Free IIA-ACCA Practice Test Questions 2026

A government agency maintains a system of internal control, according to the COSO model, and has made a change to its employee performance reviews and rewards program. This change relates to which of the following components of COSO's internal control framework?

A. Control environment.

B. Control activities.

C. Information and communication.

D. Monitoring activities.

The chief audit executive (CAE) of a small internal audit activity (IAA) performs all high-risk engagements on the annual audit plan to make use of his knowledge and experience and to maximize the efficient use of audit resources. Which of the following statements is most relevant regarding this practice?

A. The CAE's work may be reviewed by any other experienced staff member within the IAA.

B. The CAE's work should be reviewed by an individual with the appropriate background and knowledge.

C. The CAE may self-review his work, provided he discloses this practice in the final report.

D. The CAE should avoid performing engagements to ensure he is able to review all audit work objectively.

Which of the following actions best demonstrates that an internal auditor is exercising due professional care?

A. The auditor performs thorough reviews and provides absolute assurance of regulatory compliance.

B. The auditor is alert to the possibility of fraud and activities where irregularities are most likely to occur.

C. The auditor recommends improvements for all of the organization's procedures and practices.

D. The auditor is cognizant of reducing travel expenses by combining a personal vacation with a business trip.

If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

A. Acts that may endanger the health or safety of individuals.

B. Acts that favor one party to the detriment of another.

C. Acts that damage or have an adverse effect on the environment.

D. Acts that conceal inappropriate activities in the organization.

An internal auditor is conducting an assessment of the purchasing department. She has worked the full amount of hours budgeted for the engagement; however, the audit objectives are not yet complete. According to IIA guidance, which of the following are appropriate options available to the chief audit executive?

1. Allow the auditor to decide whether to extend the audit engagement.
2. Determine whether the work already completed is sufficient to conclude the engagement.
3. Provide the auditor feedback on areas of improvement for future engagements.
4. Provide the auditor with instructions and directions to complete the audit.

A. 1, 2, and 3

B. 1, 2, and 4

C. 1, 3, and 4

D. 2, 3, and 4

Which of the following conditions are necessary for successful change management?

1. Decisions and necessary actions are taken promptly.
2. The traditions of the organization are respected.
3. Changes result in improvement or reform.
4. Internal and external communications are controlled.

A. 1 and 2

B. 1 and 3

C. 2 and 3

D. 2 and 4

A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?

A. Assert whether the described and reported control processes and systems exist.

B. Assess whether senior management adequately supports and promotes the internal control culture described in the report.

C. Evaluate the completeness of the report and management's responses to identified deficiencies.

D. Determine whether management's operating style and the philosophy described in the report reflect the effective functioning of internal controls.

Which of the following is a justifiable reason for omitting advance client notice when planning an audit engagement?

A. Advance notice may result in management making corrections to reduce the number of potential deficiencies.

B. Previous management action plans addressing prior internal audit recommendations remain incomplete.

C. The engagement includes audit assurance procedures such as sensitive or restricted asset verifications.

D. The audit engagement has already been communicated and approved through the annual audit plan.

According to IIA guidance, organizations have the most influence on which element of fraud?

A. Opportunity.

B. Rationalization.

C. Pressure.

D. Incentives.

Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?

A. Improper segregation of duties.

B. Incentives and bonus programs.

C. An employee's reported concerns.

D. Lack of an ethics policy.

A code of business conduct should include which of the following to increase its deterrent effect?

1. Appropriate descriptions of penalties for misconduct.
2. A notification that code of conduct violations may lead to criminal prosecution.
3. A description of violations that injure the interests of the employer.
4. A list of employees covered by the code of conduct.

A. 1 and 2

B. 1 and 3

C. 2 and 4

D. 3 and 4

According to IIA guidance,which of the following is true about the supervising internal auditor's review notes?

• They are discussed with management prior to finalizing the audit.
• They may be discarded after working papers are amended as appropriate.
• They are created by the auditor to support her fieldwork in case of questions.
• They are not required to support observations issued in the audit report.

A. 1 and 3 only

B. 1 and 4 only

C. 2 and 3 only

D. 2 and 4 only