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IIA Certification in Risk Management Assurance (CRMA) Exam Sample Questions (Q92-Q97):

NEW QUESTION # 92
Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.

  • A. 1, 2, and 3
  • B. 3 only
  • C. 2 and 3 only
  • D. 1 and 2 only

Answer: C


NEW QUESTION # 93
When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?
1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.
4. Losing bidders are hired as subcontractors.

  • A. 2 and 4.
  • B. 1 and 3.
  • C. 2 only
  • D. 1 only

Answer: A


NEW QUESTION # 94
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 from suppliers?

  • A. A pre-award financial capacity analysis of suppliers.
  • B. Periodic inventories of kiln-dried wood at the organization's warehouse.
  • C. The periodic rotation of procurement officers' assignments to supplier accounts.
  • D. An automated computer report, organized by supplier, of any invoices for the same amount.

Answer: C


NEW QUESTION # 95
Which of the following is an example of a directive control?

  • A. Incentive compensation plans.
  • B. Segregation of duties.
  • C. Automated reconciliations.
  • D. Exception reports.

Answer: A


NEW QUESTION # 96
An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

  • A. Shareholders and investors.
  • B. Marketplace competition.
  • C. Working conditions.
  • D. Employees' families.

Answer: D


NEW QUESTION # 97
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