[Feb 11, 2025] Get New IIA-CRMA Practice Test Questions Answers [Q40-Q64]

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[Feb 11, 2025] Get New IIA-CRMA Practice Test Questions Answers

IIA-CRMA Dumps and Exam Test Engine

NO.40 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.

1 and 2.

1 and 3.

2 and 4.

3 and 4.

NO.41 An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

Statistical sampling only

Nonstatistical sampling only

A combination of both statistical and nonstatistical sampling.

Neither approach to testing the audit theory would be cost effective.

NO.42 Which of the following statements describes impairment to the internal auditor’s objectivity?

An internal auditor reviews a purchasing agent’s contract drafts prior to their execution.

An internal auditor reduces the scope of an audit engagement due to budget restrictions.

An internal auditor receives a promotional gift that is available to the organization’s employees.

An internal auditor performs an assessment of the operations for which he was recently responsible.

NO.43 The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?

Review notes of questions that arise during the review process must be retained.

Dating and initialing each workpaper provides evidence of review.

Workpaper review allows for staff training and development.

Workpapers may be amended during the review process.

NO.44 During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

Report the deviations immediately to the audit committee.

Gather additional information to determine the cause of the deviations.

Conclude that the budget was unreasonably set and accept the deviations.

Perform alternative forms of analytical procedures which provide no deviations.

NO.45 According to the COSO enterprise risk management framework, which of the following best describes the activity that helps ensure risk responses are carried out effectively?

Objective setting.

Control activities.

Information and communication.

Event identification.

NO.46 Management has asked the chief audit executive (CAE) to provide assurance on the organization’s automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?

Accept the assignment and use control self-assessment to complete the project.

Do not accept the assignment because the internal audit activity lacks the competency to perform the engagement with due professional care.

Accept the assignment and use an external provider with the necessary knowledge and skills to perform the engagement.

Accept the assignment if the engagement is included in the current audit plan, but inform senior management that the current audit staff does not have the knowledge and skills required.

NO.47 According to IIA guidance, which of the following statements about working papers is false?

They assist in the implementation of recommendations.

They provide support for communication to third parties.

They demonstrate compliance with auditing standards.

They contribute to development of the internal audit staff.

NO.48 Which of the following describes a key characteristic related to effective organizational communication?

Comprehensive supervisory and verification procedures.

A well-designed system of internal controls.

A culture of integrity and transparency.

Unique operating environments with varying complexity.

NO.49 Which of the following is a common type of payroll fraud?

Unauthorized overtime.

Fictitious employees.

Unearned bonuses or commissions.

Skimming.

NO.50 An internal auditor is conducting an assessment of the organization’s fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?
1. The organization uses an automated authority approval matrix to control payments.
2. The organization has a whistleblower hotline that is available to employees.
3. Annually, every manager completes a comprehensive fraud assessment of his or her department.
4. Annually, the organization reviews and communicates the code of expected behavior.

1 and 2.

1 and 3.

2 and 3.

2 and 4.

NO.51 Which of the following would most likely be considered a red flag for fraud?

An organization lacks a whistleblower hotline for reporting suspicious activity.

A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.

An employee in charge of payroll disbursements has rotated these duties with several colleagues.

An employee with significant personal debt is in charge of handling large wire transfers for the organization.

NO.52 According to IIA guidance, which of the following should be formally documented in the internal audit charter?

The internal audit activity’s responsibility for imposing risk management processes.

The internal audit activity’s responsibility for the organization’s governance framework.

The nature of consulting services provided by the internal audit activity.

The budgeting process for the internal audit activity.

NO.53 Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?

Which sampling methodology to select for testing.

Which fields to examine on each invoice.

Whether an individual expenditure is allowable.

What level of noncompliance is acceptable.

NO.54 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.

NO.55 The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding acceptance of the money is correct?

Accepting the money would be prohibited only if it were non-customary.

Accepting the money would violate the IIA Code of Ethics.

Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization’s code of conduct.

Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.

NO.56 Which of the following is the best way to detect fraud?

Conduct anti-fraud training.

Perform background investigations.

Implement process controls.

Activate a whistleblower hotline.

NO.57 According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization’s operations?

The services must be aligned with those defined in the internal audit charter.

The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.

The services may preclude assurance services from the consulting engagement.

The services impose no responsibility to communicate information other than to the engagement client.

NO.58 According to IIA guidance, which of the following statements regarding the internal audit charter is true?

Senior management should approve the charter before it is submitted to the board.

The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.

The charter should define the consulting services that the internal audit activity is permitted to perform.

The CEO periodically should assess whether the terms of the charter continue to be adequate.

NO.59 A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

Logic test.

Check digits.

Data integrity tests.

Balancing control activities.

NO.60 An organization’s chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.

Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project’s timeframe as outlined by the audit committee.

Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

NO.61 Which of the following statements is true regarding assurance services provided to clients outside of the organization?

Assurance services for outside clients are not covered under the internal audit charter.

Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

The nature of assurance services for outside clients should be defined in the internal audit charter.

The nature of assurance services for outside clients is the same as for internal clients.

NO.62 Which of the following types of fraud includes embezzlement?

Fraudulent statements.

Bribery.

Misappropriation of assets.

Corruption.

NO.63 A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization’s practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?

Communication.

Persuasion and collaboration.

Business acumen.

Governance, risk, and control.

NO.64 Which of the following is a weakness of observation as audit evidence?

It cannot be used to test the completeness assertion.

It cannot be used to test the existence assertion.

It cannot be used to test the occurrence assertion.

It cannot be relied upon because the evidence is not persuasive.