IIA-CRMA Exam Practice Test Instant Access

Question 1

An internal auditor needs to recommend a policy element to be included in an organization's code of ethics. Which of the following recommendations would be most effective?

AEthics should vary with local customs in the organization's foreign operations.

BWhistleblowing should be discouraged because it can cause distrust among employees.

CEthical behavior should be incorporated into performance evaluations.

DSenior management should be granted specific exemptions to the code of ethics.

Answer : C

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

What should the internal auditor's role be in assessing the organization's ethical climate?

APerform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and

Bprocesses for achieving the desired level of legal and ethical compliance.

CMaintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.

DPerform background checks of potential new employees before they are hired by the organization.

Answer : B

Question 7

What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

ADuring facilitated workshops, people more openly say things to internal auditors than during private interviews.

BInternal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.

CFacilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

DThe testimonial evidence obtained during facilitated workshops is generally considered more reliable.

Answer : C

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