IIA-CRMA Exam Practice Test Instant Access

Question 1

According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization's operations?

AThe services must be aligned with those defined in the internal audit charter.

BThe services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.

CThe services may preclude assurance services from the consulting engagement.

DThe services impose no responsibility to communicate information other than to the engagement client.

Answer : B

Question 2

Which of the following combinations of conditions is most likely a red flag for fraud?

AThe practice of surprise audits and the implementation of an employee support program.

BHiring an employee with a prior fraud conviction and yearly management review.

COccasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

DA veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Answer : C

Question 3

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?

AAllow the audit manager to hire the contractor and state that the individual is free to perform IT audits, including security.

BNot allow the audit manager to hire the contractor, as it would be a conflict of interest.

CAllow the audit manager to hire the contractor, but state that the individual is not allowed to work on IT security audits for one year.

DNot allow the audit manager to hire the contractor and ask the individual to apply again in one year.

Answer : A

Question 4

Which of the following audit procedures would provide the most relevant information to identify discrepancies between budgeted versus actual raw material consumption in a production facility?

AAnalytical review.

BInquiry.

CDocument verification.

DObservation.

Answer : A

Question 5

This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline.

Which of the following would be the best course of action for the CAE to take?

AContinue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.

BAsk that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.

CDelay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.

DRemove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.

Answer : C

Question 6

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 7

Which of the following is a preventive control?

ACreating an audit trail.

BPlacing controls on physical access to inventory.

CReconciling purchase orders with approvals.

DReviewing expense accounts for irregularities.

Answer : B

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