IIA-CRMA Exam Practice Test Instant Access

Question 1

The manager for an organization's accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

AAn operations audit of the accounts payable department.

BA consulting engagement related to a new accounts payable optimization initiative.

CA review of the employees' sports club finances, which are overseen by the chief audit executive.

DAn assurance review for a sales program on which she previously provided consultation.

Answer : C

Question 2

An internal auditor needs to recommend a policy element to be included in an organization's code of ethics. Which of the following recommendations would be most effective?

AEthics should vary with local customs in the organization's foreign operations.

BWhistleblowing should be discouraged because it can cause distrust among employees.

CEthical behavior should be incorporated into performance evaluations.

DSenior management should be granted specific exemptions to the code of ethics.

Answer : C

Question 3

Which of the following types of fraud includes embezzlement?

AFraudulent statements.

BBribery.

CMisappropriation of assets.

DCorruption.

Answer : C

Question 4

According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?

AWhen planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.

BInternal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.

CInternal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.

DBoth assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.

Answer : A

Question 5

The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

APressure or incentive.

BOpportunity.

CRationalization.

DCommitment.

Answer : A

Question 6

Which of the following is an example of a risk management avoidance response?

AExiting a marketplace.

BRecalling a product.

CObtaining product insurance.

DOutsourcing production.

Answer : A

Question 7

In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

AThe CAE would need to procure external services to deliver the internal audit assurance program.

BThere is no expertise within the internal audit team for detecting and investigating fraud.

CThere is no expertise within the internal audit team for auditing an IT engagement.

DThere is no available expertise on the internal audit team to perform a consulting engagement.

Answer : B

IIA Certification in Risk Management Assurance (CRMA) Exam Practice Test