CRMA Basic

Question 1

An internal auditor must suggest a policy aspect to be included in an organization's code of ethics. Which of the suggestions below would be the most effective?

Accepted Answer

Ethical behavior should be included in performance evaluations.

Answer

Including ethical behavior in performance evaluations directly links an employee's adherence to the code of ethics with their career progression and compensation. This provides a strong, tangible incentive for ethical conduct and reinforces the organization's commitment to its values, making the policy aspect actionable and impactful. Other options either undermine ethics or are less effective.

Question 2

Which of the following forms of fraud involves embezzlement?

Accepted Answer

Misappropriation of assets

Answer

Embezzlement involves the fraudulent appropriation of funds or property that has been entrusted to one's care. This act is a direct form of stealing or misusing an organization's resources, which falls squarely under the definition of 'misappropriation of assets.' The other options describe different categories of fraud.

Question 3

Which of these scenarios is an example of risk management avoidance action?

Accepted Answer

Exiting a marketplace

Answer

Risk avoidance involves taking action to eliminate the risk entirely by ceasing the activity that gives rise to it. Exiting a marketplace means stopping operations or sales in that market, thereby completely avoiding all associated risks. Getting insurance is risk transfer, outsourcing is risk sharing/transfer, and recalling a product is a mitigation strategy.

Question 4

Which of the following assertions, according to IIA advice, illustrates the similarities between assurance and consulting services?

Accepted Answer

Internal auditors must organize assurance and consulting engagements with the strategy and objectives of the activity under evaluation in mind.

Answer

Both assurance and consulting services, according to IIA standards, are designed to add value and improve an organization's operations. To achieve this, both types of engagements must be strategically aligned with the organization's overarching goals and the specific objectives of the activity being reviewed. This alignment ensures the internal audit function supports the organization's success, highlighting a fundamental similarity in their purpose.

Question 5

What is the main use of a fishbone diagram?

Accepted Answer

To determine the potential causes of adverse circumstances.

Answer

A fishbone diagram, also known as an Ishikawa diagram or cause-and-effect diagram, is a visualization tool specifically designed to help identify, explore, and categorize the potential root causes of a problem or an adverse circumstance. It systematically breaks down a problem into its contributing factors, making it ideal for root cause analysis.

(CRMA) Certification in Risk Management Assurance Practice Test

(CRMA) Certification in Risk Management Assurance Practice Test

CRMA Basic