Free IIA-ACCA Practice Test Questions 2026

Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?

1. Reappraising risks levels.
2. Providing accurate information to management.
3. Marketing the internal audit activity.
4. Planning safeguards for assets in high-risk areas.

A. 1 and 2.

B. 1 and 3.

C. 2 and 3.

D. 3 and 4.

According to COSO, which of the following is not considered one of the components of an organization's internal environment?

A. Authority and responsibility to resolve issues.

B. Framework to plan, execute and monitor activities.

C. Integrated responses to multiple risks.

D. Knowledge and skills needed to perform activities.

Which of the following statements accurately describes an internal auditor's responsibility with regard to due professional care?

A. An internal auditor should express an opinion only when consensus with top management has been achieved.

B. An internal auditor's opinion should be based on experience and free of all bias.

C. An internal auditor's opinion should be based on factual evidence.

D. An internal auditor's opinion should be limited to the effectiveness of internal controls.

An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected. Which of the following best describes this risk strategy?

A. Risk avoidance.

B. Risk-benefit analysis.

C. Risk sharing.

D. Risk acceptance.

An internal auditor who is carrying out an engagement to review controls related to corporate tax reporting must possess which of the following competencies?

1. Proficiency in analyzing key IT risks and controls.
2. The ability to recognize significant deviations from good business practices.
3. Knowledge of key indicators of fraud in tax reporting.
4. The ability to recognize the existence of problems related to tax accounting.

A. 1 and 4 only.

B. 3 and 4 only.

C. 2, 3, and 4 only.

D. 1,2, 3, and 4.

An internal auditor in a small broadcasting organization was assigned to review the revenue collection process. The auditor discovered that some checks from three customers were never recorded in the organization's financial records. Which of the following documents would be the least useful for the auditor to verify the finding?

A. Bank statements.

B. Customer confirmation letters.

C. Copies of sales invoices.

D. Copies of deposit slips.

Which of the following is the best way to detect fraud?

A. Conduct anti-fraud training.

B. Perform background investigations.

C. Implement process controls.

D. Activate a whistleblower hotline.

According to IIA guidance, which of the following is an area in which the internal auditor should be proficient?

A. Management principles.

B. Computerized information systems.

C. Internal audit standards, procedures, and techniques.

D. Fundamentals of accounting, economics, and finance.

According to COSO, which of the following describes a principle related to the control environment?

A. The organization identifies and assesses changes that could significantly impact the system of internal control.

B. The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.

C. The organization selects and develops control activities that contribute to the mitigation of risks.

D. The organization performs evaluations to ascertain whether internal control components are present and functioning.

Which of the following techniques would provide the most compelling evidence that a safety hazard exists within a manufacturing facility?

A. Observation of the facility during operations.

B. Questioning of facility management, including the facility safety officer.

C. Analysis of facility operating reports, focusing on instances when breakdowns occurred.

D. Review of records involving safety violations, filed by facility production employees.

An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

A. Higher inventory turnover.

B. Higher operating margin.

C. Lower obsolete stock disposal.

D. Lower sales volume.

According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

A. Rating each engagement record to assess its relevance and accessibility for the organization's board.

B. Controlling access to engagement records, including access by senior management.

C. Developing retention requirements for engagement records that are consistent with organizational guidelines.

D. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.