[Full-Version] 2025 New Preparation Guide of IIA IIA-CRMA Exam [Q95-Q117]

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[Full-Version] 2025 New Preparation Guide of IIA IIA-CRMA Exam

IIA-CRMA Practice Exam – 285 Unique Questions

The CRMA certification is an internationally recognized credential that demonstrates the candidate’s expertise in risk management. Certification in Risk Management Assurance (CRMA) Exam certification is highly valued by employers and can lead to increased job opportunities and higher salaries. The CRMA certification is also a stepping stone to other certifications offered by the IIA, such as the Certified Internal Auditor (CIA) and the Certified Fraud Examiner (CFE).

NEW QUESTION 95
Which of the following is an example of a risk avoidance strategy?

Hedging against exchange rate variations.

Limiting access to an organization’s data center.

Selling a nonstrategic business unit.

Outsourcing a high-risk activity.

NEW QUESTION 96
Which of the following is an example of collusion?

An employee includes a faked receipt in his expense claim, and the claim is signed by the employee’s manager.

A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.

A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.

An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

NEW QUESTION 97
While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

Resource management.

Coordination.

Due professional care.

Engagement supervision.

NEW QUESTION 98
Which of the following is the most common way that occupational fraud is detected?

Internal audits.

Whistleblower hotline.

Key controls.

External audits.

NEW QUESTION 99
A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?

Control activities.

Information and communication.

Commitment.

Control environment.

NEW QUESTION 100
A new chief audit executive (CAE) of a large internal audit activity (IAA) is dissatisfied with the current amount and quality of training being provided to the staff and wishes to implement improvements. According to IIA guidance, which of the following actions would best help the CAE reach this objective?

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.

NEW QUESTION 101
In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

The CAE would need to procure external services to deliver the internal audit assurance program.

There is no expertise within the internal audit team for detecting and investigating fraud.

There is no expertise within the internal audit team for auditing an IT engagement.

There is no available expertise on the internal audit team to perform a consulting engagement.

NEW QUESTION 102
According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?
1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.

1 and 4 only

2 and 3 only

1, 2, and 3 only

1, 2, 3, and 4

NEW QUESTION 103
An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

NEW QUESTION 104
Which of the following best describes the misdirection of payments on accounts receivable to an employee’s bank account?

Fraud open on the books.

Fraud hidden on the books.

Fraud off the books.

Fraud on the balance sheet.

NEW QUESTION 105
An internal auditor would like to identify the involvement of various organizational units in handling employee travel reimbursement claims. Which of the following methods would be most effective and efficient in completing this task?

Process mapping.

Interviewing.

Monitoring.

Distributing questionnaires.

NEW QUESTION 106
Which of the following statements is true regarding assurance services provided to clients outside of the organization?

Assurance services for outside clients are not covered under the internal audit charter.

Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

The nature of assurance services for outside clients should be defined in the internal audit charter.

The nature of assurance services for outside clients is the same as for internal clients.

NEW QUESTION 107
Which of the following best describes the details that must be included in the quality assurance and improvement program (QAIP) report to senior management and the board?

The scope and frequency of internal and external assessments as well as the qualifications and independence of the assessor.

The scope and cost of the QAIP. frequency of internal and external assessments, and conclusions of the assessor.

The scope, findings, risks, recommendations, and agreed-upon improvement actions.

The number and types of people involved in the assessment, costs, and duration of the QAIP

NEW QUESTION 108
A fraud investigation was completed by management, and a proven fraud was communicated to relevant authorities. According to MA guidance, which of the following roles would be most appropriate for the internal audit activity to undertake after the investigation?

Plan employee sessions and team building strategies for the organization to improve awareness of fraud among employees.

Review the investigation and implement any improvements to the process.

Conduct lessons learned sessions to ascertain how the fraud occurred and which controls failed.

Determine why The fraud was not detected earlier and design controls to strengthen early detection.

NEW QUESTION 109
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?

Preparing the financial statements for the company’s defined contribution plan.

Performing a pre-implementation review of the company’s payroll application.

Providing the COBIT framework as a possible IT management tool.

Reviewing the company’s policy for foreign currency translation adjustments for compliance with accounting standards.

NEW QUESTION 110
A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company’s board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

Appoint the CAE as a member of the board.

Move the CAE’s functional reporting to an executive who is not on the board.

Obtain full board approval of the internal audit activity’s annual audit plan.

Move the CAE’s functional reporting to the audit committee.

NEW QUESTION 111
A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

From sharing to reduction.

From acceptance to reduction.

From sharing to avoidance.

From acceptance to avoidance.

NEW QUESTION 112
Which of the following would be considered a violation of The IIA’s mandatory guidance on independence?

The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.

The board seeks senior management’s recommendation before approving the annual salary adjustment of the CAE.

The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.

The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.

NEW QUESTION 113
Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

Manage and support a quality assurance and improvement program.

Maintain industry-specific knowledge appropriate to the audit engagements

Set clear performance standards for internal auditors and the internal audit activity.

Apply problem-solving techniques for routine situations.

NEW QUESTION 114
Why are preventative controls generally preferred to detective controls?

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.

NEW QUESTION 115
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?

Working conditions.

Employees’ families.

Marketplace competition.

Shareholders and investors.

NEW QUESTION 116
Which of the following is not a role of the internal audit activity in facilitating risk identification and evaluation?

Evaluating risk management processes.

Recommending accountability for risk management.

Providing assurance that risks are evaluated correctly.

Supporting managers to identify ways to mitigate risks.

NEW QUESTION 117
Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

Determine the organization’s overall risk appetite.

Establish a governance committee.

Delegate authority to members of senior management.

Identify key stakeholders and their expectations.

IIA-CRMA certification is ideal for internal auditors, risk managers, and other professionals who are responsible for managing risks within their organizations. Certification in Risk Management Assurance (CRMA) Exam certification program covers a broad range of topics, including risk assessment, risk management processes, risk reporting, and risk governance. The program is designed to equip professionals with the practical skills necessary to effectively manage risks and provide assurance to stakeholders.

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[Full-Version] 2025 New Preparation Guide of IIA IIA-CRMA Exam [Q95-Q117]

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