2024 Valid IIA-CRMA-ADV FREE EXAM DUMPS QUESTIONS & ANSWERS
Free IIA-CRMA-ADV Exam Braindumps IIA Pratice Exam
NEW QUESTION # 25
Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?
- A. The internal audit activity must ensure management actions have been implemented effectively or risk accepted.
- B. Auditors cannot participate in an assurance engagement of a function for which they previously performed a consulting engagement.
- C. The internal audit activity has to ensure team members' objectivity is not impaired.
- D. The scope and objective of the engagement is agreed upon based on the engagement client's needs.
Answer: B
NEW QUESTION # 26
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?
- A. Accepting the money would be prohibited only if it were non-customary.
- B. Because the contract was signed before the money was offered, accepting the money would not violate the IIA Code of Ethics.
- C. Accepting the money would violate the IIA Code of Ethics.
- D. Because the CIA is not acting as an internal auditor, accepting the money would be governed only by the organization's code of conduct.
Answer: C
NEW QUESTION # 27
Which of the following enhances the independence of the internal audit activity?
- A. The audit committee approves the CAE's annual salary increase.
- B. The chief executive officer approves the internal audit charter.
- C. The chief audit executive (CAE) approves the annual internal audit plan.
- D. The CAE administratively reports to the board.
Answer: A
NEW QUESTION # 28
Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?
- A. Observation.
- B. Analytical review.
- C. Inquiry.
- D. Document verification.
Answer: B
NEW QUESTION # 29
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?
- A. Usage of IT system policy.
- B. Personal responsibility policy.
- C. Acceptance of gifts policy.
- D. Risk management framework.
Answer: C
NEW QUESTION # 30
Which of the following controls is not appropriate for sales in a manufacturing organization?
- A. Sales department approval is required for credit sales transactions.
- B. Customers' orders are recorded promptly.
- C. Goods shipped are matched with valid customer orders.
- D. Goods returned are inspected for damage by the receiving department for proper disposition.
Answer: A
NEW QUESTION # 31
Non-statistical sampling does not require which of the following?
- A. The sample to be selected haphazardly.
- B. The sample to be representative of the population.
- C. Projecting the results to the population.
- D. A smaller sample size than if selected using statistical sampling.
Answer: D
NEW QUESTION # 32
During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?
- A. Professional qualifications and certification in internal auditing.
- B. Technical skills in the area under review.
- C. Confidentiality and independence.
- D. Soft skills in communication, negotiation, and collaboration.
Answer: D
NEW QUESTION # 33
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 extent and degree of interdependency for identified key risks.
- C. The amount of risk that an organization is willing to seek or accept.
- D. The boundaries established to manage the amount of risk taken.
Answer: A
NEW QUESTION # 34
An IT contractor applied for an internal audit position at a bank. The contractor worked for the bank's IT security manager two years ago. If the audit manager interviewed the contractor and wants to extend a job offer, which of the following actions should the chief audit executive pursue?
- A. Allow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.
- B. Allow the audit manager to hire the contractor, but state that the individual is not allowed to work on IT security audits for one year.
- C. Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.
- D. Not allow the audit manager to hire the contractor, as it would be a conflict of interest.
Answer: A
NEW QUESTION # 35
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
- A. A flowchart.
- B. A process narrative.
- C. A walk-through.
- D. A risk and control matrix.
Answer: D
NEW QUESTION # 36
The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?
- A. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.
- B. The CAE may self-review his work, provided he discloses this practice in the final report.
- C. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.
- D. The CAE's work may be reviewed by any other experienced staff member within the IAA.
Answer: C
NEW QUESTION # 37
An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate).
Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?
- A. Acceptance sampling.
- B. Variability tolerance.
- C. Ratio estimation.
- D. Stratification.
Answer: C
NEW QUESTION # 38
In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?
- A. Understanding regulatory and legal framework and assessing its relevance.
- B. Maintaining technical aspects of accounting standards and reporting processes.
- C. Assessing how IT contributes to organization objectives, risks, and relevance to audit.
- D. Maintaining industry-specific knowledge appropriate to the organization.
Answer: A
NEW QUESTION # 39
A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?
- A. Move the CAE's functional reporting to the audit committee.
- B. Obtain full board approval of the internal audit activity's annual audit plan.
- C. Move the CAE's functional reporting to an executive who is not on the board.
- D. Appoint the CAE as a member of the board.
Answer: A
NEW QUESTION # 40
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. 2. 3. 4. and 5 only.
- B. 4 and 5 only.
- C. 1.2. 4. and 5 only.
- D. 1.2, and 3 only.
Answer: C
NEW QUESTION # 41
A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?
- A. Control environment.
- B. Information and communication.
- C. Commitment.
- D. Control activities.
Answer: A
NEW QUESTION # 42
Which of the following is an example of a directive control?
- A. Incentive compensation plans.
- B. Automated reconciliations.
- C. Segregation of duties.
- D. Exception reports.
Answer: A
NEW QUESTION # 43
Which of the following is the primary engagement responsibility of an entry-level internal auditor?
- A. Analysis.
- B. Leadership.
- C. Reporting.
- D. Documentation.
Answer: A
NEW QUESTION # 44
Which of the following professional development approaches would offer internal auditors the most opportunities to broaden their engagement experiences?
- A. Assign more experienced internal auditors to mentor the less experienced auditors.
- B. Rotate internal auditors among different engagement assignments.
- C. Appraise internal auditors' performance and competencies at least annually and issue constructive feedback.
- D. Send internal auditors to external trainings in advanced internal audit topics.
Answer: B
NEW QUESTION # 45
According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?
- A. Computerized information systems.
- B. Internal audit standards, procedures, and techniques.
- C. Fundamentals of accounting, economics, and finance.
- D. Management principles.
Answer: B
NEW QUESTION # 46
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