IIA-CRMA Exam Practice Test Instant Access

Question 1

A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?

AControl environment.

BControl activities.

CInformation and communication.

DMonitoring activities.

Answer : A

Question 2

Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

AHire a risk consultant.

BImplement a hedging strategy.

CMaintain a large foreign currency balance.

DInsist that customers only pay in a stable currency.

Answer : B

Question 3

Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

AEvaluating risk management processes.

BRecommending accountability for risk management.

CProviding assurance that risks are evaluated correctly.

DSupporting managers to identify ways to mitigate risks.

Answer : B

Question 4

An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?

ARisk avoidance.

BRisk-benefit analysis.

CRisk sharing.

DRisk acceptance.

Answer : D

Question 5

When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?

1. Findings of the last audit engagement performed.

2. Probability of significant errors, irregularities, or noncompliance.

3. Extent of work needed to achieve engagement objectives.

4. Cost of the engagement versus the potential benefits.

A1 and 4 only

B2 and 3 only

C2, 3, and 4 only

D1, 2, 3, and 4

Answer : C

Question 6

Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

AThe core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.

BThe framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.

CThe framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.

DThe framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

Answer : B

Question 7

Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

AInternal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.

BInternal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization.

CInternal auditor integrity enables the internal audit activity to be able to demonstrate independence.

DInternal auditor integrity enables users of internal auditors' work to make important business decisions.

Answer : D

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