BEST Verified IIA IIA-CRMA Exam Questions (2023) [Q163-Q184]

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BEST Verified IIA IIA-CRMA Exam Questions (2023)

The Best Practice Test Preparation for the IIA-CRMA Certification Exam

IIA IIA-CRMA Exam Syllabus Topics:

Topic	Details
Topic 1	Monitoring risk mitigation plans and emerging risks Role, authority, responsibility, etc., for risk management
Topic 2	Maintain and develop the risk management framework Documentation of governance-related decision-making
Topic 3	Facilitate identification and evaluation of risks Management of third party business relationships
Topic 4	Periodic review of risk management processes to aid in continuous improvement Objectives of risk management processes
Topic 5	Developing and implementing risk mitigation plans Integrity, ethical values, and other soft controls

Get to know about the actual objective of IIA-CRMA Exam?

This certification is considered the global credential for the risk professionals in the industry. As a professional trained in risk management, you are able to apply your understanding to practical situations. You are able to make important decisions about how to improve your organization’s risk management practices. IIA-CRMA exam dumps compiles information for your preparation to ensure your success. This certification demonstrates that you have achieved mastery of the required disciplines of Risk Management Planning and Risk Management Assurance. Comprehensive business review materials and preparation guides will help you be prepared for this exam domain.

NEW QUESTION 163
According to IIA guidance, which of the following objectives of an assurance engagement for the organization’s risk management process is valid?

All risks have been identified and mitigated.

Risks have been accurately analyzed and evaluated.

All controls are both adequate and efficient.

The board is appropriately addressing intolerable risks.

NEW QUESTION 164
According to the IIA guidance, who is responsible for periodically assessing the internal audit activity?

The board.

The chief audit executive.

Senior management.

The external auditors.

NEW QUESTION 165
Which of the following situations is most likely to impair internal audit objectivity?

An internal auditor reports both functionally and administratively to the chief financial officer (CFO).

An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.

According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.

An internal auditor performs an audit in a department that is led by the auditor’s close friend.

NEW QUESTION 166
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

Determine the organization’s overall risk appetite.

Establish a governance committee.

Delegate authority to members of senior management.

Identify key stakeholders and their expectations.

NEW QUESTION 167
The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?

Internal control checklist.

Procurement employee survey.

Cross-functional flow chart.

Segregation of duties matrix.

NEW QUESTION 168
Non-statistical sampling does not require which of the following?

The sample to be representative of the population.

The sample to be selected haphazardly.

A smaller sample size than if selected using statistical sampling.

Projecting the results to the population.

NEW QUESTION 169
An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

Preventive controls.

Detective controls.

Soft controls.

Directive controls.

NEW QUESTION 170
If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

Terminate the audit engagement in full because an operational audit will not be productive without the client’s cooperation.

Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

Refer the client to the IAA’s charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

NEW QUESTION 171
Which of the following statements best explains why internal auditors map processes?
1. To obtain audit evidence to support auditor’s observations.
2. To determine scope and objectives of the audit.
3. To facilitate the identification of ownership and responsibility for key risks.
4. To identify potential efficiency improvements.

1 and 2.

1 and 3.

2 and 4.

3 and 4.

NEW QUESTION 172
An internal audit activity (IAA) provided assurance services for an activity it was responsible for during the preceding year.
As a result, which IIA Code of Ethics principle is presumed to be impaired?

Competence.

Flexibility.

Objectivity.

Independence.

NEW QUESTION 173
According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

It increases the likelihood of obtaining the audit client’s agreement with the results.

It ensures that an appropriate chain of evidence is maintained through the workpapers.

It helps ensure that appropriate professional judgments and conclusions are made.

It is required to demonstrate that effective engagement supervision has occurred.

NEW QUESTION 174
An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

Process mapping.

Interviewing.

Monitoring.

Distributing questionnaires.

NEW QUESTION 175
An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

NEW QUESTION 176
According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?

The relative complexity, materiality, or significance of matters to which assurance procedures are applied.

The extent of assurance services necessary to ensure that all risks are identified.

The cost of providing the assurance services in relation to potential benefits.

The probability of significant errors, irregularities or instances of noncompliance.

NEW QUESTION 177
Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?

They serve as a reminder of what controls should exist in a process.

They require yes/no responses to specific questions, not open-ended responses.

They do not capture all controls that may exist.

They are useful in assessing risk.

NEW QUESTION 178
A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

The CAE should not interfere because there is no evidence that a conflict of interest has occurred.

The CAE should remind the senior auditor of his obligation to be objective and impartial.

The CAE should change the senior auditor’s assignment and take corrective action for the auditor’s failure to disclose the conflict of interest.

The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.

NEW QUESTION 179
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?

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

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

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

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

NEW QUESTION 180
According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

Internal auditors shall continually improve their proficiency and effectiveness and quality of their services.

Internal auditors shall respect and contribute to legitimate and ethical objectives of the organization.

Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.

Internal auditors shall be prudent in the use and protection of information acquired in the course of their duties.

NEW QUESTION 181
According to IIA guidance, which of the following statements regarding the internal audit charter is true?

Senior management should approve the charter before it is submitted to the board.

The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.

The charter should define the consulting services that the internal audit activity is permitted to perform.

The CEO periodically should assess whether the terms of the charter continue to be adequate.

NEW QUESTION 182
Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?
1. Reappraising risks levels.
2. Providing accurate information to management.
3. Marketing the internal audit activity.
4. Planning safeguards for assets in high-risk areas.

1 and 2.

1 and 3.

2 and 3.

3 and 4.

NEW QUESTION 183
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

The audit committee and senior management.

The audit committee and the external auditors.

Senior management and management of the audited area.

Senior management and the external auditors.

NEW QUESTION 184
An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?

Replace the auditor with another audit staff member.

Continue with the present auditor, as more than one year has passed.

Withdraw the audit team and outsource the financial audit of the division.

Work with the division’s management to resolve the situation.

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