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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

Which of the following would not be a red flag for fraud?

A.

Several recent, large expenditures to a new vendor have not been documented.

B.

A manager has bragged about multiple extravagant vacations taken within the last year, which are excessive relative to the manager's salary.

C.

A weak control environment has been accepted by management to encourage creativity.

D.

New employees occasionally fail to meet established project deadlines due to staffing shortages.

While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

A.

Resource management.

B.

Coordination.

C.

Due professional care.

D.

Engagement supervision.

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

A.

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

B.

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

C.

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

D.

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

Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

A.

A review of audit staff education and training records.

B.

Information about the audit staff size and composition of comparable organizations.

C.

Results from discussions of audit needs with executive management and the audit committee.

D.

The results of the audit staff's most recent performance reviews.

An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing. Which conclusion should the auditor draw from this data?

A.

Cash or accounts receivable has decreased.

B.

The gross margin has decreased.

C.

The division produced fewer items this year than in prior years.

D.

The gross margin has increased.

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?

A.

Competence.

B.

Flexibility.

C.

Objectivity.

D.

Independence.

Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

A.

Suppliers' reports of over shipments.

B.

Warehouse receiving logs.

C.

Purchase requisitions and purchase orders.

D.

Observation and inspection of inventory.

A computer system automatically locks a user's account after three unsuccessful attempts to log on.

Which type of control does this scenario represent?

A.

Corrective control.

B.

Preventive control.

C.

Detective control.

D.

Compensating control.

Which of the following does not need to be defined in the internal audit charter?

A.

The audit engagements to be performed during the upcoming year.

B.

The internal audit activity's position within the organization.

C.

The scope of internal audit activities.

D.

Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.

According to IIA guidance, which of the following statements is true?

A.

Risks in IT processes are best mitigated by individual controls.

B.

The overall focus of the framework is on significant controls in all critical IT applications.

C.

IT risks and related controls are operational and best identified using a bottom-up approach.

D.

Control process risks are found at multiple layers of the IT environment.

Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?

A.

Governance, risk, and control.

B.

Performance management.

C.

Business acumen.

D.

Internal audit delivery.

An organization's chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

A.

Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.

B.

Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project's timeframe as outlined by the audit committee.

C.

Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

D.

Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

A.

The government's independent auditor.

B.

The external auditors from an accounting firm.

C.

The internal audit activity.

D.

The agency's chief compliance officer.

What is the primary purpose of a fishbone diagram?

A.

To depict the areas of responsibility for departments in an organization.

B.

To plan and control complex projects, such as internal audits.

C.

To represent the frequencies of adverse conditions in a given process.

D.

To identify the possible causes of adverse conditions.

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.

A.

1 and 2.

B.

1 and 3.

C.

2 and 4.

D.

3 and 4.

Which of the following controls is not appropriate for sales in a manufacturing organization?

A.

Customers' orders are recorded promptly.

B.

Goods shipped are matched with valid customer orders.

C.

Goods returned are inspected for damage by the receiving department for proper disposition.

D.

Sales department approval is required for credit sales transactions.

Which of the following conditions is the most likely indicator of fraud?

A.

Commissions are paid based on verified increases to sales.

B.

Departmental reports are consistently issued in an untimely manner.

C.

A manager regularly assumes subordinates' duties.

D.

Lower earnings occur during the industry's down cycle.

When an internal auditor applies due professional care to perform an assurance engagement, which of the following must she consider?

1. Findings of the last audit engagement performed.

2. Probability of significant errors, irregularities, or noncompliance.

3. Extent of work needed to achieve engagement objectives.

4. Cost of the engagement versus the potential benefits.

A.

1 and 4 only

B.

2 and 3 only

C.

2, 3, and 4 only

D.

1, 2, 3, and 4

A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO).

Which of the following would impair the internal audit function's independence?

A.

The CFO determines the scope of internal audit work in the accounting department.

B.

The CFO manages the accounting of the budget for the internal audit function.

C.

The CFO administers the annual evaluation process for the internal auditors.

D.

The CFO provides feedback on the CAE's audit reports.

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

A.

All risks have been identified and mitigated.

B.

Risks have been accurately analyzed and evaluated.

C.

All controls are both adequate and efficient.

D.

The board is appropriately addressing intolerable risks.

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Total 283 questions
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