Free IIA-ACCA Practice Test Questions 2026

According to IIA guidance, which of the following should be included in the internal audit charter?

A. The minimum resources and competencies needed for the internal audit activity.

B. Identification of the organizational units where engagements are to be performed.

C. Organizational relationships and reporting lines.

D. Assigned responsibilities for designing and implementing controls.

In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

A. Maintaining industry-specific knowledge appropriate to the organization.

B. Assessing how IT contributes to organization objectives, risks, and relevance to audit.

C. Maintaining technical aspects of accounting standards and reporting processes.

D. Understanding regulatory and legal framework and assessing its relevance.

Which of the following scenarios best illustrates the principle of due professional care?

A. An internal auditor evaluates the significant risks arising from a consulting engagement.

B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.

C. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.

D. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

Which of the following actions would be characterized as a preventive control to safeguard inventory from the risk of theft?

1. Locking doors and physically securing inventory items.
2. Independently observing the receipt of materials.
3. Conducting monthly inventory counts.
4. Requiring the use of employee ID badges at all times.

A. 1 and 3.

B. 1 and 4.

C. 2 and 3.

D. 2 and 4.

Click the Exhibit.

Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:

Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours

Which of the following graphs depicts the data accurately?

A. Graph A only

B. Graph B only

C. Both A and B.

D. Neither A nor B.

Non-statistical sampling does not require which of the following?

A. The sample to be representative of the population.

B. The sample to be selected haphazardly.

C. A smaller sample size than if selected using statistical sampling.

D. Projecting the results to the population.

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

A. Appoint the CAE as a member of the board.

B. Move the CAE's functional reporting to an executive who is not on the board.

C. Obtain full board approval of the internal audit activity's annual audit plan.

D. Move the CAE's functional reporting to the audit committee.

Which of the following options is the most cost-effective and efficient way for internal auditors to keep current with the latest developments in the internal audit profession?

A. Attending annual professional conferences and seminars.

B. Participating in on-the-job training in various departments of the organization.

C. Pursuing as many professional certifications as possible.

D. Maintaining membership in The HA and similar professional organizations and subscribing to relevant email updates or news feeds.

While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE's decision?

A. Objectivity.

B. Proficiency.

C. Independence.

D. Due professional care.

Which of the following is an example of collusion?

A. An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.

B. A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.

C. A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.

D. An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

An assurance mapping exercise helps an organization do which of the following?

1. Provide assurance to stakeholders that risks are managed and reported, and regulatory and legal obligations are met.
2. Fulfill best practices in the industry.
3. Identify and address any gaps in the risk management process.
4. Identify fraud.

A. 1 and 4.

B. 1 and 3.

C. 2 and 3.

D. 3 and 4.

According to the COSO enterprise risk management (ERM) framework, which of the following is not part of the new paradigm in ERM?

A. Assessing the risk factors.

B. Aligning risk appetite and strategy.

C. Enhancing risk response decisions.

D. Reducing operational surprises and losses.