Valid IIA-CRMA Exam Q&A PDF IIA-CRMA Dump is Ready (Updated 285 Questions)
Exam Questions and Answers for IIA-CRMA Study Guide
NEW QUESTION 57
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 58
An internal audit team is performing an audit of workplace accident claims.
Which of the following actions by the audit team best demonstrates due professional care?
- A. Having an occupational health officer on the engagement team.
- B. Determining that the claims have been classified properly.
- C. Placing reliance on medical reports from the injured worker's doctor.
- D. Reviewing claims to ensure all accidents actually occurred in the workplace.
Answer: A
NEW QUESTION 59
Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?
- A. Maintain industry-specific knowledge appropriate to the audit engagements
- B. Manage and support a quality assurance and improvement program.
- C. Apply problem-solving techniques for routine situations.
- D. Set clear performance standards for internal auditors and the internal audit activity.
Answer: D
NEW QUESTION 60
Which of the following would not be a red flag for fraud?
- A. New employees occasionally fail to meet established project deadlines due to staffing shortages.
- B. A weak control environment has been accepted by management to encourage creativity.
- C. Several recent, large expenditures to a new vendor have not been documented.
- D. A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager's salary.
Answer: A
NEW QUESTION 61
According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?
- A. Internal auditors are responsible for ensuring that fraud does not occur.
- B. Internal auditors should take a leading role in investigating all fraud-related cases.
- C. Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
- D. Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
Answer: C
NEW QUESTION 62
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 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.
- B. 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.
- C. A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.
- 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 63
Which of the following is most likely to be considered a control weakness?
- A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.
- 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. Purchase orders are typed by the purchasing department using prenumbered forms.
Answer: B
NEW QUESTION 64
Which of the following statements is true regarding assurance services provided to clients outside of the organization?
- A. The nature of assurance services for outside clients is the same as for internal clients.
- B. Assurance services for outside clients are not covered under the internal audit charter.
- C. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.
- D. The nature of assurance services for outside clients should be defined in the internal audit charter.
Answer: D
NEW QUESTION 65
Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management's competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.
- A. 1, 2, and 3 only
- B. 2, 3, and 4 only
- C. 1 and 2 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION 66
An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?
- A. Detective controls.
- B. Preventive controls.
- C. Directive controls.
- D. Soft controls.
Answer: B
NEW QUESTION 67
An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?
- A. Employees' families.
- B. Working conditions.
- C. Marketplace competition.
- D. Shareholders and investors.
Answer: A
NEW QUESTION 68
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. Board of directors.
- B. Internal audit activity.
- C. Senior management.
- D. All employees.
Answer: A
NEW QUESTION 69
According to IIA guidance, which of the following should be formally documented in the internal audit charter?
- A. The internal audit activity's responsibility for imposing risk management processes.
- B. The budgeting process for the internal audit activity.
- C. The internal audit activity's responsibility for the organization's governance framework.
- D. The nature of consulting services provided by the internal audit activity.
Answer: D
NEW QUESTION 70
Which of the following offers the best evidence that the internal audit activity has achieved organizational independence?
- A. The mission statement and strategy of the internal audit activity demonstrates alignment to organizational objectives.
- B. An independent third party has assessed the organization's system of internal controls to be adequate and effective.
- C. The chief audit executive reports both functionally and administratively to the CEO.
- D. The internal audit charter is drafted properly and approved by the appropriate parties.
Answer: C
NEW QUESTION 71
Which of the following activities should the chief audit executive perform to ensure compliance with an organization's code of conduct?
- A. Act as an adviser to the committee responsible for reviewing violations of the code.
- B. Lead the committee responsible for the oversight of the code.
- C. Review and adjudicate all violations of the code of conduct.
- D. Implement a system of procedures to inform all employees of the code.
Answer: A
NEW QUESTION 72
In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers' accounts?
- A. Employees are submitting fraudulent expense reports.
- B. The customer service department is not forwarding complaints to the accounts receivable department.
- C. An employee is tampering with customer checks.
- D. Invoices are not being mailed to customers.
Answer: C
NEW QUESTION 73
Which of the following decisions made during the testing phase of a compliance audit requires the most judgment by an internal auditor?
- A. What level of noncompliance is acceptable.
- B. Which fields to examine on each invoice.
- C. Which sampling methodology to select for testing.
- D. Whether an individual expenditure is allowable.
Answer: A
NEW QUESTION 74
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