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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 211:

  When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?

  1.

  Subsequent change orders increase requirements for low-bid items.

  2.

  Material contract requirements are different on the actual contract than on the request for bids.

  3.

  A high percentage of employees are charged to indirect accounts.

  4.

  Losing bidders are hired as subcontractors.

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

• Question 212:

  Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

  A. Governance, risk, and control.
  B. Performance management.
  C. Business acumen.
  D. Internal audit delivery.
  B. Performance management.

• Question 213:

  Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?

  A. A risk and control matrix.
  B. A flowchart.
  C. A walk-through.
  D. A process narrative.
  A. A risk and control matrix.

• Question 214:

  An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

  A. Preventive controls.
  B. Detective controls.
  C. Soft controls.
  D. Directive controls.
  A. Preventive controls.

• Question 215:

  According to COSO, which of the following is not considered one of the components of an organization's internal environment?

  A. Authority and responsibility to resolve issues.
  B. Framework to plan, execute and monitor activities.
  C. Integrated responses to multiple risks.
  D. Knowledge and skills needed to perform activities.
  C. Integrated responses to multiple risks.

• Question 216:

  An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

  A. Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.
  B. Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.
  C. Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.
  D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.
  D. Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

• Question 217:

  The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

  A. The CAE's work may be reviewed by any other experienced staff member within the IAA.
  B. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
  C. The CAE may self-review his work, provided he discloses this practice in the final report.
  D. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.
  B. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.

• Question 218:

  An accounts receivable clerk receives cash payments, posts the payments to customer accounts, and prepares the daily cash deposit.

  The clerk has been stealing some cash and manipulating the customer payments to hide the theft.

  This fraud could be detected with which of the following controls?

  A. Monthly bank reconciliations are performed by the clerk on a timely basis.
  B. Total cash deposits for the month are reconciled to the cash receipts journal.
  C. Names, amounts, and dates on remittance advices are reconciled with the names, amounts, and dates recorded in the cash receipts journal.
  D. Total cash deposits are compared with the bank reconciliation.
  C. Names, amounts, and dates on remittance advices are reconciled with the names, amounts, and dates recorded in the cash receipts journal.

• Question 219:

  According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

  A. The audit committee and senior management.
  B. The audit committee and the external auditors.
  C. Senior management and management of the audited area.
  D. Senior management and the external auditors.
  A. The audit committee and senior management.

• Question 220:

  While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?

  1.

  Ensure all tests use a random sampling technique.

  2.

  Consider a judgmental approach for the sample size.

  3.

  Assess testing errors through root cause analysis.

  4.

  Ensure that the entire data set is tested.

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