IIA-CRMA Online Practice Questions and Answers

According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?

A. Three months.

B. Six months.

C. One year.

D. Two years.

Why are preventative controls generally preferred to detective controls?

A. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.

B. Because preventive controls are more sensitive and identify more exceptions than detective controls.

C. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.

D. Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.

Which of the following options is the most cost-effective and efficient way for internal auditors to keep current with the latest developments in the internal audit profession?

A. Attending annual professional conferences and seminars.

B. Participating in on-the-job training in various departments of the organization.

C. Pursuing as many professional certifications as possible.

D. Maintaining membership in The HA and similar professional organizations and subscribing to relevant email updates or news feeds.

A snow removal company is conducting a scenario planning exercise where participating employees consider the potential impacts of a significant reduction in annua snowfall for the coming winter. Which of the following best describes this type of risk?

A. Residual.

B. Net.

C. Inherent.

D. Accepted.

Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

A. Internal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.

B. Internal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization.

C. Internal auditor integrity enables the internal audit activity to be able to demonstrate independence.

D. Internal auditor integrity enables users of internal auditors' work to make important business decisions.

Which of the following types of fraud includes embezzlement?

A. Fraudulent statements.

B. Bribery.

C. Misappropriation of assets.

D. Corruption.

Which of the following statements describes impairment to the internal auditor's objectivity?

A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.

B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.

C. An internal auditor receives a promotional gift that is available to the organization's employees.

D. An internal auditor performs an assessment of the operations for which he was recently responsible.

Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?

A. The internal audit activity's plan for resource allocation.

B. The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.

C. The number of audits from the annual internal audit plan that were completed last year.

D. The qualifications and independence of the assessment Team.

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. $11, 250

B. $25, 000

C. $33, 750

D. $45, 000

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. Approve the annual budget and resource plan for the internal audit activity.

C. Assist the CAE with hiring objective and competent internal audit staff.

D. Encourage the CAE to communicate and coordinate with the external auditor.