IIA-CRMA Exam Practice Test Instant Access

Question 1

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

AAssurance services for outside clients are not covered under the internal audit charter.

BAssurance services for outside clients must be approved on a case-by-case basis by the board of directors.

CThe nature of assurance services for outside clients should be defined in the internal audit charter.

DThe nature of assurance services for outside clients is the same as for internal clients.

Answer : C

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

Which of the following types of fraud includes embezzlement?

AFraudulent statements.

BBribery.

CMisappropriation of assets.

DCorruption.

Answer : C

Question 4

Which of the following is most likely to be considered a control weakness?

AVendor invoice payment requests are accompanied by a purchase order and receiving report.

BPurchase orders are typed by the purchasing department using prenumbered forms.

CBuyers promptly update the official vendor listing as new supplier sources become known.

DDepartment managers initiate purchase requests that must be approved by the plant superintendent.

Answer : C

Question 5

A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

AContinuously monitor the organization's overall risk activities in relation to its risk appetite.

BEvaluate the adequacy and effectiveness of the organization's governance activities.

COversee the establishment and administration of an effective risk management program.

DAssist management in implementing recommended control improvements.

Answer : C

Question 6

What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

ATo help the internal audit activity complete its annual assurance plan.

BTo identify inefficiencies within the internal audit team.

CTo help improve the overall quality of the internal audit activity's work.

DTo identify key risks and areas of concern within the organization.

Answer : C

Question 7

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

AManagement will be able to reduce inherent risk because they will have a better understanding of risk.

BInternal auditors will be able to reduce their sample sizes because controls will be more consistent.

CStakeholders will have more assurance that the risks are assessed consistently.

DDecision makers will understand that the likelihood of missing or ineffective controls will be reduced.

Answer : C

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