2023 Easy Success IIA IIA-CRMA-ADV Exam in First Try
Best IIA-CRMA-ADV Exam Dumps for the Preparation of Latest Exam Questions
NEW QUESTION # 20
According to IIA guidance, which of the following statements about working papers is false?
- A. They assist in the implementation of recommendations.
- B. They contribute to development of the internal audit staff.
- C. They demonstrate compliance with auditing standards.
- D. They provide support for communication to third parties.
Answer: A
NEW QUESTION # 21
During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing.
Which of the following tests would best help the internal auditor detect fraudulent activity?
- A. Review raw material purchase quantities.
- B. Check inventory levels.
- C. Search for gaps in check numbers.
- D. Compare vendor summaries.
Answer: B
NEW QUESTION # 22
To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity. According to IIA guidance, which of the following statements is true regarding these circumstances?
- A. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.
- B. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.
- C. The auditor should obtain the CAE's approval as to the nature and scope of the duties she is permitted to perform during her temporary assignment.
- D. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.
Answer: C
NEW QUESTION # 23
An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?
- A. Replace the auditor with another audit staff member.
- B. Work with the division's management to resolve the situation.
- C. Withdraw the audit team and outsource the financial audit of the division.
- D. Continue with the present auditor, as more than one year has passed.
Answer: A
NEW QUESTION # 24
Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?
- A. Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).
- B. Assist the CAE with hiring objective and competent internal audit staff.
- C. Encourage the CAE to communicate and coordinate with the external auditor.
- D. Approve the annual budget and resource plan for the internal audit activity.
Answer: A
NEW QUESTION # 25
Forty-five percent of an organization's customer payments are submitted online. Eight percent of online payments are rejected. Executive management decides to outsource its online payment services to a contractor that will assume 75 percent of the total value of rejected payments. The organization estimates $1.25 million customer payments due during the contract period.
Which of the following represents the organization's residual risk for online customer payments due?
- A. $33, 750
- B. $25, 000
- C. $11, 250
- D. $45, 000
Answer: C
NEW QUESTION # 26
According to IIA guidance, which of the following statements regarding the internal audit charter is true?
- A. Senior management should approve the charter before it is submitted to the board.
- B. The charter should define the consulting services that the internal audit activity is permitted to perform.
- C. The CEO periodically should assess whether the terms of the charter continue to be adequate.
- D. The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.
Answer: A
NEW QUESTION # 27
An internal audit charter should do which of the following?
- A. Outline the schedule of future audits.
- B. Define the scope of internal audit activities.
- C. Communicate the internal audit activity's goals.
- D. Establish the size of the internal audit activity.
Answer: B
NEW QUESTION # 28
An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management.
Which of the following correctly identifies the type of evidence this information represents?
- A. Sufficient, circumstantial evidence of the future solvency of the organization.
- B. Competent, corroborative evidence of future working capital requirements.
- C. Competent, documentary evidence of future cash flow changes within the organization.
- D. Sufficient, analytical evidence of the cash flow position at a given point of time in the future.
Answer: C
NEW QUESTION # 29
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization.
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?
- A. The periodic rotation of procurement officers' assignments to supplier accounts.
- B. An automated computer report, organized by supplier, of any invoices for the same amount.
- C. A pre-award financial capacity analysis of suppliers.
- D. Periodic inventories of kiln-dried wood at the organization's warehouse.
Answer: A
NEW QUESTION # 30
According to COSO, which of the following describes a principle related to the control environment?
- A. The organization performs evaluations to ascertain whether internal control components are present and functioning.
- B. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
- C. The organization selects and develops control activities that contribute to the mitigation of risks.
- D. The organization identifies and assesses changes that could significantly impact the system of internal control.
Answer: B
NEW QUESTION # 31
Which of the following factors have the greatest influence on the independence of the internal audit activity?
- A. Rotational assignments and familiarity of the internal audit activity.
- B. Employee incentives and self review of the internal audit activity.
- C. Organizational positioning and scope control of the internal audit activity.
- D. Quality assessments and cultural biases of the internal audit activity.
Answer: C
NEW QUESTION # 32
Which of the following is a second line of defense in effective risk management and control?
- A. Purchasing department.
- B. Credit department.
- C. Internal audit department.
- D. Compliance department.
Answer: D
NEW QUESTION # 33
Which of the following is most likely to be considered a control weakness?
- A. Purchase orders are typed by the purchasing department using prenumbered forms.
- B. Buyers promptly update the official vendor listing as new supplier sources become known.
- C. Department managers initiate purchase requests that must be approved by the plant superintendent.
- D. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
Answer: B
NEW QUESTION # 34
When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.
4. Losing bidders are hired as subcontractors.
- A. 2 and 4.
- B. 1 only
- C. 1 and 3.
- D. 2 only
Answer: A
NEW QUESTION # 35
According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?
- A. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
- B. Internal auditors should take a leading role in investigating all fraud-related cases.
- C. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
- D. Internal auditors are responsible for ensuring that fraud does not occur.
Answer: A
NEW QUESTION # 36
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?
- A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
- B. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
- C. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
- D. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.
Answer: A
NEW QUESTION # 37
An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?
- A. A log of conferences titles, dates of travel for each employee, and a detailed summary of conference objectives and how they relate to the organization's mission needs.
- B. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.
- C. A log that includes titles of conferences that all employees were invited to attend in the last year, along with the dates of those conferences and average costs per traveler.
- D. A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.
Answer: D
NEW QUESTION # 38
Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?
- A. A flowchart.
- B. A risk and control matrix.
- C. A process narrative.
- D. A walk-through.
Answer: B
NEW QUESTION # 39
While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE's decision?
- A. Objectivity.
- B. Proficiency.
- C. Independence.
- D. Due professional care.
Answer: D
NEW QUESTION # 40
According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?
- A. All employees.
- B. Senior management.
- C. Internal audit activity.
- D. Board of directors.
Answer: D
NEW QUESTION # 41
According to IIA guidance, which of the following is the best example of a system application control?
- A. A system development life cycle control.
- B. An input control over data integrity.
- C. A physical security control over a data center.
- D. A program change management control.
Answer: B
NEW QUESTION # 42
Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?
- A. If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.
- B. Because the audit committee is ultimately responsible for ensuring that appropriate control processes are in place to mitigate risks associated with personal information, the internal audit activity is C. required to conduct privacy assessments.
- C. The internal audit activity should have appropriate knowledge and competence to conduct an asses
.......framework. - D. The internal audit activity may delegate to nonaudit IT specialists the responsibility of determining whether personal information has been secured adequately and data protection controls are sufficient.
Answer: C
NEW QUESTION # 43
Which of the following is a common type of payroll fraud?
- A. Skimming.
- B. Unearned bonuses or commissions.
- C. Fictitious employees.
- D. Unauthorized overtime.
Answer: C
NEW QUESTION # 44
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?
- A. Risk management framework.
- B. Acceptance of gifts policy.
- C. Personal responsibility policy.
- D. Usage of IT system policy.
Answer: B
NEW QUESTION # 45
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