IIA-CRMA Exam Practice Test Instant Access

Question 1

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?

APreparing the financial statements for the company's defined contribution plan.

BPerforming a pre-implementation review of the company's payroll application.

CProviding the COBIT framework as a possible IT management tool.

DReviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

Answer : A

Question 2

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

ARequesting a private meeting with senior management, without the presence of the chief audit executive.

BIntervening during an audit involving ethical wrongdoing.

CDiscussing periodic reports of ethical breaches.

DAuthorizing an investigation of an unsafe product.

Answer : B

Question 3

The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.

Which of the following internal audit tools would be most effective to document the process and the key controls?

AInternal control checklist.

BProcurement employee survey.

CCross-functional flow chart.

DSegregation of duties matrix.

Answer : C

Question 4

Which of the following statements describes a control failure that is not directly attributable to a customer billing application?

1. End users have raised a number of concerns regarding data integrity.

2. An untested program change is transferred from the test environment to production.

3. Purchase history does not reconcile with accounts receivable for some customers.

4. End user security is inadvertently granted to an unauthorized individual by management.

A1 and 3.

B1 and 4.

C2 and 3.

D2 and 4.

Answer : D

Question 5

Which of the following is not an appropriate activity for internal auditors to perform?

ARecommend management seek a consulting firm to advise on outsourcing.

BHighlight matters that require management's attention.

CImplement solutions for specific organizational problems.

DAccumulate data, obtain varying views, and report information to senior management.

Answer : C

Question 6

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?

AHigher inventory turnover.

BHigher operating margin.

CLower obsolete stock disposal.

DLower sales volume.

Answer : D

Question 7

When developing the organization's first risk universe, which of the following would the chief audit executive be least likely to consider?

AThe amount of risk that an organization is willing to seek or accept.

BThe extent and degree of interdependency for identified key risks.

CThe boundaries established to manage the amount of risk taken.

DThe exposure to risks following management's risk responses.

Answer : D

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