IIA-CRMA-ADV V1

During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?A . Report the deviations immediately to the audit committee.B . Gather additional information to determine the...

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?A . Management may be concerned about its reputation in the financial markets.B . Management is...

An internal audit charter describes the mission and scope of the internal audit activity (IAA), responsibilities of the IAA, accountability of the chief audit executive, independence of the IAA, and standards followed by the IAA. Which of the following also should be included in the charter? A. The purpose of...

Why is a code of ethics for the internal audit profession necessary?A . It ensures that all members of the profession possess the same level of competence.B . It provides auditors with protection from lawsuits.C . It guides internal auditors in their service to others.D . It requires auditors to...

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...

An internal auditor notes that employees are able to download files from the internet. According to IIA guidance, which of the following strategies would best protect the organization from the risk of copyright infringement and licensing violations resulting from this practice?A . Apply antivirus and patch management software.B . Utilize...

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...

The director of purchasing, a certified internal auditor (CIA), signs a contract to procure a large order from a supplier whose products provide the best price, quality, and performance. A few days after signing the contract, the supplier presents the CIA with $1, 000 as a gift. Which statement regarding...

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?A . Demonstrated compliance...

Which of the following scenarios exemplifies a potential internal control weakness?A . The same employee who receives cash from customers prepares a prelisting of cash receipts.B . The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.C . The...