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IIA IIA-CRMA-ADV Exam Syllabus Topics:

IIA Certification in Risk Management Assurance Sample Questions:

1. Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

A) Apply problem-solving techniques for routine situations.
B) Maintain industry-specific knowledge appropriate to the audit engagements
C) Set clear performance standards for internal auditors and the internal audit activity.
D) Manage and support a quality assurance and improvement program.

2. Which of the following would most likely be considered a red flag for fraud?

A) An employee with significant personal debt is in charge of handling large wire transfers for the organization.
B) A senior manager has been delegating the authority to sign-off on small dollar amount purchases to a subordinate.
C) An employee in charge of payroll disbursements has rotated these duties with several colleagues.
D) An organization lacks a whistleblower hotline for reporting suspicious activity.

3. An internal auditor is using a spreadsheet application to review a cash flow forecast prepared by management.
Which of the following correctly identifies the type of evidence this information represents?

A) Sufficient, circumstantial evidence of the future solvency of the organization.
B) Competent, corroborative evidence of future working capital requirements.
C) Competent, documentary evidence of future cash flow changes within the organization.
D) Sufficient, analytical evidence of the cash flow position at a given point of time in the future.

4. An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate).
Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?

A) Acceptance sampling.
B) Ratio estimation.
C) Stratification.
D) Variability tolerance.

5. An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

A) Higher inventory turnover.
B) Higher operating margin.
C) Lower obsolete stock disposal.
D) Lower sales volume.

Solutions: