Free IIA-CRMA-ADV Exam Dumps Preview

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

A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property.

What change of risk response strategy does this course of action most likely reflect?

Which of the following is not an objective of internal control?

Which of the following scenarios best illustrates the principle of due professional care?

A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities.
According to MA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of

the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors.
According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Which of the following best ensures the independence of the internal audit activity?

1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.

2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.

3. The internal audit charter requires the CAE to report functionally to the audit committee.

According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility.
This best describes which of the following risk concepts?

To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity.
According to IIA guidance, which of the following statements is true regarding these circumstances?

Which of the following types of social responsibilities is voluntary and guided purely by the organization's desire to make social contributions?

Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?

According to IIA guidance, which of the following is the best example of a system application control?

Who is responsible for setting the risk appetite?

Which of the following factors have the greatest influence on the independence of the internal audit activity?

Which of the following statements describes a control failure that is not directly attributable to a customer billing application?

1. End users have raised a number of concerns regarding data integrity.

2. An untested program change is transferred from the test environment to production.

3. Purchase history does not reconcile with accounts receivable for some customers.

4. End user security is inadvertently granted to an unauthorized individual by management.

The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years.

Which of the following statements may the IAA use to describe its work?

In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers' accounts?

Which of the following is a weakness of observation as audit evidence?

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Why is it important for the chief audit executive to periodically review the audit charter and present the results to senior management and the board?

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

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.

According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

Which of the following is an example of a transaction-level control?

Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

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

Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?

According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?

During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report.

Which of the following is especially important in dealing with this type of situation?

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation.
If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

Which of the following enhances the independence of the internal audit activity?

Which of the following types of fraud includes embezzlement?

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?

1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.

2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.

3. The application of technology-based audit and other data analysis techniques, where appropriate.

4. The relative complexity and extent of work needed to achieve the engagement's objectives.

An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims.

Which of the following methods would be most effective and efficient in completing this task?

According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?

1. The complexity of the work required.

2. The needs and expectations of the client.

3. The potential value of the engagement compared to the effort.

4. Information regarding assumptions and procedures to be employed.

According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?

1. Obtain and review all purchasing-related audit reports issued within the past year.

2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.

3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.

4. Request a copy of the report from a purchasing audit conducted last year by an external service

provider.

Allegations have been made that an organization's share price has been manipulated.

Which of the following would provide an internal auditor with the most objective evidence in this case?

When internal auditors are preparing workpapers for the testing stage of an engagement, which of the following guidelines should be observed?

1. Include copies of all client files that were reviewed for the audit.

2. Avoid the use of professional, industry-appropriate jargon and technical terms.

3. Indicate the original sources of all data and information used in the workpapers.

4. Leave blank space for cross-references to be completed during the post-audit process.

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

Which of the following are core responsibilities to be included in the internal audit charter?

1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.

2. Determine the adequacy and effectiveness of the organization's systems of internal accounting and operating controls.

3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.

4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.