Free IIA IIA-CRMA-ADV Exam Questions

Become IIA Certified with updated IIA-CRMA-ADV exam questions and correct answers

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Total 283 Questions | Updated On: Jul 14, 2025

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Question 1

An internal audit charter, approved by the board, restricts the internal audit activity to providing assurance only on the reliability of financial information and the effectiveness of internal accounting controls. Which of the following statements is true regarding the extent to which the external auditor may rely on the internal audit activity's work?

A : external auditor may make full use of the work, as the audit charter is very specific as to the work the internal audit activity may undertake.

B : external auditor may use the work, as the board has approved the charter, thus taking responsibility for any deficiencies.

C : external auditor must disregard the work, as the scope of the charter may introduce bias and result in a lack of due professional care.

D : external auditor may use the work with caution, due to the internal audit activity's scope and responsibility restrictions.

Answer: D

Question 2

According to The IIA's Code of Ethics, which of the following statements is true?

A : en an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.

B : en an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

C : en an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.

D : en an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.

Answer: C

Question 3

Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

A : CAE initials and dates every working paper after it has been reviewed.

B : CAE completes an engagement working paper checklist.

C : CAE prepares a memorandum discussing the results of the working paper review.

D : CAE utilizes an external third party to make an objective recommendation after each working paper review.

Answer: D

Question 4

Which segregation of duties would best reduce the risk of payroll fraud?

A : man resources personnel add employees, and payroll personnel process hours and enter employee bank account numbers. Paychecks are automatically deposited in the employee's bank account.

B : man resources personnel add employees, payroll personnel process hours, and human resources personnel deliver paychecks to employees.

C : man resources personnel add employees, review and submit payroll hours to the payroll department for processing, and deliver paychecks to employees.

D : man resources personnel add employees and enter employee bank information. Payroll personnel process hours, and paychecks are automatically deposited in the employee's bank account.

Answer: A

Question 5

Which of the following conditions is the most likely indicator of fraud?

A : mmissions are paid based on verified increases to sales.

B : partmental reports are consistently issued in an untimely manner.

C : manager regularly assumes subordinates' duties.

D : wer earnings occur during the industry's down cycle.

Answer: C

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Total 283 Questions | Updated On: Jul 14, 2025

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