Valid IIA-CRMA Exam Q&A PDF IIA-CRMA Dump is Ready (Updated 285 Questions) [Q124-Q146]

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Valid IIA-CRMA Exam Q&A PDF IIA-CRMA Dump is Ready (Updated 285 Questions)

Exam Questions and Answers for IIA-CRMA Study Guide

NO.124 According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

To enable Triple Bottom Line reporting capability.

To facilitate the conduct of risk assessment.

To achieve and maintain sustainable development.

To fulfill regulatory and compliance requirements.

NO.125 An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

NO.126 Which segregation of duties would best reduce the risk of payroll fraud?

Human resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee’s bank account.

Human resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

Human resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

Human resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee’s bank account.

NO.127 An accounts receivable clerk receives cash payments, posts the payments to customer accounts, and prepares the daily cash deposit.
The clerk has been stealing some cash and manipulating the customer payments to hide the theft.
This fraud could be detected with which of the following controls?

Monthly bank reconciliations are performed by the clerk on a timely basis.

Total cash deposits for the month are reconciled to the cash receipts journal.

Names, amounts, and dates on remittance advices are reconciled with the names, amounts, and dates recorded in the cash receipts journal.

Total cash deposits are compared with the bank reconciliation.

NO.128 Which of the following actions would be characterized as a preventive control to safeguard inventory from the risk of theft?
1. Locking doors and physically securing inventory items.
2. Independently observing the receipt of materials.
3. Conducting monthly inventory counts.
4. Requiring the use of employee ID badges at all times.

1 and 3.

1 and 4.

2 and 3.

2 and 4.

NO.129 Which of the following are core responsibilities to be included in the internal audit charter?
1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
2. Determine the adequacy and effectiveness of the organization’s systems of internal accounting and operating controls.
3. Participate in the planning and performance of audits of potential acquisitions with the organization’s outside accountants and other members of the corporate staff.
4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

1 and 2.

1 and 4.

2 and 3.

2 and 4.

NO.130 Which of the following actions does not violate the IIA Code of Ethics or Standards?

An internal auditor performing an audit on an operation that they managed less than a year ago.

An internal auditor performing an audit on procedures that they were responsible for creating.

An internal auditor disclosing details of an audit report to colleagues from a different organization.

An internal auditor disclosing confidential information in response to a lawsuit.

NO.131 A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO’s internal control framework?

Control environment.

Control activities.

Information and communication.

Monitoring activities.

NO.132 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.

NO.133 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.

1 and 2.

1 and 3.

2 and 3.

3 and 4.

NO.134 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?

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

The CAE completes an engagement working paper checklist.

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

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

NO.135 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.

NO.136 Which of the following would be considered a violation of The IIA’s mandatory guidance on independence?

The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.

The board seeks senior management’s recommendation before approving the annual salary adjustment of the CAE.

The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.

The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.

NO.137 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?

Three months.

Six months.

One year.

Two years.

NO.138 An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization.
Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

The periodic rotation of procurement officers’ assignments to supplier accounts.

A pre-award financial capacity analysis of suppliers.

An automated computer report, organized by supplier, of any invoices for the same amount.

Periodic inventories of kiln-dried wood at the organization’s warehouse.

NO.139 According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

Rating each engagement record to assess its relevance and accessibility for the organization’s board.

Controlling access to engagement records, including access by senior management.

Developing retention requirements for engagement records that are consistent with organizational guidelines.

Forming policies governing the custody and retention of consulting engagement records before their release to other parties.

NO.140 Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.

The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.

Security cameras that monitor cash handling at the register are not functioning.

The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.

NO.141 Which of the following types of social responsibilities is voluntary and guided purely by the organization’s desire to make social contributions?

The bottom of the pyramid responsibility.

Innovative responsibility.

Ethical responsibility.

Discretionary responsibility.

NO.142 When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.
4. Losing bidders are hired as subcontractors.

1 only

2 only

1 and 3.

2 and 4.

NO.143 According to IIA guidance, which of the following statements is false regarding continuing professional education for the internal audit activity (IAA)?

Continuing professional education can be obtained through IAA involvement in research projects.

Employers are responsible for ensuring that the continuing professional education needs of the IAA are met.

Completion of self-study courses fulfills IAA continuing professional education requirements.

Specialized education that meets unique organizational needs cannot qualify as IAA professional development.

NO.144 Which of the following would most likely be considered a red flag for fraud?

An organization lacks a whistleblower hotline for reporting suspicious activity.

A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.

An employee in charge of payroll disbursements has rotated these duties with several colleagues.

An employee with significant personal debt is in charge of handling large wire transfers for the organization.

NO.145 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

NO.146 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?

$11, 250

$25, 000

$33, 750

$45, 000

The Certification in Risk Management Assurance (CRMA) offered by the Institute of Internal Auditors (IIA) is a highly respected certification for professionals in the risk management field. The CRMA exam is designed to test the candidate’s knowledge of risk management principles, practices, and techniques. Certification in Risk Management Assurance (CRMA) Exam certification is aimed at professionals who are responsible for managing risks within an organization, including internal auditors, risk management professionals, and compliance officers.

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