2023 Updated Verified IIA-CRMA-ADV dumps Q&As – 100% Pass Guaranteed [Q165-Q189]

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2023 Updated Verified IIA-CRMA-ADV dumps Q&As – 100% Pass Guaranteed

Provide Valid Dumps To Help You Prepare For Certification in Risk Management Assurance Exam

NEW QUESTION 165
An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?
1. Proficiency in analyzing key IT risks and controls.
2. The ability to recognize significant deviations from good business practices.
3. Knowledge of key indicators of fraud in tax reporting.
4. The ability to recognize the existence of problems related to tax accounting.

1 and 4 only.

3 and 4 only.

2, 3, and 4 only.

1,2, 3, and 4.

NEW QUESTION 166
Which type of objectives can best be described as broad goals that promote the effective and efficient use of resources?

Strategic objectives.

Operational objectives.

Reporting objectives.

Compliance objectives.

NEW QUESTION 167
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

Evaluating risk management processes.

Recommending accountability for risk management.

Providing assurance that risks are evaluated correctly.

Supporting managers to identify ways to mitigate risks.

NEW QUESTION 168
Which of the following enhances the independence of the internal audit activity?

The chief audit executive (CAE) approves the annual internal audit plan.

The CAE administratively reports to the board.

The audit committee approves the CAE’s annual salary increase.

The chief executive officer approves the internal audit charter.

NEW QUESTION 169
Which of the following professional development approaches would offer internal auditors the most opportunities to broaden their engagement experiences?

Assign more experienced internal auditors to mentor the less experienced auditors.

Send internal auditors to external trainings in advanced internal audit topics.

Appraise internal auditors’ performance and competencies at least annually and issue constructive feedback.

Rotate internal auditors among different engagement assignments.

NEW QUESTION 170
A chief audit executive (CAE) is reviewing the internal audit activity’s performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity’s quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

The overall effectiveness of the internal audit activity’s periodic self assessments.

The type of audit productivity and performance statistics reported.

The adequacy of the day-to-day supervision and review process.

The scope and frequency of external assessments.

NEW QUESTION 171
An internal auditor needs to recommend a policy element to be included in an organization’s code of ethics.
Which of the following recommendations would be most effective?

Ethics should vary with local customs in the organization’s foreign operations.

Whistleblowing should be discouraged because it can cause distrust among employees.

Ethical behavior should be incorporated into performance evaluations.

Senior management should be granted specific exemptions to the code of ethics.

NEW QUESTION 172
Which of the following audit techniques is used to evaluate control design while also embodying auditing’s analytical process?

A risk and control matrix.

A flowchart.

A walk-through.

A process narrative.

NEW QUESTION 173
Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management’s decision is least plausible?

Management may be concerned about its reputation in the financial markets.

Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.

Management may perceive that having quarterly financial information examined by the internal auditors enhances the information’s value to internal decision making.

NEW QUESTION 174
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.

NEW QUESTION 175
With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization’s risk appetite.

Evaluate the organization’s governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization’s risk appetite.

Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.

Assess whether governance activities are aligned with the organization’s risk appetite and take into consideration emerging risks.

NEW QUESTION 176
In which of the following functions would fraud be most likely to occur?

Maintaining custody of inventory records.

Collecting payments on accounts.

Approving changes to employee records.

Preparing customer statements.

NEW QUESTION 177
The security department uncovered what appears to be a complex fraud in the accounting department. The CEO has requested the internal audit activity to investigate the fraud. If the internal audit staff lacks the expertise to conduct the investigation, how should the chief audit executive proceed?

Disclose the deficiency, and request that the investigation be reassigned to the first line of defense.

Proceed with the investigation, as internal auditors are not required to have fraud expertise.

Outsource the sensitive investigation to a third-party consultant with fraud expertise.

Select a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.

NEW QUESTION 178
The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive’s primary focus to achieve these recommended improvements?

Demonstrated compliance with procedures.

Due professional care.

Engagement supervision.

Employment of tools and techniques.

NEW QUESTION 179
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.

NEW QUESTION 180
A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

Require the physician to submit a signed statement attesting that the treatments had been performed.

Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.

Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

Use computer software to identify abnormal claims based on the insured’s age and medical history.

NEW QUESTION 181
Which of the following is the best way to detect fraud?

Conduct anti-fraud training.

Perform background investigations.

Implement process controls.

Activate a whistleblower hotline.

NEW QUESTION 182
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.

NEW QUESTION 183
An internal auditor uses a predefined macro provided in a popular spreadsheet application to verify the present value of the organization’s investments. Which of the following is the most appropriate course of action regarding the auditor’s use of this functionality?

The auditor should accept the calculations generated by the function, as any further work or documentation would be inefficient.

The auditor should perform a manual recalculation of several results to validate and document the results.

The auditor should review the programming of the macro before its use to ensure that it is appropriate for the required calculations.

The auditor should tabulate the results in the spreadsheet to ensure the macro has generated the correct results for all calculations.

NEW QUESTION 184
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.

NEW QUESTION 185
According to IIA guidance, the results of a formal quality assessment should be reported to which of the following groups?

The audit committee and senior management.

The audit committee and the external auditors.

Senior management and management of the audited area.

Senior management and the external auditors.

NEW QUESTION 186
An organization’s chief audit executive (CAE) determines that the internal audit staff does not have the requisite skills to conduct an audit of the financial derivatives area. Which of the following would be the best course of action for the CAE to follow?

Outsource the audit engagement to a qualified external auditing firm without burdening the audit committee with the decision.

Determine the requisite knowledge needed, and obtain the proper training for auditors, even if the training will significantly push back the project’s timeframe as outlined by the audit committee.

Notify the audit committee of the problem, and assign the most competent auditors on staff to perform the audit engagement.

Employ the skills of a financial derivatives expert to consult on the project, and supplement the consulting with a local seminar on financial derivatives.

NEW QUESTION 187
An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?

Replace the auditor with another audit staff member.

Continue with the present auditor, as more than one year has passed.

Withdraw the audit team and outsource the financial audit of the division.

Work with the division’s management to resolve the situation.

NEW QUESTION 188
Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

Observation of the facility during operations.

Questioning of facility management, including the facility safety officer.

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

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

NEW QUESTION 189
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.

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