[Aug-2023] Verified IIA Exam Dumps with IIA-CRMA-ADV Exam Study Guide
Best Quality IIA IIA-CRMA-ADV Exam Questions Dumpexams Realistic Practice Exams [2023]
NEW QUESTION # 87
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. Management principles.
- D. Fundamentals of accounting, economics, and finance.
Answer: B
NEW QUESTION # 88
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. Internal audit activity.
- B. Board of directors.
- C. All employees.
- D. Senior management.
Answer: B
NEW QUESTION # 89
Which of the following does not need to be defined in the internal audit charter?
- A. The audit engagements to be performed during the upcoming year.
- B. The scope of internal audit activities.
- C. The internal audit activity's position within the organization.
- D. Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.
Answer: A
NEW QUESTION # 90
According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?
- A. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
- B. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
- C. Internal auditors are responsible for ensuring that fraud does not occur.
- D. Internal auditors should take a leading role in investigating all fraud-related cases.
Answer: B
NEW QUESTION # 91
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?
- A. Preparing the financial statements for the company's defined contribution plan.
- B. Performing a pre-implementation review of the company's payroll application.
- C. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.
- D. Providing the COBIT framework as a possible IT management tool.
Answer: A
NEW QUESTION # 92
Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?
- A. They serve as a reminder of what controls should exist in a process.
- B. They do not capture all controls that may exist.
- C. They require yes/no responses to specific questions, not open-ended responses.
- D. They are useful in assessing risk.
Answer: B
NEW QUESTION # 93
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 stakeholders to constantly question the work of the internal audit activity.
- C. Internal auditor integrity enables users of internal auditors' work to make important business decisions.
- D. Internal auditor integrity enables the internal audit activity to be able to demonstrate independence.
Answer: C
NEW QUESTION # 94
Which of the following are components of the ISO 31000 risk management process?
1. Setting the context.
2. Risk treatment.
3. Risk avoidance.
4. Communication.
- A. 3 and 4.
- B. 1,2, and 4.
- C. 2 and 3.
- D. 1 and 2 only.
Answer: D
NEW QUESTION # 95
According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?
1. Obtain and review all purchasing-related audit reports issued within the past year.
2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.
3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.
4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.
- A. 3 and 4.
- B. 1 and 2.
- C. 2 and 4.
- D. 1 and 3.
Answer: B
NEW QUESTION # 96
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. 3 and 4.
- B. 2 and 3.
- C. 1 and 3.
- D. 1 and 2.
Answer: B
NEW QUESTION # 97
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. Higher operating margin.
- B. Lower obsolete stock disposal.
- C. Lower sales volume.
- D. Higher inventory turnover.
Answer: C
NEW QUESTION # 98
Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?
- A. Review of records involving safety violations, filed by facility production employees.
- B. Questioning of facility management, including the facility safety officer.
- C. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
- D. Observation of the facility during operations.
Answer: D
NEW QUESTION # 99
Which of the following is most likely to enhance an internal auditor's objectivity?
- A. An auditor avoids conflicts of interest.
- B. An auditor performs his work free from interference.
- C. An auditor is unrestricted in determination of scope.
- D. An auditor is appropriately able to communicate results.
Answer: A
NEW QUESTION # 100
Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?
- A. Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.
- B. Internal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.
- C. Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.
- D. Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.
Answer: D
NEW QUESTION # 101
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
- A. A process narrative.
- B. A walk-through.
- C. A risk and control matrix.
- D. A flowchart.
Answer: C
NEW QUESTION # 102
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. The IIA's Code of Ethics.
- B. Internal audit charter.
- C. Definition of Internal Auditing.
- D. MA Standards.
Answer: B
NEW QUESTION # 103
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. Stratification.
- B. Variability tolerance.
- C. Acceptance sampling.
- D. Ratio estimation.
Answer: D
NEW QUESTION # 104
Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?
- A. Review and adjudicate all violations of the code of conduct.
- B. Implement a system of procedures to inform all employees of the code.
- C. Lead the committee responsible for the oversight of the code.
- D. Act as an adviser to the committee responsible for reviewing violations of the code.
Answer: D
NEW QUESTION # 105
If appropriate safeguards exist, which of the following is considered a legitimate internal audit role within risk management at an organization?
- A. Taking accountability for risk management.
- B. Imposing risk management processes.
- C. Providing consolidated reporting on risks.
- D. Making decisions on risk responses.
Answer: C
NEW QUESTION # 106
Which of the following situations is most likely to impair internal audit objectivity?
- A. According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
- B. An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
- C. An internal auditor performs an audit in a department that is led by the auditor's close friend.
- D. An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
Answer: C
NEW QUESTION # 107
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. Establish a governance committee.
- C. Determine the organization's overall risk appetite.
- D. Delegate authority to members of senior management.
Answer: A
NEW QUESTION # 108
A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?
- A. Due professional care.
- B. Individual independence.
- C. Individual objectivity.
- D. Organizational independence.
Answer: A
NEW QUESTION # 109
Which of the following would not be considered part of preliminary survey of an engagement area?
- A. Functional walk through test.
- B. Sampling scope.
- C. Analytical reviews.
- D. Interviews with individuals affected by the entity.
Answer: B
NEW QUESTION # 110
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