IIA-CRMA Exam Questions Instant Access - No Installation Required

Question 1

Which of the following describes a key characteristic related to effective organizational communication?

AComprehensive supervisory and verification procedures.

BA well-designed system of internal controls.

CA culture of integrity and transparency.

DUnique operating environments with varying complexity.

Answer : B

Question 2

An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

AOutsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.

BDetermine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.

CNotify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

DEmploy the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

Answer : D

Question 3

An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

AProcess mapping.

BInterviewing.

CMonitoring.

DDistributing questionnaires.

Answer : A

Question 4

An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

AWorking conditions.

BEmployees' families.

CMarketplace competition.

DShareholders and investors.

Answer : B

Question 5

After being terminated due to downsizing, an internal auditor finds a different job with an organization in the same industry. Which of the following actions would violate the IIA Code of Ethics?

ATo determine audit priorities in the new job, the auditor uses the audit risk approach that the auditor's previous employer used, without receiving permission to do so.

BAt the new organization, the auditor is asked to develop forms to implement probability-proportional-to-size sampling. Although unsure of how to perform this type of sampling, the auditor proceeds without asking for assistance.

CIn preparing for an audit at the previous organization, the auditor had conducted a great deal of research on the Internet at home to identify best practices for the management of a treasury function. The auditor has retained much of the research and uses it to conduct an audit of the new employer's treasury function.

DIn the first week at the new organization, the auditor discovers a high fraud risk surrounding the organization's database and suggests that the information technology department implement a new password system to prevent fraudulent actions before they occur.

Answer : B

Question 6

An organization invests its savings in a volatile stock with the potential for high gains rather than a mutual fund with a lower expected return and lower volatility. This best describes which of the following risk concepts?

ARisk identification.

BRisk appetite.

CRisk capacity.

DRisk tolerance.

Answer : D

Question 7

Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?

AThey serve as a reminder of what controls should exist in a process.

BThey require yes/no responses to specific questions, not open-ended responses.

CThey do not capture all controls that may exist.

DThey are useful in assessing risk.

Answer : C

IIA Certification in Risk Management Assurance (CRMA) IIA-CRMA Exam Questions