Free IIA-CRMA-ADV Practice Test Questions 2026

While reviewing the workpapers of a new auditor, the auditor in charge discovered that additional audit procedures might be necessary. According to IIA guidance, which of the following would be most relevant for the auditor in charge to consider when making this decision?

A. Resource management.

B. Coordination.

C. Due professional care.

D. Engagement supervision.

Which of the following techniques would best assist an internal auditor in evaluating the efficiency of a wholesale grocery distributor`s process to fill and package orders for shipping?

A. A Bedford analysis of orders filled to average delivery times.

B. Decision trees rating actual performance against requirements.

C. Queuing theory to assess potential bottlenecks in the process.

D. A program evaluation and review technique chart.

Which of the following is a preventive control?

A. Creating an audit trail.

B. Placing controls on physical access to inventory.

C. Reconciling purchase orders with approvals.

D. Reviewing expense accounts for irregularities.

Which of the following is a valid statement about the use of visual observations during an audit engagement?
1. Visual observations can be used to detect ineffective controls, idle resources, and safety hazards.
2. Visual observations can be used during both preliminary survey and fieldwork stages of the audit engagement.
3. Visual observations can provide unsubstantiated facts to management if the internal auditor believes the information is useful.
4. Visual observations can assist an auditor in determining if a material observation should be communicated through informal means to the organization’s senior management.

A. 1 and 2 only

B. 1 and 4 only

C. 2 and 3 only

D. 3 and 4 only

A staff auditor, nearly finished with an audit engagement, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing engagement, and there is pressure to complete the current engagement. The auditor notes the problem and forwards the information to the chief audit executive, but performs no further follow-up. Which of the following statements is true about the auditor's actions?

A. They are in violation of the IIA Code of Ethics because the auditor withheld meaningful information.

B. They are in violation of the Standards because the auditor did not properly follow up on a red flag that might indicate the existence of fraud.

C. They are in violation of neither the IIA Code of Ethics nor the Standards.

D. They are not in violation of the Standards but are in violation of the IIA Code of Ethics.

If an engagement client disputes that a specific action or process is within the scope of the internal audit activity, what would be the most appropriate way for the internal audit activity (IAA) to respond?

A. Terminate the audit engagement in full because an operational audit will not be productive without the client's cooperation.

B. Terminate only the specific action or process with which the client disagrees and work to determine a substitute function that will not impede further IAA or the client-audit relationship.

C. Refer the client to the IAA's charter and the approved yearly audit plan, which includes the areas designated for audit in the current time period.

D. Seek the approval of senior management or the board in mediation, allowing an overseer to clarify the scope of the audit engagement for the client.

This chief audit executive (CAE) engaged an internal auditor to consult on an organization's complex information technology system. Shortly after beginning the engagement, the auditor unexpectedly resigned. Unfortunately, this auditor was the only available auditor with the necessary expertise. The CAE will not be able to hire someone with similar expertise in time to meet a regulatory deadline. Which of the following would be the best course of action for the CAE to take?

A. Continue with the engagement in order to meet the regulatory deadline, but highlight areas in the final report that might need to be revised in the future.

B. Ask that a senior member of the organization's IT department with the required systems expertise join the audit team to assist in completing the engagement.

C. Delay the engagement and inform the board of the situation, asking them to provide acceptable alternatives for completing the engagement.

D. Remove the planned engagement from the audit plan and explain to senior management the problems with moving forward without an auditor with the necessary expertise.

According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?

A. It increases the likelihood of obtaining the audit client's agreement with the results.

B. It ensures that an appropriate chain of evidence is maintained through the workpapers.

C. It helps ensure that appropriate professional judgments and conclusions are made.

D. It is required to demonstrate that effective engagement supervision has occurred.

An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of the following controls would best mitigate the risk of employees receiving kickbacks from suppliers?

A. The periodic rotation of procurement officers' assignments to supplier accounts.

B. A pre-award financial capacity analysis of suppliers.

C. An automated computer report, organized by supplier, of any invoices for the same amount.

D. Periodic inventories of kiln-dried wood at the organization's warehouse.

Which of the following does not need to be defined in the internal audit charter?

A. The audit engagements to be performed during the upcoming year.

B. The internal audit activity's position within the organization.

C. The scope of internal audit activities.

D. Management and the board of directors' agreement regarding the roles and responsibilities of the internal audit activity.

Why is a code of ethics for the internal audit profession necessary?

A. It ensures that all members of the profession possess the same level of competence.

B. It provides auditors with protection from lawsuits.

C. It guides internal auditors in their service to others.

D. It requires auditors to exhibit loyalty to their organizations.

In which of the following scenarios would a customer service hotline receive a high volume of complaints regarding payments not being applied to customers’ accounts?

A. Invoices are not being mailed to customers.

B. An employee is tampering with customer checks.

C. Employees are submitting fraudulent expense reports.

D. The customer service department is not forwarding complaints to the accounts receivable department.