IIA-CRMA Online Practice Questions and Answers

Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

A. The CAE initials and dates every working paper after it has been reviewed.

B. The CAE completes an engagement working paper checklist.

C. The CAE prepares a memorandum discussing the results of the working paper review.

D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.

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.

According to the Standards, for how long should internal auditors who have previously performed or had management responsibility for an operation wait to become involved in future internal audit activity with that same operation?

A. Three months.

B. Six months.

C. One year.

D. Two years.

An internal auditor for a large retail chain suspects that a store manager has been stealing money from cash sales by listing the sales as accounts receivable and then writing off the accounts as bad debts. Which of the following irregularities is the most likely cause of the auditor's suspicion?

A. A much higher bad debt expense as a percentage of sales than that of previous years.

B. A much higher bad debt expense as a percentage of sales than that of other stores.

C. A much higher percentage of past-due accounts receivable than that of other stores.

D. A much higher percentage of past-due accounts receivable than that of previous years.

An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter?

A. The purpose of the IAA.

B. The IAA's right to have unrestricted access to functions, records, personnel, and physical property.

C. A detailed audit plan or program for the year.

D. The job specifications and descriptions of the internal audit staff.

Which of the following risk management activities is most appropriate for an internal auditor to undertake?

A. Impose risk management processes.

B. Coordinate risk management activities.

C. Implement risk responses on management's behalf.

D. Review the management of key risks.

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?

A. Replace the auditor with another audit staff member.

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

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

D. Work with the division's management to resolve the situation.

A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

A. Require the physician to submit a signed statement attesting that the treatments had been performed.

B. Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.

C. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

D. Use computer software to identify abnormal claims based on the insured's age and medical history.

An internal auditor is conducting an assessment of the organization's fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?

1.

The organization uses an automated authority approval matrix to control payments.

2.

The organization has a whistleblower hotline that is available to employees.

3.

Annually, every manager completes a comprehensive fraud assessment of his or her department.

4.

Annually, the organization reviews and communicates the code of expected behavior.

A. 1 and 2.

B. 1 and 3.

C. 2 and 3.

D. 2 and 4.

The chief audit executive (CAE) is planning to conduct an internal assessment of the internal audit activity (IAA). Part of this assessment will include benchmarking. According to IIA guidance, which of the following qualitative metrics would be appropriate for the CAE to use?

1.

Average client customer satisfaction score for a given year.

2.

Client survey comments on how to improve the IAA.

3.

Auditor interviews once an audit has been completed.

4.

Percentage of audits completed within 90 days.

A. 1 and 2.

B. 1 and 3.

C. 2 and 3.

D. 3 and 4.