[Q109-Q126] Pass IIA-CRMA Exam in First Attempt Guaranteed 100% Cover Real Exam Questions [Nov-2023]

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Pass IIA-CRMA Exam in First Attempt Guaranteed 100% Cover Real Exam Questions [Nov-2023]

Valid IIA-CRMA test answers & IIA IIA-CRMA exam pdf

Q109. 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?

The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.

The CAE may conduct audits in the purchasing department during the auditor’s temporary assignment.

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.

Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.

Q110. Which of the following scenarios exemplifies a potential internal control weakness?

The same employee who receives cash from customers prepares a prelisting of cash receipts.

The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.

The same employee who restrictively endorses checks received from customers prepares the bank’s check deposit slips.

The same employee who makes deposits at the bank prepares the monthly bank reconciliation.

Q111. What is the primary purpose of a fishbone diagram?

To depict the areas of responsibility for departments in an organization.

To plan and control complex projects, such as internal audits.

To represent the frequencies of adverse conditions in a given process.

To identify the possible causes of adverse conditions.

Q112. Why are preventative controls generally preferred to detective controls?

Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.

Because preventive controls are more sensitive and identify more exceptions than detective controls.

Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.

Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.

Q113. A chief audit executive (CAE) is reviewing the internal audit activity’s performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity’s quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

The overall effectiveness of the internal audit activity’s periodic self assessments.

The type of audit productivity and performance statistics reported.

The adequacy of the day-to-day supervision and review process.

The scope and frequency of external assessments.

Q114. A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director’s independence?

Preparing the financial statements for the company’s defined contribution plan.

Performing a pre-implementation review of the company’s payroll application.

Providing the COBIT framework as a possible IT management tool.

Reviewing the company’s policy for foreign currency translation adjustments for compliance with accounting standards.

Q115. Which of the following is a valid statement about the use of visual observations during an audit engagement?
1. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.
2. Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement.
3. Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.
4. Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization’s senior management.

1 and 2 only

1 and 4 only

2 and 3 only

3 and 4 only

Q116. Which of the following enhances the independence of the internal audit activity?

The chief audit executive (CAE) approves the annual internal audit plan.

The CAE administratively reports to the board.

The audit committee approves the CAE’s annual salary increase.

The chief executive officer approves the internal audit charter.

Q117. According to The MA Global Internal Audit Competency Framework, which of the following areas of training would best assist the internal audit activity in improving its use of tools and techniques?

Negotiation and conflict resolution.

Project management.

Financial accounting.

Ethics and fraud.

Q118. An internal auditor finds during an engagement that payment for the organization’s general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.
Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?

Confidentiality.

Objectivity.

Integrity.

Competency.

Q119. While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.

1 and 2.

1 and 3.

2 and 3.

2 and 4.

Q120. According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?

The training courses necessary to enhance the internal auditor’s knowledge, skills, and other competencies.

The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.

The use of innovative technology and data analysis techniques.

The extent of work needed to achieve the engagement’s objectives.

Q121. Which of the following risk management activities is most appropriate for an internal auditor to undertake?

Impose risk management processes.

Coordinate risk management activities.

Implement risk responses on management’s behalf.

Review the management of key risks.

Q122. According to IIA guidance, which of the following is the best example of a system application control?

A physical security control over a data center.

A system development life cycle control.

A program change management control.

An input control over data integrity.

Q123. 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.

1 and 4 only

2 and 3 only

3 and 4 only

1, 2, and 4 only

Q124. A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

The CAE should not interfere because there is no evidence that a conflict of interest has occurred.

The CAE should remind the senior auditor of his obligation to be objective and impartial.

The CAE should change the senior auditor’s assignment and take corrective action for the auditor’s failure to disclose the conflict of interest.

The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.

Q125. Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

Evaluating risk management processes.

Recommending accountability for risk management.

Providing assurance that risks are evaluated correctly.

Supporting managers to identify ways to mitigate risks.

Q126. 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?

If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.

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.

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.

The internal audit activity should have appropriate knowledge and competence to conduct an asses …….framework.