Best Quality IIA IIA-CRMA Exam Questions ValidBraindumps Realistic Practice Exams [2022]
Critical Information To Certification in Risk Management Assurance (CRMA) Exam Pass the First Time
NEW QUESTION 132
An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?
- A. The external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.
- B. The external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.
- C. The external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.
- D. The external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.
Answer: C
NEW QUESTION 133
According to IIA guidance, which of the following statements is true?
- A. IT risks and related controls are operational and best identified using a bottom-up approach.
- B. The overall focus of the framework is on significant controls in all critical IT applications.
- C. Risks in IT processes are best mitigated by individual controls.
- D. Control process risks are found at multiple layers of the IT environment.
Answer: D
NEW QUESTION 134
According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?
- A. Control activities.
- B. Monitoring.
- C. Risk assessment.
- D. Control environment.
Answer: B
NEW QUESTION 135
According to IIA guidance, which of the following statements about working papers is false?
- A. They provide support for communication to third parties.
- B. They contribute to development of the internal audit staff.
- C. They demonstrate compliance with auditing standards.
- D. They assist in the implementation of recommendations.
Answer: D
NEW QUESTION 136
Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?
- A. The internal audit activity may delegate to nonaudit IT specialists the responsibility of determining whether personal information has been secured adequately and data protection controls are sufficient.
- B. If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.
- C. The internal audit activity should have appropriate knowledge and competence to conduct an asses .......framework.
- D. Because the audit committee is ultimately responsible for ensuring that appropriate control processes are in place to mitigate risks associated with personal information, the internal audit activity is C. required to conduct privacy assessments.
Answer: C
NEW QUESTION 137
According to IIA guidance, which of the following is the best example of a system application control?
- A. A system development life cycle control.
- B. A physical security control over a data center.
- C. A program change management control.
- D. An input control over data integrity.
Answer: D
NEW QUESTION 138
Which of the following would not be considered part of preliminary survey of an engagement area?
- A. Sampling scope.
- B. Analytical reviews.
- C. Interviews with individuals affected by the entity.
- D. Functional walk through test.
Answer: A
NEW QUESTION 139
A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO).
Which of the following would impair the internal audit function's independence?
- A. The CFO administers the annual evaluation process for the internal auditors.
- B. The CFO provides feedback on the CAE's audit reports.
- C. The CFO manages the accounting of the budget for the internal audit function.
- D. The CFO determines the scope of internal audit work in the accounting department.
Answer: D
NEW QUESTION 140
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.
- A. 3 and 4 only
- B. 2 and 3 only
- C. 1, 2, and 4 only
- D. 1 and 4 only
Answer: C
NEW QUESTION 141
According to IIA guidance, when preparing the charter for the internal audit activity, the chief audit executive (CAE), board, and senior management should agree on which of the following?
1. The standards to be used by the internal audit activity.
2. The internal audit activity's code of ethics.
3. The CAE's reporting line.
4. The internal audit activity's responsibilities.
- A. 1 and 2 only.
- B. 1,2, and 3.
- C. 3 and 4.
- D. 4 only.
Answer: C
NEW QUESTION 142
According to IIA guidance, which of the following statements is true regarding the reporting of results from an external quality assessment of the internal audit activity?
- A. The external assessment results are reported upon completion in confidence directly to the board, and senior management is advised only of the recommendations and improvement action plans.
- B. The external assessment results are communicated upon completion to senior management and the board, but action plans for recommended improvements do not have to be reported.
- C. The results of self-assessments with independent external validation are shared with the board upon completion, and monitoring of recommended improvements must be reported monthly.
- D. The requirements for reporting quality assessment results are the same for external assessments and self-assessments with independent external validation.
Answer: C
NEW QUESTION 143
An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?
1. Proficiency in analyzing key IT risks and controls.
2. The ability to recognize significant deviations from good business practices.
3. Knowledge of key indicators of fraud in tax reporting.
4. The ability to recognize the existence of problems related to tax accounting.
- A. 3 and 4 only.
- B. 1,2, 3, and 4.
- C. 1 and 4 only.
- D. 2, 3, and 4 only.
Answer: A
NEW QUESTION 144
Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
- A. What level of noncompliance is acceptable.
- B. Which sampling methodology to select for testing.
- C. Which fields to examine on each invoice.
- D. Whether an individual expenditure is allowable.
Answer: A
NEW QUESTION 145
According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?
1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement's objectives.
- A. 2, 3, and 4
- B. 1, 2, and 3
- C. 1, 2, and 4
- D. 1, 3, and 4
Answer: C
NEW QUESTION 146
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 number of audits from the annual internal audit plan that were completed last year.
- B. The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.
- C. The qualifications and independence of the assessment Team.
- D. The internal audit activity's plan for resource allocation.
Answer: B
NEW QUESTION 147
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?
- A. Senior management and management of the audited area.
- B. Senior management and the external auditors.
- C. The audit committee and senior management.
- D. The audit committee and the external auditors.
Answer: C
NEW QUESTION 148
Which of the following is the most common way that occupational fraud is detected?
- A. Whistleblower hotline.
- B. Internal audits.
- C. External audits.
- D. Key controls.
Answer: A
NEW QUESTION 149
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. Soft skills in communication, negotiation, and collaboration.
- B. Technical skills in the area under review.
- C. Professional qualifications and certification in internal auditing.
- D. Confidentiality and independence.
Answer: A
NEW QUESTION 150
While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?
- A. Immediately withdraw from the audit engagement.
- B. Disclose in the engagement final communication that the relative is a customer.
- C. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.
- D. Proceed with the audit engagement, but do not include the relative's information.
Answer: C
NEW QUESTION 151
Which of the following activities is most likely to require a fraud specialist to supplement the knowledge and skills of the internal audit activity?
- A. Completing a process review to improve controls to prevent fraud.
- B. Planning an engagement of the area in which fraud is suspected.
- C. Employing audit tests to detect fraud.
- D. Interrogating a suspected fraudster.
Answer: C
NEW QUESTION 152
According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?
- A. It is required to demonstrate that effective engagement supervision has occurred.
- B. It ensures that an appropriate chain of evidence is maintained through the workpapers.
- C. It increases the likelihood of obtaining the audit client's agreement with the results.
- D. It helps ensure that appropriate professional judgments and conclusions are made.
Answer: D
NEW QUESTION 153
Which of the following is the most common method of fraud detection?
- A. Unannounced audits or reviews of programs or departments.
- B. Tips received from employees or citizens.
- C. Analytical reviews of high-risk areas.
- D. Detective controls built into the daily processes.
Answer: B
NEW QUESTION 154
According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?
- A. Controlling access to engagement records, including access by senior management.
- B. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
- C. Developing retention requirements for engagement records that are consistent with organizational guidelines.
- D. Rating each engagement record to assess its relevance and accessibility for the organization's board.
Answer: D
NEW QUESTION 155
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