's objectives.

• Question 187:

  Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?

  A. Management may be concerned about its reputation in the financial markets.
  B. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.
  C. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
  D. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.
  B. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

• Question 188:

  The chief audit executive (CAE) has been asked to manage the regulatory compliance function for the organization's retail store operations. Store operations are included in the annual audit plan.

  Which of the following strategies best fulfills the requirements of the Standards regarding these audits?

  A. The scope of store operations audits should exclude compliance.
  B. Store operations audits can be fully executed with appropriate disclosure to the board.
  C. Store operations audits should be performed by an external service provider.
  D. A store operations compliance audit should be performed by a staff internal auditor under the direction of the CAE.
  C. Store operations audits should be performed by an external service provider.

• Question 189:

  According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?

  1.

  The complexity of the work required.

  2.

  The needs and expectations of the client.

  3.

  The potential value of the engagement compared to the effort.

  4.

  Information regarding assumptions and procedures to be employed.

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

• Question 190:

  A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

  A. She may participate, but only after she has completed one year with the IAA.
  B. She may participate, because she did not previously work in the Human Resources Department.
  C. She may participate, but she must be supervised by the auditor in charge.
  D. She may participate for training purposes, to build her knowledge of the IAA.
  B. She may participate, because she did not previously work in the Human Resources Department.