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Free IIA IIA-CRMA Sample Questions
Question 1
Which of the following enhances the independence of the internal audit activity?
A. The chief audit executive (CAE) approves the annual internal audit plan.
B. The CAE administratively reports to the board.
C. The audit committee approves the CAE's annual salary increase.
D. The chief executive officer approves the internal audit charter.
Answer: C
Question 2
An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?
A. The residual risk is lower than or equal to the risk appetite.
B. The residual risk is higher than or equal to the risk appetite.
C. The inherent risk is lower than or equal to the risk tolerance.
D. The inherent risk is higher than or equal to the risk tolerance.
Answer: A
Question 3
According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?
A. Control environment.
B. Control activities.
C. Risk assessment.
D. Monitoring.
Answer: D
Question 4
During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?
A. Definition of Internal Auditing.
B. MA Standards.
C. Internal audit charter.
D. The IIA's Code of Ethics
Answer: C
Question 5
A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?
A. Preparing the financial statements for the company's defined contribution plan.
B. Performing a pre-implementation review of the company's payroll application.
C. Providing the COBIT framework as a possible IT management tool.
D. Reviewing the company's policy for foreign currency translation adjustments for compliance with
accounting standards.
Answer: A
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