Free IIA-ACCA Practice Test Questions 2026

Which of the following is an example of a risk management avoidance response?

A. Exiting a marketplace.

B. Recalling a product.

C. Obtaining product insurance.

D. Outsourcing production.

Which of the following best describes the misdirection of payments on accounts receivable to an employee's bank account?

A. Fraud open on the books.

B. Fraud hidden on the books.

C. Fraud off the books.

D. Fraud on the balance sheet.

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

A. The internal audit activity's responsibility for imposing risk management processes.

B. The internal audit activity's responsibility for the organization's governance framework.

C. The nature of consulting services provided by the internal audit activity.

D. The budgeting process for the internal audit activity.

A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?

A. Control activities.

B. Information and communication.

C. Commitment.

D. Control environment.

According to the HA Code of Ethics, which of the following statements best describes the principle of competency?

A. Internal auditors shall perform their work with honesty, diligence, and responsibility.

B. Internal auditors shall perform their work in accordance with the Standards.

C. Internal auditors shall perform their work in accordance with the law and make disclosures expected by the law.

D. Internal auditors shall be prudent in the use of information acquired while performing their work.

Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

A. Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.

B. The controller at a nationwide manufacturing company recently opted to no longer require two-week mandatory vacations for accounting staff.

C. Security cameras that monitor cash handling at the register are not functioning.

D. The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.

The manager for an organization's accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

A. An operations audit of the accounts payable department.

B. A consulting engagement related to a new accounts payable optimization initiative.

C. A review of the employees' sports club finances, which are overseen by the chief audit executive.

D. An assurance review for a sales program on which she previously provided consultation.

Which of the following best demonstrates the authority of the internal audit activity?

A. Suggesting alternatives to decision makers.

B. Improving the integrity of information.

C. Determining the scope of internal audit services.

D. Achieving engagement objectives.

During an audit, the client questions the internal audit activity's authority to perform procedures over fraud allegations. According to HA guidance, which of the following would provide the most relevant support to respond to the client's concerns?

A. Definition of Internal Auditing.

B. MA Standards.

C. Internal audit charter.

D. The IIA's Code of Ethics.

As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

A. Organizational independence.

B. Professional objectivity.

C. Due professional care.

D. Individual proficiency.

Which of the following is true regarding the use of a formal risk management framework?

1. It facilitates a methodical approach to risk mitigation.
2. It defines and standardizes the terminology used in risk communication.
3. It establishes the risk tolerance levels to be accommodated in the strategy.
4. It facilitates the alignment of risk mitigation strategies with management priorities.

A. 1.2, and 3.

B. 1,2, and 4.

C. 1.3, and 4.

D. 2. 3, and 4.

Which of the following statements is true about The IIA Global Internal Audit Competency Framework?

A. The core competencies outlined in the framework are not expected of a person undertaking an entry-level position as an internal auditor.

B. The framework is designed to be used primarily by chief audit executives that are developing indicators to measure the performance of the internal audit activity for which they are responsible.

C. The framework lists the core competencies internal auditors should possess before attempting to attain The IIA's Certified Internal Auditor certification.

D. The framework describes competencies needed for individual internal auditors, but not those necessary at the chief audit executive level.