IIA-CRMA

Which of the following best describes the assessment of risks?A . Assess the actions necessary to reduce the likelihood and/or impact of risk to tolerable levels.B . Assess the likelihood and/or impact of risk on the achievement of organizational objectives.C . Assess the amount of risk an organization can accept...

Which of the following statements is true regarding the use of non-statistical sampling in auditing control tests?A . It considers tolerable deviation rate more effectively than does statistical sampling.B . Sampling risk will be accurately quantified through non-statistical sampling.C . Non-statistical sample results must be projected to the population.D ....

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...

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 are preventative controls generally preferred to detective controls?A . Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.B . Because preventive controls are more sensitive and identify more exceptions than detective controls.C . Because preventive controls include output procedures,...

A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?A . The CAE should not interfere...

While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?A . Resource management.B . Coordination.C . Due...

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...

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?A . Three months.B . Six months.C . One year.D . Two years.View AnswerAnswer: C

According to IIA guidance, which of the following statements regarding the internal audit charter is true?A . Senior management should approve the charter before it is submitted to the board.B . The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.C . The...