Free Certification in Risk Management Assurance (CRMA) exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Certification in Risk Management Assurance (CRMA) exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Under the 2017 Standards, what access helps the chief audit executive maintain the internal audit activity's independence?

   1. A. Direct and unrestricted access to senior management and the board
   2. B. Access to senior management only through the finance function
   3. C. Access to the board only after management approves audit findings
   4. D. Access to operational managers without direct board interaction

   Answer: A

   Explanation: The Standards state that "the chief audit executive has direct and unrestricted access to senior management and the board." This access supports the independence needed to carry out audit responsibilities without bias.

   Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 1100, Interpretation, PDF p. 3

2. 2Which governance process should internal audit assess when evaluating the organization's oversight of risk?

   1. A. Oversight of risk management and control
   2. B. Measurement of organizational performance and accountability
   3. C. Communication of risk information across the organization
   4. D. Coordination among the board and assurance providers

   Answer: A

   Explanation: The Standards specify "Overseeing risk management and control." The 2017 Standards expressly include oversight of risk management and control among governance processes for assessment.

   Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 2110, PDF p. 13

3. 3An auditor compares the relationship between warranty claims and units sold across products. Which analytical technique is being applied?

   1. A. Ratio analysis
   2. B. Trend analysis
   3. C. Benchmarking
   4. D. Independent confirmation

   Answer: A

   Explanation: The IIA implementation guidance states that "Ratio, trend, and regression analysis." Comparing claims per unit sold uses a ratio; trend analysis instead examines movement over time.

   Reference: Implementation Guides | International Professional Practices Framework (IPPF) — Implementation Guide 2320, Analyses, PDF p. 163

4. 4At what minimum frequency should the board receive confirmation of internal audit's organizational independence?

   1. A. At least annually
   2. B. At least quarterly
   3. C. Only when an impairment is discovered
   4. D. Only when the audit charter is revised

   Answer: A

   Explanation: Standard 1110 says the chief audit executive "must confirm to the board, at least annually, the organizational independence of the internal audit activity." The confirmation is a recurring requirement, separate from reporting a specific impairment.

   Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 1110, PDF p. 4

5. 5In assessing governance, which organizational behavior should internal audit evaluate and recommend improving?

   1. A. Promotion of appropriate ethics and values
   2. B. Oversight of risk management and control
   3. C. Coordination of assurance providers
   4. D. Performance management and accountability

   Answer: A

   Explanation: The Standards specify "Promoting appropriate ethics and values within the organization." The governance assessment includes whether organizational processes promote ethics and values.

   Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 2110, PDF p. 13

6. 6An auditor examines monthly error rates for a sustained rise. Which analytical technique is most directly used?

   1. A. Trend analysis
   2. B. Ratio estimation
   3. C. Independent confirmation
   4. D. Vouching

   Answer: A

   Explanation: The IIA implementation guidance states that "Ratio, trend, and regression analysis." A sequence of monthly rates is analyzed for a trend.

   Reference: Implementation Guides | International Professional Practices Framework (IPPF) — Implementation Guide 2320, Analyses, PDF p. 163

7. 7The chief audit executive is assigned responsibility for the risk management function in addition to internal audit. What is required to address the potential independence or objectivity impairment?

   1. A. Put safeguards in place to limit the impairment
   2. B. Treat the additional role as assurance over that function
   3. C. Remove the board's oversight of the additional role
   4. D. Assume the additional role cannot affect objectivity

   Answer: A

   Explanation: Standard 1112 provides: "Where the chief audit executive has or is expected to have roles and/or responsibilities that fall outside of internal auditing, safeguards must be in place to limit impairments to independence or objectivity." Risk management responsibility is such an additional role.

   Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 1112, PDF p. 4

8. 8Which governance outcome links responsibility for results to oversight?

   1. A. Effective organizational performance management and accountability
   2. B. Effective communication of risk information to appropriate areas
   3. C. Effective coordination of external and internal assurance work
   4. D. Effective promotion of ethics and organizational values

   Answer: A

   Explanation: The Standards specify "Ensuring effective organizational performance management and accountability." Governance includes performance management and accountability, so an auditor should assess these processes.

   Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 2110, PDF p. 13

9. 9An auditor compares a division's process cost per transaction with similar divisions. Which analytical approach does this illustrate?

   1. A. Benchmarking
   2. B. Vouching
   3. C. Tracing
   4. D. Reperformance

   Answer: A

   Explanation: The IIA implementation guidance states that "Benchmarking information against similar industries or organizational units." Benchmarking compares the division with similar units.

   Reference: Implementation Guides | International Professional Practices Framework (IPPF) — Implementation Guide 2320, Analyses, PDF p. 163

10. 10A restriction on access to records impairs an internal audit engagement. How should the impairment be handled under the 2017 Standards?

    1. A. Disclose its details to appropriate parties based on its nature
    2. B. Disclose it only after the final report has been issued
    3. C. Treat it solely as an individual auditor's conflict of interest
    4. D. Ignore it if the remaining records support some conclusions

    Answer: A

    Explanation: Standard 1130 states that "the details of the impairment must be disclosed to appropriate parties. The nature of the disclosure will depend upon the impairment." Its interpretation identifies restrictions on access to records as possible impairments.

    Reference: International Standards for the Professional Practice of Internal Auditing (2017) — Standard 1130, PDF p. 5