VCE4Plus IIA-CRMA Dumps PDF - 100% Passing Guarantee
IIA-CRMA Braindumps Real Exam Updated on Apr 30, 2025 with 285 Questions
NEW QUESTION # 82
What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?
- A. During facilitated workshops, people more openly say things to internal auditors than during private interviews.
- B. Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.
- C. The testimonial evidence obtained during facilitated workshops is generally considered more reliable.
- D. Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.
Answer: D
NEW QUESTION # 83
An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization's investments. Which of the following is the most appropriate course of action regarding the auditor's use of this functionality?
- A. The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.
- B. The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.
- C. The auditor should perform a manual recalculation of several results to validate and document the results.
- D. The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.
Answer: C
NEW QUESTION # 84
Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?
1. Appropriate levels of authority and responsibility.
2. Supervision of staff and appropriate review of work.
3. The seniority of management in the organization.
4. The ability to trace each transaction to an accountable and responsible individual.
- A. 1,2, and 3.
- B. 1.3, and 4.
- C. 2, 3, and 4.
- D. 1.2, and 4.
Answer: C
NEW QUESTION # 85
Which of the following would most likely be considered a red flag for fraud?
- A. An employee in charge of payroll disbursements has rotated these duties with several colleagues.
- B. An organization lacks a whistleblower hotline for reporting suspicious activity.
- C. A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
- D. An employee with significant personal debt is in charge of handling large wire transfers for the organization.
Answer: D
NEW QUESTION # 86
Which two of the following are preventive controls in a check disbursement process?
1. Daily reconciliation of the bank account used for check disbursements and prompt follow-up of un-reconciled items.
2. Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.
3. An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.
4. Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.
- A. 2 and 3.
- B. 1 and 4.
- C. 2 and 4.
- D. 1 and 3.
Answer: C
NEW QUESTION # 87
While performing an accounts payable engagement, a senior auditor wants to conduct several tests of controls for travel expenses. Which of the following actions are most appropriate for the senior auditor to undertake?
1. Ensure all tests use a random sampling technique.
2. Consider a judgmental approach for the sample size.
3. Assess testing errors through root cause analysis.
4. Ensure that the entire data set is tested.
- A. 2 and 4.
- B. 2 and 3.
- C. 1 and 3.
- D. 1 and 2.
Answer: B
NEW QUESTION # 88
Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?
- A. The audit manager conducts an internal quality assessment of the internal audit activity's adherence to the Standards.
- B. The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.
- C. The internal auditor reviews the physical access to merchandise during an inventory count.
- D. The board approves the annual performance evaluation of the chief audit executive.
Answer: C
NEW QUESTION # 89
An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.
Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?
- A. Confidentiality.
- B. Competency.
- C. Objectivity.
- D. Integrity.
Answer: C
NEW QUESTION # 90
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. The nature of assurance services for outside clients should be defined in 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. Assurance services for outside clients are not covered under the internal audit charter.
Answer: B
NEW QUESTION # 91
Which of the following is an example of a risk management avoidance response?
- A. Exiting a marketplace.
- B. Outsourcing production.
- C. Recalling a product.
- D. Obtaining product insurance.
Answer: A
NEW QUESTION # 92
What is the purpose of a secondary control?
- A. It replaces primary controls that are either ineffective or cannot fully mitigate a risk.
- B. It helps to ensure the completeness and accuracy of automated controls in a system environment.
- C. lt combines with other controls to help reduce significant risk exposures to an acceptable level.
- D. It partially reduces the residual risk level when a key control does not operate effectively.
Answer: C
NEW QUESTION # 93
According to IIA guidance, which of the following objectives of an assurance engagement for the organization's risk management process is valid?
- A. Risks have been accurately analyzed and evaluated.
- B. All risks have been identified and mitigated.
- C. The board is appropriately addressing intolerable risks.
- D. All controls are both adequate and efficient.
Answer: A
NEW QUESTION # 94
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.
Answer: B
NEW QUESTION # 95
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. Two years.
- B. One year.
- C. Six months.
- D. Three months.
Answer: B
NEW QUESTION # 96
The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?
- A. Commitment.
- B. Pressure or incentive.
- C. Rationalization.
- D. Opportunity.
Answer: B
NEW QUESTION # 97
An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor's suspicion?
- A. A much higher percentage of past-due accounts receivable than that of other stores.
- B. A much higher bad debt expense as a percentage of sales than that of other stores.
- C. A much higher bad debt expense as a percentage of sales than that of previous years.
- D. A much higher percentage of past-due accounts receivable than that of previous years.
Answer: B
NEW QUESTION # 98
A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?
- A. Due professional care.
- B. Individual objectivity.
- C. Organizational independence.
- D. Individual independence.
Answer: A
NEW QUESTION # 99
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?
- A. Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.
- B. Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.
- C. Immediately notify management of the area under review and the other internal auditors involved in the engagement.
- D. Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.
Answer: C
NEW QUESTION # 100
A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?
- A. Evaluate the adequacy and effectiveness of the organization's governance activities.
- B. Continuously monitor the organization's overall risk activities in relation to its risk appetite.
- C. Oversee the establishment and administration of an effective risk management program.
- D. Assist management in implementing recommended control improvements.
Answer: C
NEW QUESTION # 101
......
IIA-CRMA Dumps With 100% Verified Q&As - Pass Guarantee or Full Refund: https://examschief.vce4plus.com/IIA/IIA-CRMA-valid-vce-dumps.html