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

Question 1

Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

A. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.

B. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.

C. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.

D. The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.

Correct Answer: D

Question 2

Which of the following scenarios best illustrates the principle of due professional care?

A. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.

C. An internal auditor evaluates the significant risks arising from a consulting engagement.

D. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.

Correct Answer: C

Question 3

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

A. Postpone the audit until the CAE hires internal audit staff with the required knowledge.

B. Hire consultants who possess the required knowledge to perform the engagement.

C. Ask the audit committee to decide the course of action.

D. Select the most experienced auditors in the department to perform the engagement.

Correct Answer: B

Question 4

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

A. Observation of the facility during operations.

B. Analysis of facility operating reports, focusing on instances when breakdowns occurred.

C. Review of records involving safety violations, filed by facility production employees.

D. Questioning of facility management, including the facility safety officer.

Correct Answer: A

Question 5

Which of the following is an example of a directive control?

A. Automated reconciliations.

B. Segregation of duties.

C. Exception reports.

D. Incentive compensation plans.

Correct Answer: D

Question 6

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. $33, 750

B. $45, 000

C. $11, 250

D. $25, 000

Correct Answer: C

Question 7

Which of the following is an example of a transaction-level control?

A. Tone at the top.

B. Human resource policies.

C. Reconciliations of primary accounts.

D. Inventory counts.

Correct Answer: C

Question 8

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

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

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

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

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

Correct Answer: B

Question 9

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 10

Which of the following is the primary engagement responsibility of an entry-level internal auditor?

A. Leadership.

B. Documentation.

C. Reporting.

D. Analysis.

Correct Answer: D

Question 11

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

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

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

C. Risks in IT processes are best mitigated by individual controls.

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

Correct Answer: A

Question 12

A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?

A. Communication.

B. Governance, risk, and control.

C. Persuasion and collaboration.

D. Business acumen.

Correct Answer: A

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