Free IIA-ACCA Practice Test Questions 2026

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

A. To enable Triple Bottom Line reporting capability.

B. To facilitate the conduct of risk assessment.

C. To achieve and maintain sustainable development.

D. To fulfill regulatory and compliance requirements.

Which of the following is the most common method of fraud detection?

A. Analytical reviews of high-risk areas.

B. Detective controls built into the daily processes.

C. Unannounced audits or reviews of programs or departments.

D. Tips received from employees or citizens.

Which of the following is an example of a management control technique?

A. A budget.

B. A risk assessment.

C. The board of directors.

D. The control environment.

Which of the following is most likely to be considered a control weakness?

A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.

B. Purchase orders are typed by the purchasing department using prenumbered forms.

C. Buyers promptly update the official vendor listing as new supplier sources become known.

D. Department managers initiate purchase requests that must be approved by the plant superintendent.

An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?

A. The residual risk is lower than or equal to the risk appetite.

B. The residual risk is higher than or equal to the risk appetite.

C. The inherent risk is lower than or equal to the risk tolerance.

D. The inherent risk is higher than or equal to the risk tolerance.

Which of the following statements is true with regard to conducting an effective quality assurance and improvement program?

A. The IIA's Quality Assessment Manual for the Internal Audit Activity must be used as the basis for periodic assessments.

B. Members of the internal audit activity are not permitted to perform quality assessments, as they would not be independent.

C. Periodic internal assessments provide the most current and independent recommendations for improvement.

D. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

A. Management will be able to reduce inherent risk because they will have a better understanding of risk.

B. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.

C. Stakeholders will have more assurance that the risks are assessed consistently.

D. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

A. Postpone the audit until the CAE hires internal audit staff with the required knowledge.

B. Ask the audit committee to decide the course of action.

C. Select the most experienced auditors in the department to perform the engagement.

D. Hire consultants who possess the required knowledge to perform the engagement.

An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate). Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?

A. Variability tolerance.

B. Ratio estimation.

C. Stratification.

D. Acceptance sampling.

Which of the following describes a key characteristic related to effective organizational communication?

A. Comprehensive supervisory and verification procedures.

B. A well-designed system of internal controls.

C. A culture of integrity and transparency.

D. Unique operating environments with varying complexity.

During an audit engagement, the internal auditor discussed a risk mitigation recommendation with the manager of the area under review. The manager disagreed with the risk assessment and recommendation. The two failed to come up with an alternative solution, and the auditor decided to proceed with including the original recommendation in the engagement report. Which of the following is especially important in dealing with this type of situation?

A. Soft skills in communication, negotiation, and collaboration.

B. Technical skills in the area under review.

C. Professional qualifications and certification in internal auditing.

D. Confidentiality and independence.

A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?

A. Due professional care.

B. Individual independence.

C. Individual objectivity.

D. Organizational independence.