IIA-CRMA Self-Study Guide for Becoming an Certification in Risk Management Assurance (CRMA) Exam Expert [Q105-Q119] – IT Certification Exam Questions & Answers

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IIA-CRMA Self-Study Guide for Becoming an Certification in Risk Management Assurance (CRMA) Exam Expert

IIA-CRMA Study Guide Realistic Verified IIA-CRMA Dumps

QUESTION 105
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.

1 and 2.

1 and 3.

2 and 4.

3 and 4.

QUESTION 106
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.

3 only

1 and 2 only

2 and 3 only

1, 2, and 3

QUESTION 107
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.

1 and 2.

1 and 4.

2 and 3.

2 and 4.

QUESTION 108
Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management’s decision is least plausible?

Management may be concerned about its reputation in the financial markets.

Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.

Management may perceive that having quarterly financial information examined by the internal auditors enhances the information’s value to internal decision making.

QUESTION 109
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.

1 and 2.

1 and 3.

2 and 3.

2 and 4.

QUESTION 110
Which of the following is an example of a transaction-level control?

Human resource policies.

Tone at the top.

Reconciliations of primary accounts.

Inventory counts.

QUESTION 111
While reviewing first quarter sales transactions, an internal auditor discovered that 10 invoices for a new customer had not been posted into the accounts receivable subsidiary ledger. Those 10 invoices were listed in an error report automatically generated by the sales processing system. The system had rejected the invoices because the customer’s account number was not found in the customer master file. In this scenario, which of the following controls was lacking?

Corrective control.

Preventive control.

Detective control.

Directive control.

QUESTION 112
Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
1. Professional certification, license, or other recognition of the engineer’s competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.

1 and 4 only

2 and 3 only

3 and 4 only

1, 2, and 4 only

QUESTION 113
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?

Terminate the audit engagement in full because an operational audit will not be productive without the client’s cooperation.

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.

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.

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.

QUESTION 114
Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?
1. Periodically reviewing the vendor list for unusual vendors and addresses.
2. Segregating duties for amount purchasing, receiving, shipping, and accounting.
3. Validating sequential integrity of purchase orders.
4. Verifying the validity of invoices with post office box addresses.

1 and 2 only

3 and 4 only

1, 2, and 4 only

1, 2, 3, and 4

QUESTION 115
In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

The CAE would need to procure external services to deliver the internal audit assurance program.

There is no expertise within the internal audit team for detecting and investigating fraud.

There is no expertise within the internal audit team for auditing an IT engagement.

There is no available expertise on the internal audit team to perform a consulting engagement.

QUESTION 116
After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

To determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor’s previous employer used, without receiving permission to do so.

At the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.

In preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer’s treasury function.

In the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization’s database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.

QUESTION 117
Which of the following scenarios best illustrates the principle of due professional care?

An internal auditor evaluates the significant risks arising from a consulting engagement.

An internal auditor declares that he would have a conflict of interest in providing planned audit support.

An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.

An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

QUESTION 118
Which of the following would not be a red flag for fraud?

Several recent, large expenditures to a new vendor have not been documented.

A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager’s salary.

A weak control environment has been accepted by management to encourage creativity.

New employees occasionally fail to meet established project deadlines due to staffing shortages.

QUESTION 119
Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?

Strategic objectives.

Operational objectives.

Reporting objectives.

Compliance objectives.

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IT Certification Exam Questions & Answers

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