[2023] IIA-CRMA-ADV Answers IIA-CRMA-ADV Free Demo Are Based On The Real Exam
IIA-CRMA-ADV [Aug-2023 Newly Released] Exam Questions For You To Pass
NEW QUESTION # 100
During the course of an audit, an internal auditor discovers that a valuable employee in the research department has been patenting new developments in the employee's name that are unrelated to the basic business of the organization.
The organization does not have a policy addressing this specific issue, but does have a general policy that all important new discoveries by employees are the property of the organization.
Division management views the employee's actions as extra incentive to retain the employee.
A decision to include the employee's action in the engagement final communication would be:
1. A violation of the IIA Code of Ethics.
2. A violation of the reporting requirements in the Standards.
3. Justified and necessary, according to the IIA Code of Ethics and Standards.
- A. 1 only
- B. 1 and 2 only
- C. 3 only
- D. 2 only
Answer: C
NEW QUESTION # 101
Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?
- A. CAE certification.
- B. Organizational status and objectivity.
- C. Organizational knowledge and skills.
- D. Supervision of the chief audit executive (CAE) by senior management.
Answer: B
NEW QUESTION # 102
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. $33, 750
- B. $45, 000
- C. $25, 000
- D. $11, 250
Answer: D
NEW QUESTION # 103
Click the Exhibit.
Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?
- A. Both A and B.
- B. Graph B only
- C. Neither A nor B.
- D. Graph A only
Answer: A
NEW QUESTION # 104
According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?
- A. Control activities.
- B. Monitoring.
- C. Risk assessment.
- D. Control environment.
Answer: B
NEW QUESTION # 105
An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?
- A. Higher operating margin.
- B. Lower sales volume.
- C. Lower obsolete stock disposal.
- D. Higher inventory turnover.
Answer: B
NEW QUESTION # 106
Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?
1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.
- A. 1, 2, and 4 only
- B. 3 and 4 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: A
NEW QUESTION # 107
According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.
- A. 1, 2, 3, and 4
- B. 1, 2, and 3 only
- C. 2 and 3 only
- D. 1 and 4 only
Answer: B
NEW QUESTION # 108
Which of the following is not an objective of internal control?
- A. Validation.
- B. Compliance.
- C. Efficiency.
- D. Accuracy.
Answer: A
NEW QUESTION # 109
Which of the following describes a key characteristic related to effective organizational communication?
- A. A culture of integrity and transparency.
- B. Unique operating environments with varying complexity.
- C. A well-designed system of internal controls.
- D. Comprehensive supervisory and verification procedures.
Answer: C
NEW QUESTION # 110
During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?
- A. Confidentiality and independence.
- B. Professional qualifications and certification in internal auditing.
- C. Soft skills in communication, negotiation, and collaboration.
- D. Technical skills in the area under review.
Answer: C
NEW QUESTION # 111
According to COSO, which of the following is not considered one of the components of an organization's internal environment?
- A. Framework to plan, execute and monitor activities.
- B. Knowledge and skills needed to perform activities.
- C. Authority and responsibility to resolve issues.
- D. Integrated responses to multiple risks.
Answer: D
NEW QUESTION # 112
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?
- A. The external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.
- B. The external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.
- C. The 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.
- D. The external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.
Answer: D
NEW QUESTION # 113
An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?
- A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
- B. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.
- C. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
- D. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
Answer: A
NEW QUESTION # 114
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. 2, 3, and 4 only
- B. 1 and 2 only
- C. 1, 2, and 3 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION # 115
A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?
- A. Appoint the CAE as a member of the board.
- B. Move the CAE's functional reporting to the audit committee.
- C. Move the CAE's functional reporting to an executive who is not on the board.
- D. Obtain full board approval of the internal audit activity's annual audit plan.
Answer: B
NEW QUESTION # 116
According to IIA guidance, which of the following are macro-level audit activities performed for an assurance engagement of the purchasing department?
1. Obtain and review all purchasing-related audit reports issued within the past year.
2. Meet with the quality assurance group to discuss its previous reports of any purchasing-related findings.
3. Review a memo written by the purchasing manager that outlines ongoing problems with the purchasing software.
4. Request a copy of the report from a purchasing audit conducted last year by an external service provider.
- A. 1 and 2.
- B. 3 and 4.
- C. 1 and 3.
- D. 2 and 4.
Answer: A
NEW QUESTION # 117
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