2024 IIA-CRMA-ADV Question Bank: Free PDF Download Recently Updated Questions
IIA-CRMA-ADV Certification Exam Dumps with 285 Practice Test Questions
NEW QUESTION # 117
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.
- A. 1 and 4 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 2 only
Answer: D
NEW QUESTION # 118
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. Control environment.
- C. Monitoring.
- D. Risk assessment.
Answer: C
NEW QUESTION # 119
A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant.
Which of the following tasks is appropriate for the CAE to undertake?
- A. Establish the degree of risk appetite for management to accept.
- B. Set risk indicators and mitigation plans for management to implement.
- C. Determine the number of significant risks for management to report to the board.
- D. Coordinate and facilitate risk workshops for management to attend.
Answer: C
NEW QUESTION # 120
Which of the following is the most common way that occupational fraud is detected?
- A. External audits.
- B. Key controls.
- C. Whistleblower hotline.
- D. Internal audits.
Answer: C
NEW QUESTION # 121
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?
- A. Acceptance of gifts policy.
- B. Usage of IT system policy.
- C. Risk management framework.
- D. Personal responsibility policy.
Answer: A
NEW QUESTION # 122
Which of the following is the best way to detect fraud?
- A. Conduct anti-fraud training.
- B. Implement process controls.
- C. Activate a whistleblower hotline.
- D. Perform background investigations.
Answer: C
NEW QUESTION # 123
Which of the following actions best demonstrates that an internal auditor is exercising due professional care?
- A. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.
- B. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.
- C. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.
- D. The auditor recommends improvements for all of the organization's procedures and practices.
Answer: A
NEW QUESTION # 124
Which of the following is an example of a detective control?
- A. Automatic shut-off valve.
- B. Safety instructions.
- C. Confirmation with suppliers and vendors.
- D. Auto-correct software functionality.
Answer: C
NEW QUESTION # 125
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, but state that the individual is not allowed to work on IT security audits for one year.
- B. Not allow the audit manager to hire the contractor, as it would be a conflict of interest.
- C. Not allow the audit manager to hire the contractor and ask the individual to apply again in one year.
- D. Allow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.
Answer: D
NEW QUESTION # 126
Reviewing prior audit reports and supporting workpapers before an engagement starts enables an internal auditor to do which of the following?
1. To understand better the activity and processes that will be audited.
2. To identify the audit procedures that will be used during the engagement.
3. To ensure that matters of greatest vulnerability will be addressed.
4. To use the information obtained as evidence in the current engagement.
- A. 4 only
- B. 1 and 4 only
- C. 2, 3, and 4 only
- D. 1 and 3 only
Answer: D
NEW QUESTION # 127
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 # 128
A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?
- A. The agency's chief compliance officer.
- B. The external auditors from an accounting firm.
- C. The government's independent auditor.
- D. The internal audit activity.
Answer: C
NEW QUESTION # 129
Which of the following must be in existence as a precondition to developing an effective system of internal controls?
- A. A monitoring process.
- B. An information and communication process.
- C. A strategic objective-setting process.
- D. A risk assessment process.
Answer: D
NEW QUESTION # 130
Which of the following statements best explains why internal auditors map processes?
1. To obtain audit evidence to support auditor's observations.
2. To determine scope and objectives of the audit.
3. To facilitate the identification of ownership and responsibility for key risks.
4. To identify potential efficiency improvements.
- A. 3 and 4.
- B. 2 and 4.
- C. 1 and 3.
- D. 1 and 2.
Answer: A
NEW QUESTION # 131
According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?
- A. To facilitate the conduct of risk assessment.
- B. To fulfill regulatory and compliance requirements.
- C. To achieve and maintain sustainable development.
- D. To enable Triple Bottom Line reporting capability.
Answer: C
NEW QUESTION # 132
The internal audit supervisor is reviewing the workpapers prepared by the staff. According to the Standards, which of the following statements regarding workpaper supervision is not true?
- A. Workpaper review allows for staff training and development.
- B. Dating and initialing each workpaper provides evidence of review.
- C. Review notes of questions that arise during the review process must be retained.
- D. Workpapers may be amended during the review process.
Answer: C
NEW QUESTION # 133
The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?
- A. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.
- B. The assigned internal auditor must not assume management responsibilities while performing the engagement.
- C. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.
- D. The assigned internal auditor must maintain objectivity while performing the engagement.
Answer: A
NEW QUESTION # 134
Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?
- A. Questioning of facility management, including the facility safety officer.
- B. Review of records involving safety violations, filed by facility production employees.
- C. Analysis of facility operating reports, focusing on instances when breakdowns occurred.
- D. Observation of the facility during operations.
Answer: D
NEW QUESTION # 135
Why are preventative controls generally preferred to detective controls?
- A. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.
- B. 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.
- C. Because preventive controls are more sensitive and identify more exceptions than detective controls.
- D. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.
Answer: A
NEW QUESTION # 136
Which of the following best demonstrates the authority of the internal audit activity?
- A. Determining the scope of internal audit services.
- B. Suggesting alternatives to decision makers.
- C. Achieving engagement objectives.
- D. Improving the integrity of information.
Answer: A
NEW QUESTION # 137
According to IIA guidance, which of the following statements about working papers is false?
- A. They demonstrate compliance with auditing standards.
- B. They assist in the implementation of recommendations.
- C. They provide support for communication to third parties.
- D. They contribute to development of the internal audit staff.
Answer: B
NEW QUESTION # 138
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. Rating each engagement record to assess its relevance and accessibility for the organization's board.
- B. Controlling access to engagement records, including access by senior management.
- C. Developing retention requirements for engagement records that are consistent with organizational guidelines.
- D. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.
Answer: A
NEW QUESTION # 139
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