IIA-CRMA Exam Practice Test Instant Access

Question 1

As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

AOrganizational independence.

BProfessional objectivity.

CDue professional care.

DIndividual proficiency.

Answer : B

Question 2

Which of the following types of fraud includes embezzlement?

AFraudulent statements.

BBribery.

CMisappropriation of assets.

DCorruption.

Answer : C

Question 3

According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?

AWhen planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.

BInternal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.

CInternal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.

DBoth assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.

Answer : A

Question 4

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

AImmediately notify management of the area under review and the other internal auditors involved in the engagement.

BDiscuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

CFully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

DProvide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.

Answer : A

Question 5

The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

AThe assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

BThe CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.

CThe assigned internal auditor must not assume management responsibilities while performing the engagement.

DThe assigned internal auditor must maintain objectivity while performing the engagement.

Answer : A

Question 6

In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

AMaintaining industry-specific knowledge appropriate to the organization.

BAssessing how IT contributes to organization objectives, risks, and relevance to audit.

CMaintaining technical aspects of accounting standards and reporting processes.

DUnderstanding regulatory and legal framework and assessing its relevance.

Answer : D

Question 7

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

AThe external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.

BThe external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.

CThe external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.

DThe external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.

Answer : D

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