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

Management is developing and implementing a risk and control framework for use throughout the organization. Which of the following elements should be included in the organization's control framework?1. Appropriate levels of authority and responsibility.2. Supervision of staff and appropriate review of work.3. The seniority of management in the organization.4. The ability to trace each transaction to an accountable and responsible individual.

• 1,2, and 3.
• 1.2, and 4.
• 1.3, and 4.
• 2, 3, and 4.

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

• Segregation of duties.
• Exception reports.
• Incentive compensation plans.
• Automated reconciliations.

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

• Leadership.
• Documentation.
• Analysis.
• Reporting.

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

• Establish and provide continuing assurance on an anti-money laundering program for new hires.
• Survey employees for their understanding of anti-money laundering practices.
• Provide assurance for the effectiveness of anti-money laundering training.
• Assess the risk of being fined for ineffective anti-money laundering practices.

Which of the following statements describes impairment to the internal auditor's objectivity?

• An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
• An internal auditor reduces the scope of an audit engagement due to budget restrictions.
• An internal auditor receives a promotional gift that is available to the organization's employees.
• An internal auditor performs an assessment of the operations for which he was recently responsible.

According to IIA guidance, which of the following statements about working papers is false?

• They assist in the implementation of recommendations.
• They provide support for communication to third parties.
• They demonstrate compliance with auditing standards.
• They contribute to development of the internal audit staff.

Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?

• The internal audit activity has to ensure team members' objectivity is not impaired.
• Auditors cannot participate in an assurance engagement of a function for which they previously performed a consulting engagement.
• The scope and objective of the engagement is agreed upon based on the engagement client's needs.
• The internal audit activity must ensure management actions have been implemented effectively or risk accepted.

According to The IIA's Code of Ethics, which of the following is true?

• Confidentiality requires that auditors disclose all material facts known to them.
• Integrity requires that auditors perform internal audit services in accordance with the Standards.
• Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.
• Confidentiality requires that auditors be prudent in the use and protection of client information.

An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

• Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.
• Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.
• Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.
• Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.

Which the following activities should be performed by the internal audit activity to facilitate an effective relationship with the audit committee?1. Periodically report about the accounting standards followed by the organization.2. Provide assurance to the audit committee that its charter, activities, and processes are appropriate.3. Ensure that the role and activities of the internal audit activity are clearly understood and responsive to the needs of the audit committee.4. Maintain open and effective communications with the audit committee.

• 1 and 2 only
• 3 and 4 only
• 1, 3, and 4 only
• 2, 3, and 4 only