CRMA — Certification in Risk Management Assurance Auditor Practice Questions

Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

• AA. A Bedford analysis of orders filled to average delivery times.
• BB. Decision trees rating actual performance against requirements.
• CC. Queuing theory to assess potential bottlenecks in the process.
• DD. A program evaluation and review technique chart.

During an engagement, an internal auditor decided to use variance analysis as an auditing techniques. Which of the following steps should the auditor pursue if he discovers unexpected deviations of actual results from budget?

• AA. Report the deviations immediately to the audit committee.
• BB. Gather additional information to determine the cause of the deviations.
• CC. Conclude that the budget was unreasonably set and accept the deviations.
• DD. Perform alternative forms of analytical procedures which provide no deviations.

A candidate has applied for an entry level internal audit position. The candidate holds a CISA (Certified Information Systems Auditor) designation, and has six months of audit experience, but limited knowledge of accounting principles and techniques. According to the IIA guidance, which of the following is the most relevant reason for the chief audit executive to consider this candidate?

• AA. Other internal auditors possess sufficient knowledge of accounting principles and techniques.
• BB. The candidate's information systems knowledge and real-world experience in internal auditing.
• CC. Accounting skills can be learned over time with appropriate training.
• DD. An entry level position does not require expertise in any particular area.

An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment. Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?

• AA. Confidentiality.
• BB. Objectivity.
• CC. Integrity.
• DD. Competency.