2022 Latest IIA-CRMA dumps Exam Material with 285 Questions [Q133-Q155] : Free valid test braindumps : http://free.validbraindumps.com

NEW QUESTION 133
Which of the following is a weakness of observation as audit evidence?

It cannot be used to test the completeness assertion.

It cannot be used to test the existence assertion.

It cannot be used to test the occurrence assertion.

It cannot be relied upon because the evidence is not persuasive.

NEW QUESTION 134
What is the primary purpose of a fishbone diagram?

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

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

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

To identify the possible causes of adverse conditions.

NEW QUESTION 135
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?

Residual.

Net.

Inherent.

Accepted.

NEW QUESTION 136
Who is responsible for setting the risk appetite?

External auditors.

Chief risk officer.

Operations management.

Board of directors.

NEW QUESTION 137
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 138
An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate).
Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?

Variability tolerance.

Ratio estimation.

Stratification.

Acceptance sampling.

NEW QUESTION 139
While auditing an organization’s credit approval process, an internal auditor learns that the organization has made a large loan to another auditor’s relative. Which course of action should the auditor take?

Proceed with the audit engagement, but do not include the relative’s information.

Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

Disclose in the engagement final communication that the relative is a customer.

Immediately withdraw from the audit engagement.

NEW QUESTION 140
According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?

Control environment.

Control activities.

Risk assessment.

Monitoring.

NEW QUESTION 141
While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE’s decision?

Objectivity.

Proficiency.

Independence.

Due professional care.

NEW QUESTION 142
An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

Management will be able to reduce inherent risk because they will have a better understanding of risk.

Internal auditors will be able to reduce their sample sizes because controls will be more consistent.

Stakeholders will have more assurance that the risks are assessed consistently.

Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

NEW QUESTION 143
An internal auditor needs to recommend a policy element to be included in an organization’s code of ethics.
Which of the following recommendations would be most effective?

Ethics should vary with local customs in the organization’s foreign operations.

Whistleblowing should be discouraged because it can cause distrust among employees.

Ethical behavior should be incorporated into performance evaluations.

Senior management should be granted specific exemptions to the code of ethics.

NEW QUESTION 144
Which of the following describes a key characteristic related to effective organizational communication?

Comprehensive supervisory and verification procedures.

A well-designed system of internal controls.

A culture of integrity and transparency.

Unique operating environments with varying complexity.

NEW QUESTION 145
Which of the following statements is true regarding assurance services provided to clients outside of the organization?

Assurance services for outside clients are not covered under the internal audit charter.

Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

The nature of assurance services for outside clients should be defined in the internal audit charter.

The nature of assurance services for outside clients is the same as for internal clients.

NEW QUESTION 146
Which of the following audit techniques is used to evaluate control design while also embodying auditing’s analytical process?

A risk and control matrix.

A flowchart.

A walk-through.

A process narrative.

NEW QUESTION 147
According to the HA Code of Ethics, which of the following statements best describes the principle of competency?

Internal auditors shall perform their work with honesty, diligence, and responsibility.

Internal auditors shall perform their work in accordance with the Standards.

Internal auditors shall perform their work in accordance with the law and make disclosures expected by the law.

Internal auditors shall be prudent in the use of information acquired while performing their work.

NEW QUESTION 148
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.

1 and 2.

1 and 3.

2 and 4.

3 and 4.

NEW QUESTION 149
Which of the following actions should an internal auditor take to exercise due professional care?
1. Consider the probability of significant noncompliance in each audit engagement.
2. Weigh the cost of assurance against the benefits.
3. Perform assurance procedures with sufficient care to ensure that all risks are identified.

1 and 2 only

1 and 3 only

2 and 3 only

1, 2, and 3

NEW QUESTION 150
A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities. According to MA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

Plan employee sessions and team building strategies for the organization to improve awareness of fraud among employees.

Review the investigation and implement any improvements to the process.

Conduct lessons learned sessions to ascertain how the fraud occurred and which controls failed.

Determine why The fraud was not detected earlier and design controls to strengthen early detection.

NEW QUESTION 151
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 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.

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.

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.

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

NEW QUESTION 152
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.

1 and 2 only

1, 2, and 3 only

1, 2, and 4 only

2, 3, and 4 only

NEW QUESTION 153
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?

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

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

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

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

NEW QUESTION 154
Which of the following are components of the COSO enterprise risk management framework?
1. Objective setting.
2. External environment.
3. Data collection.
4. Control activities.

1 and 3 only

1 and 4 only

2 and 3 only

2 and 4 only

NEW QUESTION 155
A chief audit executive (CAE) is reviewing the internal audit activity’s performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity’s quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

The overall effectiveness of the internal audit activity’s periodic self assessments.

The type of audit productivity and performance statistics reported.

The adequacy of the day-to-day supervision and review process.

The scope and frequency of external assessments.