Question No. 1

Which of the following best ensures the independence of the internal audit activity?

1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.

2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.

3. The internal audit charter requires the CAE to report functionally to the audit committee.

A3 only

B1 and 2 only

C2 and 3 only

D1, 2, and 3

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Correct Answer: C

Question No. 2

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

AManagement will be able to reduce inherent risk because they will have a better understanding of risk.

BInternal auditors will be able to reduce their sample sizes because controls will be more consistent.

CStakeholders will have more assurance that the risks are assessed consistently.

DDecision makers will understand that the likelihood of missing or ineffective controls will be reduced.

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Correct Answer: C

Question No. 3

Which of the following is a common type of payroll fraud?

AUnauthorized overtime.

BFictitious employees.

CUnearned bonuses or commissions.

DSkimming.

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Correct Answer: B

Question No. 4

Which of the following best explains why integrity is a necessary personal quality for internal auditors at all levels?

AInternal auditor integrity enables stakeholders to constantly question the work of the internal audit activity.

BInternal auditor integrity enables the internal auditor to avoid being challenged by any party in the organization.

CInternal auditor integrity enables the internal audit activity to be able to demonstrate independence.

DInternal auditor integrity enables users of internal auditors' work to make important business decisions.

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Correct Answer: D

Question No. 5

What is the purpose of a secondary control?

AIt replaces primary controls that are either ineffective or cannot fully mitigate a risk.

BIt partially reduces the residual risk level when a key control does not operate effectively.

Clt combines with other controls to help reduce significant risk exposures to an acceptable level.

DIt helps to ensure the completeness and accuracy of automated controls in a system environment.

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Correct Answer: C

Free IIA IIA-CRMA Exam Actual Questions

The questions for IIA-CRMA were last updated On Dec 18, 2024