Free IIA-CRMA-ADV Practice Test Questions 2026

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?

A. Report the deviations immediately to the audit committee.

B. Gather additional information to determine the cause of the deviations.

C. Conclude that the budget was unreasonably set and accept the deviations.

D. Perform alternative forms of analytical procedures which provide no deviations.

Which of the following is not a standard technique that the chief audit executive (CAE) would use to provide evidence of supervisory review of working papers?

A. The CAE initials and dates every working paper after it has been reviewed.

B. The CAE completes an engagement working paper checklist.

C. The CAE prepares a memorandum discussing the results of the working paper review.

D. The CAE utilizes an external third party to make an objective recommendation after each working paper review.

According to the Standards, which of the following is not a consideration when exercising due professional care for an assurance engagement?

A. The relative complexity, materiality, or significance of matters to which assurance procedures are applied.

B. The extent of assurance services necessary to ensure that all risks are identified. .

C. The cost of providing the assurance services in relation to potential benefits.

D. The probability of significant errors, irregularities or instances of noncompliance.

Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred. According to the Standards, which of the following principles did the CAE violate?

A. Due professional care.

B. Individual objectivity.

C. Proficiency.

D. Organizational independence.

The last quality assessment of the internal audit activity identified three areas for improvement: the achievement of audit engagement objectives, quality of work, and staff development. According to IIA guidance, which of the following should be the chief audit executive's primary focus to achieve these recommended improvements?

A. Demonstrated compliance with procedures.

B. Due professional care.

C. Engagement supervision.

D. Employment of tools and techniques.

Which of the following statements describes a control failure that is not directly attributable to a customer billing application?
1. End users have raised a number of concerns regarding data integrity.
2. An untested program change is transferred from the test environment to production.
3. Purchase history does not reconcile with accounts receivable for some customers.
4. End user security is inadvertently granted to an unauthorized individual by management.

A. 1 and 3.

B. 1 and 4.

C. 2 and 3.

D. 2 and 4.

Which of the following is a second line of defense in effective risk management and control?

A. Purchasing department.

B. Compliance department.

C. Credit department.

D. Internal audit department.

Which of the following audit techniques is used to evaluate control design while also embodying auditing's analytical process?

A. A risk and control matrix.

B. A flowchart.

C. A walk-through.

D. A process narrative.

A chief audit executive (CAE) learns that the brother-in-law of a senior auditor who audits the procurement process was hired as the head of the procurement department six months prior. Which of the following is the most appropriate action for the CAE to take?

A. The CAE should not interfere because there is no evidence that a conflict of interest has occurred.

B. The CAE should remind the senior auditor of his obligation to be objective and impartial.

C. The CAE should change the senior auditor's assignment and take corrective action for the auditor's failure to disclose the conflict of interest.

D. The CAE should require the senior auditor to disclose the relationship in writing before continuing his responsibility for monitoring procurement.

Which of the following best ensures an internal audit activity has the ability to render impartial and unbiased assessments?

A. Organizational status and objectivity.

B. Supervision of the chief audit executive (CAE) by senior management.

C. Organizational knowledge and skills.

D. CAE certification.

Management of a publicly-held organization requires the internal audit activity to be involved with quarterly financial statements, which are made public and used internally. Which of the following explanations of management's decision is least plausible?

A. Management may be concerned about its reputation in the financial markets.

B. Management is following best-practice protocol, as stipulated by the Standards, which states that internal auditors must review quarterly financial statements.

C. Management may be concerned about potential penalties that could occur if quarterly financial statements are misstated.

D. Management may perceive that having quarterly financial information examined by the internal auditors enhances the information's value to internal decision making.

Which of the following would provide the best guidance to a chief audit executive who is setting internal audit staff requirements?

A. A review of audit staff education and training records.

B. Information about the audit staff size and composition of comparable organizations.

C. Results from discussions of audit needs with executive management and the audit committee.

D. The results of the audit staff's most recent performance reviews.