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IIA-CRMA-ADV IIA Certification in Risk Management Assurance Free Practice Exam Questions (2025 Updated)

Prepare effectively for your IIA IIA-CRMA-ADV Certification in Risk Management Assurance certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 283 questions

An internal auditor is reviewing employee travel data to identify opportunities to cut costs while ensuring adequate participation at conferences to support the organization's mission. Which of the following pieces of evidence would be sufficient for completing this task?

A.

A log from the last year that includes dates of travel, conference titles, and conference objectives, all of which correspond with employee names and costs per trip.

B.

A log that includes titles of conferences that all employees were invited to attend in the last year, along with the dates of those conferences and average costs per traveler.

C.

A log of conferences titles, dates of travel for each employee, and a detailed summary of conference objectives and how they relate to the organization's mission needs.

D.

A log of employee travel requests, which include the title of each conference, the conference objectives, anticipated dates of travel, and estimated costs.

The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?

A.

Demonstrated compliance with procedures.

B.

Due professional care.

C.

Engagement supervision.

D.

Employment of tools and techniques.

Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?

A.

If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.

B.

Because the audit committee is ultimately responsible for ensuring that appropriate control processes are in place to mitigate risks associated with personal information, the internal audit activity is C. required to conduct privacy assessments.

C.

The internal audit activity may delegate to nonaudit IT specialists the responsibility of determining whether personal information has been secured adequately and data protection controls are sufficient.

D.

The internal audit activity should have appropriate knowledge and competence to conduct an asses .......framework.

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.

1 and 2.

B.

1 and 3.

C.

2 and 3.

D.

2 and 4.

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.

According to IIA guidance, which of the following is ultimately responsible for seeing that the internal control system of an organization's social responsibility program is effective?

A.

Senior management.

B.

Internal audit activity.

C.

All employees.

D.

Board of directors.

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.

Soft skills in communication, negotiation, and collaboration.

B.

Technical skills in the area under review.

C.

Professional qualifications and certification in internal auditing.

D.

Confidentiality and independence.

An internal audit charter should do which of the following?

A.

Outline the schedule of future audits.

B.

Define the scope of internal audit activities.

C.

Establish the size of the internal audit activity.

D.

Communicate the internal audit activity's goals.

According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?

1. Identification.

2. Mitigation.

3. Remediation.

4. Reduction.

A.

1 only. |

B.

1 and 4 only.

C.

1, 3, and 4 only.

D.

1,2, 3, and 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?

A.

Immediately notify management of the area under review and the other internal auditors involved in the engagement.

B.

Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

C.

Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

D.

Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.

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 and 4 only

B.

2 and 3 only

C.

1, 2, and 3 only

D.

1, 2, 3, and 4

According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

A.

Management principles.

B.

Computerized information systems.

C.

Internal audit standards, procedures, and techniques.

D.

Fundamentals of accounting, economics, and finance.

Which of the following is most likely to function as a directive control?

A.

Security dogs.

B.

Alert employees.

C.

Insurance claims.

D.

Cycle counts.

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

A.

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

B.

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

C.

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

D.

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

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

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.

A.

1 and 2.

B.

1 and 3.

C.

2 and 3.

D.

3 and 4.

Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

A.

The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.

B.

The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.

C.

The auditor recommends improvements for all of the organization's procedures and practices.

D.

The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.

In which of the following functions would fraud be most likely to occur?

A.

Maintaining custody of inventory records.

B.

Collecting payments on accounts.

C.

Approving changes to employee records.

D.

Preparing customer statements.

Which of the following is an activity that an internal auditor must not perform?

A.

Establish and provide continuing assurance on an anti-money laundering program for new hires.

B.

Survey employees for their understanding of anti-money laundering practices.

C.

Provide assurance for the effectiveness of anti-money laundering training.

D.

Assess the risk of being fined for ineffective anti-money laundering practices.

According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?

A.

Accepting a consulting request in the IT department without possessing the requisite experience.

B.

Providing personal tax preparation services for a fee for several employees during the lunch hour.

C.

Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.

D.

Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.

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Total 283 questions
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