Certification in Risk Management Assurance (IIA-CRMA-ADV) Free Practice Test

Question 1

The results of an internal audit activity's (IAA) quality assurance and improvement program are favorable and an external assessment was completed within the last five years. Which of the following statements may the IAA use to describe its work?

A. "Completed with the advance certification of the External Assessors Association for Auditing Review."

B. "Conforms with the International Standards for the Professional Practice of Internal Auditing."

C. "Certified 100% accuracy, per the International Standards of External Assessment."

D. "Compliant with all domestic and international legal statutes, and certified quality assured for ten years."

Correct Answer: B

Question 2

An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?

A. Management modifies the product division to minimize errors.

B. Management outsources the product division to a third party.

C. Management allows the product division to remain unchanged.

D. Management sells the product division to a competitor.

Correct Answer: A

Question 3

Which of the following is not an appropriate activity for internal auditors to perform?

A. Implement solutions for specific organizational problems.

B. Recommend management seek a consulting firm to advise on outsourcing.

C. Highlight matters that require management's attention.

D. Accumulate data, obtain varying views, and report information to senior management.

Correct Answer: A

Question 4

Which of the following is an example of a risk management avoidance response?

A. Recalling a product.

B. Exiting a marketplace.

C. Obtaining product insurance.

D. Outsourcing production.

Correct Answer: B

Question 5

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. Internal audit activity.

B. Senior management.

C. Board of directors.

D. All employees.

Correct Answer: C

Question 6

An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?

A. Utilize dedicated and encrypted network connections.

B. Utilize secure socket layer encryption.

C. Apply antivirus and patch management software.

D. Install a software inventory management application.

Correct Answer: D

Question 7

A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?

A. Organizational independence.

B. Individual objectivity.

C. Individual independence.

D. Due professional care.

Correct Answer: D

Question 8

Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

A. Assist the CAE with hiring objective and competent internal audit staff.

B. Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).

C. Approve the annual budget and resource plan for the internal audit activity.

D. Encourage the CAE to communicate and coordinate with the external auditor.

Correct Answer: B

Question 9

When conducting an interview, an internal auditor is most likely to ask open-ended questions in order to:

A. Determine agreement or disagreement with a stated viewpoint.

B. Obtain information based on the person's own perspective.

C. Obtain specific answers and maximize efficiency.

D. Gather factual data on several different topics.

Correct Answer: B

Question 10

Which of the following are components of the ISO 31000 risk management process?
1. Setting the context.
2. Risk treatment.
3. Risk avoidance.
4. Communication.

A. 1,2, and 4.

B. 1 and 2 only.

C. 3 and 4.

D. 2 and 3.

Correct Answer: B

Question 11

A former line supervisor from the Financial Services Department has completed six months of a two-year development opportunity with the internal audit activity (IAA). She is assigned to a team that will audit the organization's payroll function, which is managed by the Human Resources Department. Which of the following statements is most relevant regarding her independence and objectivity with respect to the payroll audit?

A. She may participate for training purposes, to build her knowledge of the IAA.

B. She may participate, because she did not previously work in the Human Resources Department.

C. She may participate, but only after she has completed one year with the IAA.

D. She may participate, but she must be supervised by the auditor in charge.

Correct Answer: B

Question 12

Which of the following is an example of collusion?

A. A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.

B. A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.

C. An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

D. An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.

Correct Answer: B

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IIA Certification in Risk Management Assurance (IIA-CRMA-ADV) Free Practice Test