Best Quality IIA-CRMA Exam Questions IIA Test To Gain Brilliante Result!
Preparations of IIA-CRMA Exam 2021 CRMA Certification Unlimited 285 Questions
NEW QUESTION 38
A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?
- A. Individual objectivity.
- B. Organizational independence.
- C. Due professional care.
- D. Individual independence.
Answer: C
NEW QUESTION 39
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?
- A. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.
- B. Management may be concerned about its reputation in the financial markets.
- C. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.
- D. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.
Answer: A
NEW QUESTION 40
Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?
- A. They are useful in assessing risk.
- B. They require yes/no responses to specific questions, not open-ended responses.
- C. They do not capture all controls that may exist.
- D. They serve as a reminder of what controls should exist in a process.
Answer: C
NEW QUESTION 41
Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?
- A. Reporting objectives.
- B. Strategic objectives.
- C. Operational objectives.
- D. Compliance objectives.
Answer: C
NEW QUESTION 42
An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?
- A. The inherent risk is lower than or equal to the risk tolerance.
- B. The residual risk is lower than or equal to the risk appetite.
- C. The residual risk is higher than or equal to the risk appetite.
- D. The inherent risk is higher than or equal to the risk tolerance.
Answer: B
NEW QUESTION 43
An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?
- A. The gross margin has decreased.
- B. The gross margin has increased.
- C. The division produced fewer items this year than in prior years.
- D. Cash or accounts receivable has decreased.
Answer: D
NEW QUESTION 44
Which of the following is an example of a directive control?
- A. Automated reconciliations.
- B. Segregation of duties.
- C. Exception reports.
- D. Incentive compensation plans.
Answer: D
NEW QUESTION 45
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
- A. A flowchart.
- B. A risk and control matrix.
- C. A process narrative.
- D. A walk-through.
Answer: B
NEW QUESTION 46
Which of the following is most likely to be considered a control weakness?
- A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
- B. Buyers promptly update the official vendor listing as new supplier sources become known.
- C. Department managers initiate purchase requests that must be approved by the plant superintendent.
- D. Purchase orders are typed by the purchasing department using prenumbered forms.
Answer: B
NEW QUESTION 47
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.
- A. 1, 2, and 3 only
- B. 1, 2, 3, and 4
- C. 2 and 3 only
- D. 1 and 4 only
Answer: A
NEW QUESTION 48
What type of risk management strategy is being employed when an organization installs two firewalls to provide protection from unauthorized access to the network?
- A. Sharing the risk that either firewall could be compromised by hackers.
- B. Diversifying the risk that network access will not be available to legitimate, authorized users.
- C. Accepting the risk that there may be attempts at unauthorized access to the network.
- D. Avoiding the risk of having a direct network connection to un-trusted networks.
Answer: B
NEW QUESTION 49
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 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.
- C. The internal audit activity's plan for resource allocation.
- D. The number of audits from the annual internal audit plan that were completed last year.
Answer: B
NEW QUESTION 50
Which of the following is true regarding the use of a formal risk management framework?
1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.
- A. 1.3, and 4.
- B. 1,2, and 4.
- C. 1.2, and 3.
- D. 2. 3, and 4.
Answer: B
NEW QUESTION 51
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 4.
- D. 2 and 3.
Answer: C
NEW QUESTION 52
During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?
- A. The IIA's Code of Ethics.
- B. Internal audit charter.
- C. Definition of Internal Auditing.
- D. MA Standards.
Answer: B
NEW QUESTION 53
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