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

IIA IIA-CRMA-ADV Online Questions & Answers

• Question 71:

  If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

  A. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.
  B. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.
  C. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.
  D. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.
  C. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

• Question 72:

  An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

  A. Management will be able to reduce inherent risk because they will have a better understanding of risk.
  B. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
  C. Stakeholders will have more assurance that the risks are assessed consistently.
  D. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
  C. Stakeholders will have more assurance that the risks are assessed consistently.

• Question 73:

  During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.

  Which of the following tests would best help the internal auditor detect fraudulent activity?

  A. Check inventory levels.
  B. Search for gaps in check numbers.
  C. Compare vendor summaries.
  D. Review raw material purchase quantities.
  A. Check inventory levels.

• Question 74:

  Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?

  A. The internal audit activity's plan for resource allocation.
  B. The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.
  C. The number of audits from the annual internal audit plan that were completed last year.
  D. The qualifications and independence of the assessment Team.
  B. The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.

• Question 75:

  According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving its use of tools and techniques?

  A. Negotiation and conflict resolution.
  B. Project management.
  C. Financial accounting.
  D. Ethics and fraud.
  B. Project management.

• Question 76:

  Which two of the following are preventive controls in a check disbursement process?

  1.

  Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.

  2.

  Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.

  3.

  An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.

  4.

  Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.

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

• Question 77:

  According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?

  A. Control environment.
  B. Control activities.
  C. Risk assessment.
  D. Monitoring.
  D. Monitoring.

• Question 78:

  Which of the following combinations of conditions is most likely a red flag for fraud?

  A. The practice of surprise audits and the implementation of an employee support program.
  B. Hiring an employee with a prior fraud conviction and yearly management review.
  C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.
  D. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.
  C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

• Question 79:

  Which of the following conditions is the most likely indicator of fraud?

  A. Commissions are paid based on verified increases to sales.
  B. Departmental reports are consistently issued in an untimely manner.
  C. A manager regularly assumes subordinates' duties.
  D. Lower earnings occur during the industry's down cycle.
  C. A manager regularly assumes subordinates' duties.

• Question 80:

  According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?

  A. When planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.
  B. Internal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.
  C. Internal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.
  D. Both assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.
  A. When planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.