Free IIA-CRMA-ADV Practice Test Questions 2026

During an internal audit, the internal auditor compares the employee turnover rate in the area being audited with the employee turnover rate in the organization as a whole. This is an example of which of the following analytical auditing procedures?

A. Reasonableness test.

B. Regression analysis.

C. Benchmarking.

D. Trend analysis.

Which of the following activities best reflects the scope and status of the internal audit activity as defined in the internal audit policy statement?

A. The internal auditor reviews the physical access to merchandise during an inventory count.

B. The audit manager conducts an internal quality assessment of the internal audit activity’s adherence to the Standards.

C. The audit manager refrains from assigning an auditor who was a former payroll clerk to conduct a payroll audit.

D. The board approves the annual performance evaluation of the chief audit executive.

A manufacturing organization discovers that the waste water released has failed to meet permitted limits.
Which control function will be least effective in correcting the issue?

A. Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.

B. Posting signs that tell employees which substances may be disposed of via sinks and floor drains within the facility.

C. Diluting pollutants by flushing sinks and floor drains daily with large volumes of clean water.

D. Establishing a preventive maintenance program for the pretreatment system.

An organization has implemented a new automated payroll system that contains a table of pay rates that are matched to employee job classifications. Which control should an internal auditor suggest in order to ensure that the table is updated correctly, and is used only for valid pay changes?

A. Restrict data-table access from management and line supervisors who have the authority to determine pay rates.

B. Require a supervisor in the department, who has the ability to change the table, to compare the changes to a signed management authorization.

C. Ensure that adequate edit and reasonableness checks are built into the automated system.

D. Require a manager, who is independent of the system and who cannot change the table, to authorize and sign-off on any employee pay changes.

Why are preventative controls generally preferred to detective controls?

A. Because preventive controls promote doing the right thing in the first place, and lessen the need for corrective action.

B. Because preventive controls are more sensitive and identify more exceptions than detective controls.

C. Because preventive controls include output procedures, which cover the full range of possible reviews, reconciliations and analysis.

D. Because preventive controls identify exceptions after-the-fact, allowing them to be used after the entire review is complete and therefore finding exceptions that detective controls may have missed.

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 tothe 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?

A. Confidentiality.

B. Objectivity.

C. Integrity.

D. Competency.

The audit committee is concerned that the small size of the internal audit activity (IAA) makes it impractical to achieve full conformance with the Standards. To address this concern, which of the following actions is most appropriate for the CAE to take?

A. The CAE should agree with the audit committee and implement only those standards appropriate to the size of the IAA.

B. The CAE should request the audit committee to review the Standards to identify specifically which are creating the greatest concern.

C. The CAE should seek sufficient funding to increase audit resources to meet the minimum requirements of the Standards.

D. The CAE should explain that conformance with the Standards is essential and not dependent upon the size of the IAA.

Which of the following risk management activities is most appropriate for an internal auditor to undertake?

A. Impose risk management processes.

B. Coordinate risk management activities.

C. Implement risk responses on management's behalf.

D. Review the management of key risks.

Allegations have been made that an organization's share price has been manipulated.
Which of the following would provide an internal auditor with the most objective evidence in this case?

A. Major shareholders of the organization.

B. Large customers of the organization.

C. Former members of management.

D. Former financial consultants.

According to IIA guidance, which of the following individuals would best be considered independent for the purpose of participating in an external assessment of the quality assurance and improvement program for an internal audit activity (IAA)?

A. A former employee knowledgeable of the IAA who resigned three years earlier from the organization.

B. A competent employee of an independent external organization that provides cosourcing services to the IAA.

C. An employee in an affiliated organization who has never worked directly with the IAA.

D. An employee in the parent organization who has not had any previous contact with the IAA.

During an internal audit, an organization's processing department is found to have incidences of both duplicate invoices and notices from customers that purchased goods were not received. The department under review insists that some of these reports are false and that others were isolated oversights due to understaffing. Which of the following tests would best help the internal auditor detect fraudulent activity?

A. Check inventory levels.

B. Search for gaps in check numbers.

C. Compare vendor summaries.

D. Review raw material purchase quantities.

Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

A. Suppliers' reports of over shipments.

B. Warehouse receiving logs.

C. Purchase requisitions and purchase orders.

D. Observation and inspection of inventory.