IIA-CRMA exam

Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?A . Hire a risk consultant.B . Implement a hedging strategy.C . Maintain a large foreign currency balance.D . Insist that customers only pay in a stable currency.View...

An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks...

Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?A . Evaluating risk management processes.B . Recommending accountability for risk management.C . Providing assurance that risks are evaluated correctly.D . Supporting managers to identify ways to mitigate risks.View AnswerAnswer: B

According to IIA guidance, which of the following objectives of an assurance engagement for the organization's risk management process is valid?A . All risks have been identified and mitigated.B . Risks have been accurately analyzed and evaluated.C . All controls are both adequate and efficient.D . The board is appropriately...

To identify potential efficiency improvements.A . 1 and 2.B . 1 and 3.C . 2 and 4.D . 3 and 4.View AnswerAnswer: D

An internal auditor makes a series of observations when performing an analytical review of division operations. The auditor notes the following things: the current ratio is increasing and the quick ratio is decreasing, sales and current liabilities have remained constant, and the number of day sales in inventory is increasing....

A chief audit executive (CAE) of an international charity reports functionally to the audit committee of the board of directors and administratively to the charity's chief financial officer (CFO). Which of the following would impair the internal audit function's independence?A . The CFO determines the scope of internal audit work...

During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing. Which of...

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...

Which of the following does not need to be defined in the internal audit charter?A . The audit engagements to be performed during the upcoming year.B . The internal audit activity's position within the organization.C . The scope of internal audit activities.D . Management and the board of directors' agreement...