Aug-2022 IIA-CRMA Study Material, Preparation Guide and PDF Download
Free IIA-CRMA Certification Sample Questions with Online Practice Test
A brief introduction of the IIA, with a focus on the IIA-CRMA Exam:
The IIA is a worldwide organization that serves the risk profession. It was founded as the Institute of Insurance Appraisers (IIA) in 1913 and is now headquartered in Charlotte, North Carolina. The IIA offers a variety of professional development opportunities, including CPE and continuing education, as well as an array of ethics courses for those joining or renewing their membership. The IIA maintains an open and objective roster of advisors and meeting locations around the globe. This helps its members make contact with others in similar professions and gather information about any regulations, related issues, news, and events.
The IIA-CRMA Certification is a worldwide credential that demonstrates proficiency as a risk practitioner. It is the improvisation that the IIA issued a credential that specializes in risk management planning and assurance. This has been developed on the basis of the experience gained from over 50 years of activities by different professional bodies, government bodies, and private institutions around the world. This expertise has led to a unique set of requirements for this certification which are based on expertise in risk management planning and assurance, as well as on training and knowledge on these areas by experts from these institutions. The core external exam is part of the accreditation method. IIA-CRMA exam dumps is the advisor which will change the degree and rates of your profession.
NEW QUESTION 152
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?
- A. Logic test.
- B. Balancing control activities.
- C. Data integrity tests.
- D. Check digits.
Answer: A
NEW QUESTION 153
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?
- A. Identify key stakeholders and their expectations.
- B. Determine the organization's overall risk appetite.
- C. Delegate authority to members of senior management.
- D. Establish a governance committee.
Answer: A
NEW QUESTION 154
Which of the following statements is true regarding assurance services provided to clients outside of the organization?
- A. Assurance services for outside clients are not covered under the internal audit charter.
- B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
- C. The nature of assurance services for outside clients should be defined in the internal audit charter.
- D. The nature of assurance services for outside clients is the same as for internal clients.
Answer: C
NEW QUESTION 155
An internal auditor is conducting an engagement in the accounts payable department, which includes expressing an opinion at the micro level. According to IIA guidance, which of the following statements is true regarding micro-level opinions?
1. They are most effective when using a combination of current and prior engagement findings to draw conclusions.
2. They typically are based on defined procedures such as those found in an accounts payable reconciliation process.
3. They are discrete and not normally shared with senior management or the board.
4. They can rely on evidence taken from the work of other assurance activities across the organization.
- A. 1 and 3.
- B. 1 and 2.
- C. 3 and 4.
- D. 2 and 3.
Answer: D
NEW QUESTION 156
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. Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.
- C. Not allow the audit manager to hire the contractor, as it would be a conflict of interest.
- D. 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.
Answer: A
NEW QUESTION 157
A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?
- A. They are in violation of neither the IIA Code of Ethics nor the Standards.
- B. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
- C. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.
- D. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
Answer: A
NEW QUESTION 158
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?
- A. The chief audit executive reports both functionally and administratively to the CEO.
- B. An independent third party has assessed the organization's system of internal controls to be adequate and effective.
- C. The internal audit charter is drafted properly and approved by the appropriate parties.
- D. The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
Answer: A
NEW QUESTION 159
A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?
- A. She may participate, but she must be supervised by the auditor in charge.
- B. She may participate for training purposes, to build her knowledge of the IAA.
- C. She may participate, but only after she has completed one year with the IAA.
- D. She may participate, because she did not previously work in the Human Resources Department.
Answer: D
NEW QUESTION 160
Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?
- A. Discussing periodic reports of ethical breaches.
- B. Authorizing an investigation of an unsafe product.
- C. Requesting a private meeting with senior management, without the presence of the chief audit executive.
- D. Intervening during an audit involving ethical wrongdoing.
Answer: D
NEW QUESTION 161
In which of the following functions would fraud be most likely to occur?
- A. Maintaining custody of inventory records.
- B. Approving changes to employee records.
- C. Preparing customer statements.
- D. Collecting payments on accounts.
Answer: D
NEW QUESTION 162
Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?
- A. The number and types of people involved in the assessment, costs, and duration of the QAIP
- B. The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.
- C. The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.
- D. The scope, findings, risks, recommendations, and agreed-upon improvement actions.
Answer: D
NEW QUESTION 163
Which of the following is most likely to function as a directive control?
- A. Security dogs.
- B. Insurance claims.
- C. Alert employees.
- D. Cycle counts.
Answer: C
NEW QUESTION 164
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 165
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. 2 and 3 only
- B. 3 and 4 only
- C. 1, 2, and 4 only
- D. 1 and 4 only
Answer: C
NEW QUESTION 166
Which segregation of duties would best reduce the risk of payroll fraud?
- A. Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.
- B. Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.
- C. Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee's bank account.
- D. Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.
Answer: B
NEW QUESTION 167
The security department uncovered what appears to be a complex fraud in the accounting department. The CEO has requested the internal audit activity to investigate the fraud. If the internal audit staff lacks the expertise to conduct the investigation, how should the chief audit executive proceed?
- A. Select a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.
- B. Proceed with the investigation, as internal auditors are not required to have fraud expertise.
- C. Outsource the sensitive investigation to a third-party consultant with fraud expertise.
- D. Disclose the deficiency, and request that the investigation be reassigned to the first line of defense.
Answer: C
NEW QUESTION 168
Which of the following control methods is effective in reducing the risk of purchasing-scheme fraud?
1. Periodically reviewing the vendor list for unusual vendors and addresses.
2. Segregating duties for amount purchasing, receiving, shipping, and accounting.
3. Validating sequential integrity of purchase orders.
4. Verifying the validity of invoices with post office box addresses.
- A. 1, 2, and 4 only
- B. 1 and 2 only
- C. 1, 2, 3, and 4
- D. 3 and 4 only
Answer: D
NEW QUESTION 169
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?
- A. Senior management.
- B. Board of directors.
- C. Internal audit activity.
- D. All employees.
Answer: B
NEW QUESTION 170
An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization's investments. Which of the following is the most appropriate course of action regarding the auditor's use of this functionality?
- A. The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.
- B. The auditor should perform a manual recalculation of several results to validate and document the results.
- C. The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.
- D. The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.
Answer: B
NEW QUESTION 171
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?
- A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
- B. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
- C. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
- D. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.
Answer: A
NEW QUESTION 172
Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?
- A. The CAE completes an engagement working paper checklist.
- B. The CAE initials and dates every working paper after it has been reviewed.
- C. The CAE prepares a memorandum discussing the results of the working paper review.
- D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.
Answer: D
NEW QUESTION 173
Which of the following best describes the assessment of risks?
- A. Assess the likelihood and/or impact of risk on the achievement of organizational objectives.
- B. Assess alternative strategies to reduce or eliminate major risks.
- C. Assess the amount of risk an organization can accept while pursuing its objectives.
- D. Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.
Answer: A
NEW QUESTION 174
An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?
- A. Require a manager, who is independent of the system and who cannot change the table, to authorize and sign-off on any employee pay changes.
- B. Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.
- C. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.
- D. Ensure that adequate edit and reasonableness checks are built into the automated system.
Answer: A
NEW QUESTION 175
To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity. According to IIA guidance, which of the following statements is true regarding these circumstances?
- A. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.
- B. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.
- C. The auditor should obtain the CAE's approval as to the nature and scope of the duties she is permitted to perform during her temporary assignment.
- D. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.
Answer: C
NEW QUESTION 176
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