Pass the IIA CRMA IIA-CRMA-ADV Questions and answers with ValidTests

Management sells the product division to a competitor.

Management outsources the product division to a third party.

Management allows the product division to remain unchanged.

Management modifies the product division to minimize errors.

1 and 3.

1 and 4.

2 and 3.

2 and 4.

Commissions are paid based on verified increases to sales.

Departmental reports are consistently issued in an untimely manner.

A manager regularly assumes subordinates' duties.

Lower earnings occur during the industry's down cycle.

Management may be concerned about its reputation in the financial markets.

Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.

Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.

To depict the areas of responsibility for departments in an organization.

To plan and control complex projects, such as internal audits.

To represent the frequencies of adverse conditions in a given process.

To identify the possible causes of adverse conditions.

Impose risk management processes.

Coordinate risk management activities.

Implement risk responses on management's behalf.

Review the management of key risks.

Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.

Because preventive controls are more sensitive and identify more exceptions than detective controls.

Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.

Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.

Require that all staff obtain a minimum of two relevant audit certifications.

Perform a gap analysis of the IAA's existing knowledge, skills and competencies.

Engage a consultant to benchmark the IAA's training program against its peers.

Assign one experienced manager to better coordinate staff training and development activities.

Senior management should approve the charter before it is submitted to the board.

The charter should describe the purpose and authority of the internal audit activity, consistent with the Standards.

The charter should define the consulting services that the internal audit activity is permitted to perform.

The CEO periodically should assess whether the terms of the charter continue to be adequate.

Creating an audit trail.

Placing controls on physical access to inventory.

Reconciling purchase orders with approvals.

Reviewing expense accounts for irregularities.