[Sep 05, 2021] Get Free Updates Up to 365 days On Developing IIA-CRMA Braindumps
Best Quality IIA IIA-CRMA Exam Questions
NEW QUESTION 142
According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?
1. Advocating the establishment of a risk management function.
2. Identifying and evaluating significant risk exposures during audit engagements.
3. Developing a risk response for the organization if there is no chief risk officer.
4. Benchmarking risk management activities with other organizations.
5. Documenting risk mitigation strategies and techniques.
- A. 1.2, and 3 only.
- B. 4 and 5 only.
- C. 1.2. 4. and 5 only.
- D. 2. 3. 4. and 5 only.
Answer: C
NEW QUESTION 143
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. Search for gaps in check numbers.
- B. Review raw material purchase quantities.
- C. Compare vendor summaries.
- D. Check inventory levels.
Answer: D
NEW QUESTION 144
Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?
- A. The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.
- B. Security cameras that monitor cash handling at the register are not functioning.
- C. The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.
- D. Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
Answer: A
NEW QUESTION 145
A large trucking organization wants to reduce traffic accidents by improving its system of internal controls.
Which of the following controls is correctly classified?
1. Review of speeding violations to identify repetitive locations and drivers is an example of a preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.
- A. 1 and 4.
- B. 1 and 2.
- C. 2 and 3.
- D. 3 and 4.
Answer: B
NEW QUESTION 146
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?
- A. Acceptance of gifts policy.
- B. Risk management framework.
- C. Usage of IT system policy.
- D. Personal responsibility policy.
Answer: A
NEW QUESTION 147
Which of the following is a detective control strategy against fraud?
- A. Performing background checks on employees.
- B. Implementing a control self-assessment.
- C. Requiring employees to attend ethics training.
- D. Performing a surprise audit.
Answer: D
NEW QUESTION 148
When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.
4. Losing bidders are hired as subcontractors.
- A. 1 and 3.
- B. 1 only
- C. 2 only
- D. 2 and 4.
Answer: D
NEW QUESTION 149
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. Surveys.
- B. Interviews.
- C. Workshops.
- D. Observation.
Answer: A
NEW QUESTION 150
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 151
Which of the following actions does not violate the IIA Code of Ethics or Standards?
- A. An internal auditor disclosing details of an audit report to colleagues from a different organization.
- B. An internal auditor disclosing confidential information in response to a lawsuit.
- C. An internal auditor performing an audit on procedures that they were responsible for creating.
- D. An internal auditor performing an audit on an operation that they managed less than a year ago.
Answer: B
NEW QUESTION 152
Non-statistical sampling does not require which of the following?
- A. A smaller sample size than if selected using statistical sampling.
- B. The sample to be selected haphazardly.
- C. The sample to be representative of the population.
- D. Projecting the results to the population.
Answer: A
NEW QUESTION 153
In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?
- A. Maintaining industry-specific knowledge appropriate to the organization.
- B. Maintaining technical aspects of accounting standards and reporting processes.
- C. Understanding regulatory and legal framework and assessing its relevance.
- D. Assessing how IT contributes to organization objectives, risks, and relevance to audit.
Answer: C
NEW QUESTION 154
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 155
Which of the following best demonstrates the authority of the internal audit activity?
- A. Improving the integrity of information.
- B. Achieving engagement objectives.
- C. Suggesting alternatives to decision makers.
- D. Determining the scope of internal audit services.
Answer: D
NEW QUESTION 156
When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?
- A. The exposure to risks following management's risk responses.
- B. The amount of risk that an organization is willing to seek or accept.
- C. The extent and degree of interdependency for identified key risks.
- D. The boundaries established to manage the amount of risk taken.
Answer: A
NEW QUESTION 157
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?
- A. CAE meets privately with The board at least annually.
- B. CAE reports to the board regarding audit staff performance evaluation and compensation.
- C. CAE reviews and approves the annual audit plan.
- D. CAE meets privately with The CEO at least annually.
Answer: B
NEW QUESTION 158
Which of the following is an example of collusion?
- A. A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.
- B. An employee works with the IT manager to develop a program for identifying duplicate invoice payments.
- C. An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.
- D. A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.
Answer: D
NEW QUESTION 159
A candidate has applied for an entry level internal audit position. The candidate holds a CISA (Certified Information Systems Auditor) designation, and has six months of audit experience, but limited knowledge of accounting principles and techniques. According to the IIA guidance, which of the following is the most relevant reason for the chief audit executive to consider this candidate?
- A. The candidate's information systems knowledge and real-world experience in internal auditing.
- B. Other internal auditors possess sufficient knowledge of accounting principles and techniques.
- C. An entry level position does not require expertise in any particular area.
- D. Accounting skills can be learned over time with appropriate training.
Answer: A
NEW QUESTION 160
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.
- A. 1 and 3.
- B. 1 and 4.
- C. 2 and 4.
- D. 2 and 3.
Answer: C
NEW QUESTION 161
......
IIA Exam Practice Test To Gain Brilliante Result: https://www.fast2test.com/IIA-CRMA-premium-file.html
Tested Material Used To IIA-CRMA: https://drive.google.com/open?id=1E9Dwyi7bI9gRsQR2cZ0AhMmQmRqDxRf0