IIA-CRMA-ADV Self-Study Guide for Becoming an Certification in Risk Management Assurance Expert
IIA-CRMA-ADV Study Guide Realistic Verified IIA-CRMA-ADV Dumps
NEW QUESTION # 102
Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?
- A. Maintain industry-specific knowledge appropriate to the audit engagements
- B. Set clear performance standards for internal auditors and the internal audit activity.
- C. Manage and support a quality assurance and improvement program.
- D. Apply problem-solving techniques for routine situations.
Answer: B
NEW QUESTION # 103
Which of the following statements best explains why internal auditors map processes?
1. To obtain audit evidence to support auditor's observations.
2. To determine scope and objectives of the audit.
3. To facilitate the identification of ownership and responsibility for key risks.
4. To identify potential efficiency improvements.
- A. 3 and 4.
- B. 1 and 2.
- C. 2 and 4.
- D. 1 and 3.
Answer: A
NEW QUESTION # 104
Which of the following is most likely to enhance an internal auditor's objectivity?
- A. An auditor avoids conflicts of interest.
- B. An auditor is appropriately able to communicate results.
- C. An auditor is unrestricted in determination of scope.
- D. An auditor performs his work free from interference.
Answer: A
NEW QUESTION # 105
An auditor in charge was reviewing the workpapers submitted by a newly hired internal auditor. She noted that the new auditor's analytical work did not include any rating or quantification of the risk assessment results, and she returned the workpapers for correction. Which section of the workpapers will the new auditor need to modify?
- A. Effect section.
- B. Criteria section.
- C. Condition section.
- D. Cause section.
Answer: A
NEW QUESTION # 106
Which of the following is the primary engagement responsibility of an entry-level internal auditor?
- A. Documentation.
- B. Analysis.
- C. Leadership.
- D. Reporting.
Answer: B
NEW QUESTION # 107
According to IIA guidance, which of the following should be included in the internal audit charter?
- A. Organizational relationships and reporting lines.
- B. Identification of the organizational units where engagements are to be performed.
- C. Assigned responsibilities for designing and implementing controls.
- D. The minimum resources and competencies needed for the internal audit activity.
Answer: A
NEW QUESTION # 108
While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?
- A. Due professional care.
- B. Engagement supervision.
- C. Resource management.
- D. Coordination.
Answer: A
NEW QUESTION # 109
Which of the following statements is true about The IIA Global Internal Audit Competency Framework?
- A. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.
- B. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.
- C. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.
- D. The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.
Answer: D
NEW QUESTION # 110
Forty-five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.
Which of the following represents the organization's residual risk for online customer payments due?
- A. $45, 000
- B. $25, 000
- C. $11, 250
- D. $33, 750
Answer: C
NEW QUESTION # 111
Which of the following statements accurately describes the responsibility of the internal audit activity regarding IT governance?
1. The internal audit activity does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2. The internal audit activity must assess whether the IT governance of the organization supports the organization's strategies and objectives.
3. The internal audit activity may assess whether the IT governance of the organization supports the organization's strategies and objectives.
4. The internal audit activity may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.
- A. 1 only.
- B. 3 and 4.
- C. 2 and 4.
- D. 4 only.
Answer: A
NEW QUESTION # 112
Which of the following is a second line of defense in effective risk management and control?
- A. Purchasing department.
- B. Compliance department.
- C. Credit department.
- D. Internal audit department.
Answer: B
NEW QUESTION # 113
Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?
- A. Observation.
- B. Surveys.
- C. Workshops.
- D. Interviews.
Answer: B
NEW QUESTION # 114
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. 2 and 3.
- C. 2 and 4.
- D. 1 and 3.
Answer: B
NEW QUESTION # 115
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?
- A. Recommending accountability for risk management.
- B. Providing assurance that risks are evaluated correctly.
- C. Supporting managers to identify ways to mitigate risks.
- D. Evaluating risk management processes.
Answer: A
NEW QUESTION # 116
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. 2 and 3.
- B. 3 and 4.
- C. 1 and 4.
- D. 1 and 3.
Answer: D
NEW QUESTION # 117
A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?
- A. Evaluate the adequacy and effectiveness of the organization's governance activities.
- B. Oversee the establishment and administration of an effective risk management program.
- C. Assist management in implementing recommended control improvements.
- D. Continuously monitor the organization's overall risk activities in relation to its risk appetite.
Answer: B
NEW QUESTION # 118
An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management.
Which of the following correctly identifies the type of evidence this information represents?
- A. Competent, documentary evidence of future cash flow changes within the organization.
- B. Competent, corroborative evidence of future working capital requirements.
- C. Sufficient, circumstantial evidence of the future solvency of the organization.
- D. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
Answer: A
NEW QUESTION # 119
Which of the following would not be a red flag for fraud?
- A. A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager's salary.
- B. A weak control environment has been accepted by management to encourage creativity.
- C. Several recent, large expenditures to a new vendor have not been documented.
- D. New employees occasionally fail to meet established project deadlines due to staffing shortages.
Answer: D
NEW QUESTION # 120
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. Stakeholders will have more assurance that the risks are assessed consistently.
- B. Management will be able to reduce inherent risk because they will have a better understanding of risk.
- C. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
- D. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.
Answer: A
NEW QUESTION # 121
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. 2 and 4.
- B. 2 and 3.
- C. 1 and 4.
- D. 1 and 3.
Answer: A
NEW QUESTION # 122
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