IIA Exam IIA-CRMA Topic 5 Question 81 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 81
Topic #: 5

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?

APreparing the financial statements for the company's defined contribution plan.

BPerforming a pre-implementation review of the company's payroll application.

CProviding the COBIT framework as a possible IT management tool.

DReviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

Show Suggested Answer

Suggested Answer: A

by Lon at Jul 01, 2024, 12:52 AM

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Aron

2 months ago

I don't know about you, but I'm getting hungry just thinking about these audit options. Maybe we should take a break and grab a burrito or something?

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Annmarie

1 months ago

C: Providing the COBIT framework as an IT management tool seems like a more neutral assignment.

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Ozell

2 months ago

B: I agree, preparing financial statements for the company's defined contribution plan could create a conflict of interest.

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Denny

2 months ago

A: I think option A would impair the director's independence.

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Edda

3 months ago

I'm going with option D. Reviewing compliance with accounting standards seems like a standard audit activity that wouldn't impair independence.

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Mari

1 months ago

C: Providing the COBIT framework as an IT management tool could also impair independence, as it may involve recommending a specific solution to the company.

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Rashad

2 months ago

B: I agree, option A seems like it could compromise independence. Option D seems like a more standard audit activity.

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Barb

2 months ago

A: I think option A would impair independence because preparing financial statements for a specific plan could create a conflict of interest.

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Yvonne

3 months ago

Haha, option C is definitely the most creative answer here! Providing a framework for IT management would be a consulting service, not an audit function.

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Breana

1 months ago

D: Reviewing the company's policy for compliance with accounting standards is important too.

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Shayne

2 months ago

C: Preparing financial statements for the company's plan seems like a better choice.

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Casandra

2 months ago

B: Yeah, the director should focus on audit functions, not consulting.

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Loreta

3 months ago

A: I agree, option C is definitely a consulting service.

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Jennifer

3 months ago

I disagree. I believe option D would impair independence as it involves reviewing the company's own policies.

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Laurel

3 months ago

Hmm, I'm not too sure about this. I think option B might be the right choice, as a pre-implementation review could be seen as a management function.

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Rochell

2 months ago

User 2: I agree, performing a pre-implementation review could impair independence.

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Novella

2 months ago

User 1: I think option B is the right choice.

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Abel

3 months ago

Wow, this is a tricky one! I'm pretty sure option A is the correct answer, as preparing the financial statements would compromise the director's independence.

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