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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 191:

  An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management. Which of the following correctly identifies the type of evidence this information represents?

  A. Competent, corroborative evidence of future working capital requirements.
  B. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
  C. Competent, documentary evidence of future cash flow changes within the organization.
  D. Sufficient, circumstantial evidence of the future solvency of the organization.
  C. Competent, documentary evidence of future cash flow changes within the organization.

• Question 192:

  The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?

  1.

  Average client customer satisfaction score for a given year.

  2.

  Client survey comments on how to improve the IAA.

  3.

  Auditor interviews once an audit has been completed.

  4.

  Percentage of audits completed within 90 days.

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

• Question 193:

  Which of the following statements is true with regard to conducting an effective quality assurance and improvement program?

  A. The IIA's Quality Assessment Manual for the Internal Audit Activity must be used as the basis for periodic assessments.
  B. Members of the internal audit activity are not permitted to perform quality assessments, as they would not be independent.
  C. Periodic internal assessments provide the most current and independent recommendations for improvement.
  D. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.
  D. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.

• Question 194:

  An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor's suspicion?

  A. A much higher bad debt expense as a percentage of sales than that of previous years.
  B. A much higher bad debt expense as a percentage of sales than that of other stores.
  C. A much higher percentage of past-due accounts receivable than that of other stores.
  D. A much higher percentage of past-due accounts receivable than that of previous years.
  B. A much higher bad debt expense as a percentage of sales than that of other stores.

• Question 195:

  Which of the following best describes the misdirection of payments on accounts receivable to an employee's bank account?

  A. Fraud open on the books.
  B. Fraud hidden on the books.
  C. Fraud off the books.
  D. Fraud on the balance sheet.
  C. Fraud off the books.

• Question 196:

  A candidate has applied for an entry level internal audit position. The candidate holds a CISA (Certified Information Systems Auditor) designation, and has six months of audit experience, but limited knowledge of accounting principles and techniques. According to the IIA guidance, which of the following is the most relevant reason for the chief audit executive to consider this candidate?

  A. Other internal auditors possess sufficient knowledge of accounting principles and techniques.
  B. The candidate's information systems knowledge and real-world experience in internal auditing.
  C. Accounting skills can be learned over time with appropriate training.
  D. An entry level position does not require expertise in any particular area.
  B. The candidate's information systems knowledge and real-world experience in internal auditing.

• Question 197:

  A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

  A. Logic test.
  B. Check digits.
  C. Data integrity tests.
  D. Balancing control activities.
  A. Logic test.

• Question 198:

  Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

  A. Manage and support a quality assurance and improvement program.
  B. Maintain industry-specific knowledge appropriate to the audit engagements
  C. Set clear performance standards for internal auditors and the internal audit activity.
  D. Apply problem-solving techniques for routine situations.
  C. Set clear performance standards for internal auditors and the internal audit activity.

• Question 199:

  While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

  A. Resource management.
  B. Coordination.
  C. Due professional care.
  D. Engagement supervision.
  C. Due professional care.

• Question 200:

  Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?

  A. Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.
  B. Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.
  C. Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.
  D. Internal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.
  B. Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.