IIA-CRMA-ADV V1

Which of the following would be considered a preventive control?A . A library control log.B . A review of exception reports.C . A password lock on a server.D . A software scan of financial records for irregularities.View AnswerAnswer: C

Which of the following controls is not appropriate for sales in a manufacturing organization?A . Customers' orders are recorded promptly.B . Goods shipped are matched with valid customer orders.C . Goods returned are inspected for damage by the receiving department for proper disposition.D . Sales department approval is required for...

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...

An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?A . Restrict...

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 conditions is the most likely indicator of fraud?A . Commissions are paid based on verified increases to sales.B . Departmental reports are consistently issued in an untimely manner.C . A manager regularly assumes subordinates' duties.D . Lower earnings occur during the industry's down cycle.View AnswerAnswer: C

Maintain open and effective communications with the audit committee.A . 1 and 2 onlyB . 3 and 4 onlyC . 1, 3, and 4 onlyD . 2, 3, and 4 onlyView AnswerAnswer: D

Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization’s senior management.A . 1 and 2 onlyB . 1 and 4 onlyC . 2 and 3 onlyD . 3 and 4 onlyView AnswerAnswer: A

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 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...