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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 201:

  Which of the following is a valid statement about the use of visual observations during an audit engagement?

  1.

  Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.

  2.

  Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement.

  3.

  Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.

  4.

  Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization's senior management.

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

• Question 202:

  While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer's account number was not found in the customer master file. In this scenario, which of the following controls was lacking?

  A. Corrective control.
  B. Preventive control.
  C. Detective control.
  D. Directive control.
  A. Corrective control.

• Question 203:

  An assurance mapping exercise helps an organization do which of the following?

  1.

  Provide assurance to stakeholders that risks are managed and reported, and regulatory and legal obligations are met.

  2.

  Fulfill best practices in the industry.

  3.

  Identify and address any gaps in the risk management process.

  4.

  Identify fraud.

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

• Question 204:

  An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.

  Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?

  A. Confidentiality.
  B. Objectivity.
  C. Integrity.
  D. Competency.
  B. Objectivity.

• Question 205:

  Which of the following is the most common method of fraud detection?

  A. Analytical reviews of high-risk areas.
  B. Detective controls built into the daily processes.
  C. Unannounced audits or reviews of programs or departments.
  D. Tips received from employees or citizens.
  D. Tips received from employees or citizens.

• Question 206:

  The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?

  A. Demonstrated compliance with procedures.
  B. Due professional care.
  C. Engagement supervision.
  D. Employment of tools and techniques.
  C. Engagement supervision.

• Question 207:

  Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

  A. Suppliers' reports of over shipments.
  B. Warehouse receiving logs.
  C. Purchase requisitions and purchase orders.
  D. Observation and inspection of inventory.
  B. Warehouse receiving logs.

• Question 208:

  According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

  A. The board.
  B. The chief audit executive.
  C. Senior management.
  D. The external auditors.
  B. The chief audit executive.

• Question 209:

  An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

  A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
  B. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
  C. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
  D. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.
  B. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.

• Question 210:

  Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?

  A. Organizational status and objectivity.
  B. Supervision of the chief audit executive (CAE) by senior management.
  C. Organizational knowledge and skills.
  D. CAE certification.
  A. Organizational status and objectivity.