IIA IIA-CRMA real exam prep : Certification in Risk Management Assurance (CRMA) Exam

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?

• A. Replace the auditor with another audit staff member.
• B. Work with the division's management to resolve the situation.
• C. Withdraw the audit team and outsource the financial audit of the division.
• D. Continue with the present auditor, as more than one year has passed.

A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up.
Which of the following statements is true about the auditor's actions?

• A. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.
• B. They are in violation of neither the IIA Code of Ethics nor the Standards.
• C. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.
• D. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.

Which of the following actions should an internal auditor take to exercise due professional care?
1. Consider the probability of significant noncompliance in each audit engagement.
2. Weigh the cost of assurance against the benefits.
3. Perform assurance procedures with sufficient care to ensure that all risks are identified.

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

Management has asked the chief audit executive (CAE) to provide assurance on the organization's automated control system related to financial data. The current audit staff does not have the expertise needed to conduct this type of engagement. Which of the following would be the best response by the CAE?

• A. Accept the assignment if the engagement is included in the current audit plan, but inform senior management that the current audit staff does not have the knowledge and skills required.
• B. Accept the assignment and use control self-assessment to complete the project.
• C. Accept the assignment and use an external provider with the necessary knowledge and skills to perform the engagement.
• D. Do not accept the assignment because the internal audit activity lacks the competency to perform the engagement with due professional care.

According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?
When auditing investments, the auditor identified instruments with which he was unfamiliar.

• A. An auditor in charge needed to have testing completed by the end of the month, but was behind schedule. He identified a junior auditor to conduct the work for him on a complex area of the organization.
• B. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to perform a proper assessment.
• C. An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.
• D. An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.