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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 221:

  According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?

  1.

  Advocating the establishment of a risk management function.

  2.

  Identifying and evaluating significant risk exposures during audit engagements.

  3.

  Developing a risk response for the organization if there is no chief risk officer.

  4.

  Benchmarking risk management activities with other organizations.

  5.

  Documenting risk mitigation strategies and techniques.

  A. 4 and 5 only.
  B. 1.2, and 3 only.
  C. 1.2. 4. and 5 only.
  D. 2. 3. 4. and 5 only.
  C. 1.2. 4. and 5 only.

• Question 222:

  Which of the following is most likely to function as a directive control?

  A. Security dogs.
  B. Alert employees.
  C. Insurance claims.
  D. Cycle counts.
  B. Alert employees.

• Question 223:

  A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annua snowfall for the coming winter. Which of the following best describes this type of risk?

  A. Residual.
  B. Net.
  C. Inherent.
  D. Accepted.
  C. Inherent.

• Question 224:

  The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.

  Which of the following internal audit tools would be most effective to document the process and the key controls?

  A. Internal control checklist.
  B. Procurement employee survey.
  C. Cross-functional flow chart.
  D. Segregation of duties matrix.
  C. Cross-functional flow chart.

• Question 225:

  Which of the following controls is not appropriate for sales in a manufacturing organization?

  A. Customers' orders are recorded promptly.
  B. Goods shipped are matched with valid customer orders.
  C. Goods returned are inspected for damage by the receiving department for proper disposition.
  D. Sales department approval is required for credit sales transactions.
  D. Sales department approval is required for credit sales transactions.

• Question 226:

  The chief audit executive (CAE) of a mid-sized pharmaceutical organization has operational responsibility for the regulatory compliance function. The audit committee requests an assessment of regulatory compliance. According to IIA guidance, which of the following is the CAE's best course of action?

  A. Have a proficient internal audit staff member perform the assessment and disclose the impairment in the audit report and to the board.
  B. Have a regulatory compliance staff member perform a self-assessment, to be reviewed by a proficient internal auditor.
  C. Have a proficient internal audit staff member perform the audit and report the results of the assessment directly to senior management and the board.
  D. Contract with a third-party entity or external auditor to complete the assessment and report the results to senior management and the board.
  D. Contract with a third-party entity or external auditor to complete the assessment and report the results to senior management and the board.

• Question 227:

  According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

  A. Internal auditors shall continually improve their proficiency and effectiveness and quality of their services.
  B. Internal auditors shall respect and contribute to legitimate and ethical objectives of the organization.
  C. Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.
  D. Internal auditors shall be prudent in the use and protection of information acquired in the course of their duties.
  C. Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.

• Question 228:

  Which of the following is an example of a risk avoidance strategy?

  A. Hedging against exchange rate variations.
  B. Limiting access to an organization's data center.
  C. Selling a nonstrategic business unit.
  D. Outsourcing a high-risk activity.
  C. Selling a nonstrategic business unit.

• Question 229:

  Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

  A. Evaluating risk management processes.
  B. Recommending accountability for risk management.
  C. Providing assurance that risks are evaluated correctly.
  D. Supporting managers to identify ways to mitigate risks.
  B. Recommending accountability for risk management.

• Question 230:

  Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

  A. Hire a risk consultant.
  B. Implement a hedging strategy.
  C. Maintain a large foreign currency balance.
  D. Insist that customers only pay in a stable currency.
  B. Implement a hedging strategy.