IIA-CRMA-ADV

Which of the following is a preventive control?A . Creating an audit trail.B . Placing controls on physical access to inventory.C . Reconciling purchase orders with approvals.D . Reviewing expense accounts for irregularities.View AnswerAnswer: B

During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole. This is an example of which of the following analytical auditing procedures?A . Reasonableness test.B . Regression analysis.C . Benchmarking.D . Trend...

Which of the following conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C

Which of the following is the most significant disadvantage of using checklists to evaluate internal controls?A . They serve as a reminder of what controls should exist in a process.B . They require yes/no responses to specific questions, not open-ended responses.C . They do not capture all controls that may...

Which of the following is an example of a transaction-level control?A . Human resource policies.B . Tone at the top.C . Reconciliations of primary accounts.D . Inventory counts.View AnswerAnswer: C

Which of the following would be considered a preventive control?A . A library control log.B . A review of exception reports.C . A password lock on a server.D . A software scan of financial records for irregularities.View AnswerAnswer: C

Which of the following is not one of the 10 core competencies identified in the IIA Competency Framework?A . Governance, risk, and control.B . Performance management.C . Business acumen.D . Internal audit delivery.View AnswerAnswer: B

While attending a conference, an internal auditor won an all-expense paid trip sponsored by a vendor of the internal auditor's organization. Which of the following actions are most appropriate for the auditor to take?A . Consult with an immediate supervisor and notify the organization's audit committee.B . Consult with an...

What is the primary purpose of a fishbone diagram?A . To depict the areas of responsibility for departments in an organization.B . To plan and control complex projects, such as internal audits.C . To represent the frequencies of adverse conditions in a given process.D . To identify the possible causes...

A manufacturing organization discovers that the waste water released has failed to meet permitted limits. Which control function will be least effective in correcting the issue?A . Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.B . Posting signs that tell employees which...