IIA-CRMA-ADV Exam Training Practice Tests (IIA Certification in Risk Management Assurance)]

Question 1

Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

A. Internal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization. B. Internal auditor integrity enables the internal audit activity to be able to demonstrate independence. C. Internal auditor integrity enables users of internal auditors' work to make important business decisions. D. Internal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.

Correct Answer: C

Question 2

A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annua snowfall for the coming winter. Which of the following best describes this type of risk?

A. Inherent. B. Net. C. Residual. D. Accepted.

Correct Answer: A

Question 3

Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?

A. The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit. B. The audit manager conducts an internal quality assessment of the internal audit activity's adherence to the Standards. C. The internal auditor reviews the physical access to merchandise during an inventory count. D. The board approves the annual performance evaluation of the chief audit executive.

Correct Answer: C

Question 4

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. 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. C. If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework. D. The internal audit activity should have appropriate knowledge and competence to conduct an asses
.......framework.

Correct Answer: D

Question 5

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. 1,2, and 3. B. 1 and 2 only. C. 4 only. D. 3 and 4.

Correct Answer: D

Question 6

An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

A. Lower obsolete stock disposal. B. Lower sales volume. C. Higher inventory turnover. D. Higher operating margin.

Correct Answer: B

Question 7

Which of the following must be in existence as a precondition to developing an effective system of internal controls?

A. A risk assessment process. B. An information and communication process. C. A strategic objective-setting process. D. A monitoring process.

Correct Answer: A

Question 8

Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?

A. A risk and control matrix. B. A process narrative. C. A flowchart. D. A walk-through.

Correct Answer: A

Question 9

Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

A. Business acumen. B. Governance, risk, and control. C. Internal audit delivery. D. Performance management.

Correct Answer: D

Question 10

Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?

A. The auditor tested samples of transactions to test the cash function's process flows. B. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale. C. The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization. D. After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.

Correct Answer: D

Question 11

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. Definition of Internal Auditing. B. The IIA's Code of Ethics. C. Internal audit charter. D. MA Standards.

Correct Answer: C

Question 12

According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?

A. An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design. B. An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year. C. An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager. D. An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.

Correct Answer: A

IIA Certification in Risk Management Assurance - IIA-CRMA-ADV Exam Practice Test