Free IIA-ACCA Practice Test Questions 2026

Faced with a complex, highly technical construction audit engagement, the chief audit executive (CAE) considered complementing the current internal audit resources by engaging the services of a civil engineer.
Which of the following should the CAE consider in determining whether the engineer possesses the necessary skills to perform the engagement?

1. Professional certification, license, or other recognition of the engineer's competence in the relevant discipline.
2. Experience of the engineer in the type of work being considered.
3. Compensation or other incentives that the engineer may receive.
4. The extent of other ongoing services that the engineer may be performing for the organization.

A. 1 and 4 only

B. 2 and 3 only

C. 3 and 4 only

D. 1, 2, and 4 only

Which of the following is most likely to enhance an internal auditor's objectivity?

A. An auditor is appropriately able to communicate results.

B. An auditor performs his work free from interference.

C. An auditor is unrestricted in determination of scope.

D. An auditor avoids conflicts of interest.

According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?

A. The training courses necessary to enhance the internal auditor's knowledge, skills, and other competencies.

B. The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.

C. The use of innovative technology and data analysis techniques.

D. The extent of work needed to achieve the engagement’s objectives.

When auditing the award of a major contract, which of the following should an internal auditor suspect as a red flag for a bidding fraud scheme?

1. Subsequent change orders increase requirements for low-bid items.
2. Material contract requirements are different on the actual contract than on the request for bids.
3. A high percentage of employees are charged to indirect accounts.
4. Losing bidders are hired as subcontractors.

A. 1 only

B. 2 only

C. 1 and 3.

D. 2 and 4.

Given the highly technical and legal nature of privacy issues, which of the following statements best describes the internal audit activity's responsibility with regard to assessing an organization's privacy framework?

A. If an organization does not have a mature privacy framework, the internal audit activity should assist in developing and implementing an appropriate privacy framework.

B. Because the audit committee is ultimately responsible for ensuring that appropriate control processes are in place to mitigate risks associated with personal information, the internal audit activity is C. required to conduct privacy assessments.

C. The internal audit activity may delegate to nonaudit IT specialists the responsibility of determining whether personal information has been secured adequately and data protection controls are sufficient.

D. The internal audit activity should have appropriate knowledge and competence to conduct an asses .......framework.

According to IIA guidance, which of the following are considerations of due professional care when an internal auditor conducts a formal consulting engagement?

1. The complexity of the work required.
2. The needs and expectations of the client.
3. The potential value of the engagement compared to the effort.
4. Information regarding assumptions and procedures to be employed.

A. 1 and 4 only

B. 2 and 3 only

C. 1, 2, and 3 only

D. 1, 2, 3, and 4

Which of the following are components of the ISO 31000 risk management process?

1. Setting the context.
2. Risk treatment.
3. Risk avoidance.
4. Communication.

A. 1 and 2 only.

B. 2 and 3.

C. 3 and 4.

D. 1,2, and 4.

What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

A. During facilitated workshops, people more openly say things to internal auditors than during private interviews.

B. Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.

C. Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

D. The testimonial evidence obtained during facilitated workshops is generally considered more reliable.

An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

A. Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

B. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

C. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

D. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

A. The CAE would need to procure external services to deliver the internal audit assurance program.

B. There is no expertise within the internal audit team for detecting and investigating fraud.

C. There is no expertise within the internal audit team for auditing an IT engagement.

D. There is no available expertise on the internal audit team to perform a consulting engagement.

Which of the following combinations of conditions is most likely a red flag for fraud?

A. The practice of surprise audits and the implementation of an employee support program.

B. Hiring an employee with a prior fraud conviction and yearly management review.

C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

D. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

A. Requesting a private meeting with senior management, without the presence of the chief audit executive.

B. Intervening during an audit involving ethical wrongdoing.

C. Discussing periodic reports of ethical breaches.

D. Authorizing an investigation of an unsafe product.