Free IIA-ACCA Practice Test Questions 2026

According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?

1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement's objectives.

A. 1, 2, and 3

B. 1, 2, and 4

C. 1, 3, and 4

D. 2, 3, and 4

According to The IIA's Code of Ethics, which of the following statements is true?

A. When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.

B. When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

C. When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.

D. When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

A. Proceed with the audit engagement, but do not include the relative's information.

B. Have the chief audit executive and management determine whether the auditor should continue with the audit engagement.

C. Disclose in the engagement final communication that the relative is a customer.

D. Immediately withdraw from the audit engagement.

According to the International Professional Practices Framework, which of the following are allowable activities for an internal auditor?

1. Advocating the establishment of a risk management function.
2. Identifying and evaluating significant risk exposures during audit engagements.
3. Developing a risk response for the organization if there is no chief risk officer.
4. Benchmarking risk management activities with other organizations.
5. Documenting risk mitigation strategies and techniques.

A. 4 and 5 only.

B. 1.2, and 3 only.

C. 1.2. 4. and 5 only.

D. 2. 3. 4. and 5 only.

With regard To IT governance, which of the following is the most effective and appropriate role for the internal audit activity?

A. Independently evaluate the skills and experience of potential chief information officer candidates to assess the best fit based on the organization's risk appetite.

B. Evaluate the organization's governance standards and assess IT-related activities to identify gaps and develop policies, ensuring alignment with the organization's risk appetite.

C. Assist management in interpreting complex IT-related privacy and security risk exposures and evaluating potential mitigation strategies.

D. Assess whether governance activities are aligned with the organization's risk appetite and take into consideration emerging risks.

According to IIA guidance, which of the following external groups is most likely to represent a liability risk, based on activities associated with the organization's corporate social responsibility program?

A. Consumers.

B. Activists.

C. Suppliers.

D. Investors.

Which of the following are core responsibilities to be included in the internal audit charter?

1. Review reliability and integrity of financial and operating information and the means used to identify, measure, classify, and report such information.
2. Determine the adequacy and effectiveness of the organization’s systems of internal accounting and operating controls.
3. Participate in the planning and performance of audits of potential acquisitions with the organization's outside accountants and other members of the corporate staff.
4. Report to those members of management who should be informed of results of audit examinations, the audit opinions formed, and the recommendations made.

A. 1 and 2.

B. 1 and 4.

C. 2 and 3.

D. 2 and 4.

According to IIA guidance, which of the following roles would be appropriate for an internal auditor regarding fraud risk?

1. Identification.
2. Mitigation.
3. Remediation.
4. Reduction.

A. 1 only. |

B. 1 and 4 only.

C. 1, 3, and 4 only.

D. 1,2, 3, and 4.

Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?

A. Workshops.

B. Surveys.

C. Interviews.

D. Observation.

An internal auditor wants to sample data to test an audit theory in a cost-effective way. Which of the following sampling strategies should she use?

A. Statistical sampling only

B. Nonstatistical sampling only

C. A combination of both statistical and nonstatistical sampling.

D. Neither approach to testing the audit theory would be cost effective.

Which of the following statements describes impairment to the internal auditor's objectivity?

A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.

B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.

C. An internal auditor receives a promotional gift that is available to the organization's employees.

D. An internal auditor performs an assessment of the operations for which he was recently responsible.

Which of the following is considered a violation of The IIA's Code of Ethics?

A. An auditor conveys public information about an organization's financial condition.

B. An auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.

C. An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.

D. An auditor reports material deficiencies, despite the fact that management is already aware of the defects.