IIA-CRMA by IIA Actual Free Exam Q&As

Question 1

A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

A. Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider. B. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis. C. Use computer software to identify abnormal claims based on the insured's age and medical history. D. Require the physician to submit a signed statement attesting that the treatments had been performed.

Discussion 0

Correct Answer: C Vote an answer

Question 2

According to IIA guidance, which of the following should be included in the internal audit charter?

A. Assigned responsibilities for designing and implementing controls. B. The minimum resources and competencies needed for the internal audit activity. C. Identification of the organizational units where engagements are to be performed. D. Organizational relationships and reporting lines.

Discussion 0

Correct Answer: D Vote an answer

Question 3

Which of the following would be considered a violation of The IIA's mandatory guidance on independence?

A. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer. B. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline. C. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE. D. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.

Discussion 0

Correct Answer: C Vote an answer

Question 4

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. Which conclusion should the auditor draw from this data?

A. The gross margin has decreased. B. Cash or accounts receivable has decreased. C. The gross margin has increased. D. The division produced fewer items this year than in prior years.

Discussion 0

Correct Answer: B Vote an answer

Question 5

What should the internal auditor's role be in assessing the organization's ethical climate?

A. Perform background checks of potential new employees before they are hired by the organization. B. Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and B.
processes for achieving the desired level of legal and ethical compliance. C. Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.

Discussion 0

Correct Answer: C Vote an answer

Question 6

An internal auditor needs to recommend a policy element to be included in an organization's code of ethics.
Which of the following recommendations would be most effective?

A. Ethical behavior should be incorporated into performance evaluations. B. Whistleblowing should be discouraged because it can cause distrust among employees. C. Senior management should be granted specific exemptions to the code of ethics. D. Ethics should vary with local customs in the organization's foreign operations.

Discussion 0

Correct Answer: A Vote an answer

Question 7

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

A. Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud. B. Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly. C. Immediately notify management of the area under review and the other internal auditors involved in the engagement. D. Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.

Discussion 0

Correct Answer: C Vote an answer

Question 8

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. Coordination. B. Due professional care. C. Engagement supervision. D. Resource management.

Discussion 0

Correct Answer: B Vote an answer

IIA Certification in Risk Management Assurance (CRMA) - IIA-CRMA Exam Practice Test