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IIA IIA-CRMA-ADV Exam Syllabus Topics:

IIA Certification in Risk Management Assurance Sample Questions:

1. A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

A) From sharing to reduction.
B) From sharing to avoidance.
C) From acceptance to avoidance.
D) From acceptance to reduction.

2. According to IIA guidance, which of the following is least compliant with the requirements regarding an internal auditor's need for objectivity?

A) An internal auditor assessed the effectiveness of controls over payroll software, which he had helped implement with a previous employer.
B) An internal auditor participated in an audit of controls around absenteeism, despite providing some consultation on controls in this area earlier in the year.
C) An internal auditor, previously employed in the quality assurance operations area, performed a consulting engagement for the operations manager.
D) An internal auditor performed an assurance engagement for the effectiveness of accounts payable access controls, one of which he previously helped to design.

3. According to The MA Code of Ethics, which of the following is one of the rules of conduct for objectivity?

A) Internal auditors shall respect and contribute to legitimate and ethical objectives of the organization.
B) Internal auditors shall not accept anything that may impair or be presumed to impair their professional judgment.
C) Internal auditors shall continually improve their proficiency and effectiveness and quality of their services.
D) Internal auditors shall be prudent in the use and protection of information acquired in the course of their duties.

4. Which of the following is a weakness of observation as audit evidence?

A) It cannot be used to test the occurrence assertion.
B) It cannot be relied upon because the evidence is not persuasive.
C) It cannot be used to test the existence assertion.
D) It cannot be used to test the completeness assertion.

5. An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

A) Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.
B) Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.
C) Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.
D) Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

Solutions: