Free IIA-ACCA Practice Test Questions 2026

Which of the followings statements describes a best practice regarding assurance engagement communication activities?

A. All assurance engagement observations should be communicated to the audit committee.

B. All assurance engagement observations should be included in the main section of the engagement communication.

C. During the "communicate" phase of an assurance engagement, it is best to define the methods and timing of engagement communications.

D. A detailed escalation process should be developed during the planning stage of an assurance engagement.

According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

A. The accounts payable supervisor, accounts payable manager, and controller.

B. The accounts payable manager, purchasing manager, and receiving manager.

C. The accounts payable supervisor, controller, and treasurer.

D. The accounts payable manager, chief financial officer, and audit committee.

Which of the following is a detective control for managing the risk of fraud?

A. Awareness of prior incidents of fraud.

B. Contractor non-disclosure agreements.

C. Verification of currency exchange rates.

D. Receipts for employee expenses.

When developing the scope of an audit engagement, which of the following would the internal auditor typically not need to consider?

A. The need and availability of automated support.

B. The potential impact of key risks.

C. The expected outcomes and deliverables.

D. The operational and geographic boundaries.

An internal auditor and engagement client are deadlocked over the auditor's differing opinion with management on the adequacy of access controls for a major system. Which of the following strategies would be the most helpful in resolving this dispute?

A. Conduct a joint brainstorming session with management.

B. Ask the chief audit executive to mediate.

C. Disclose the client's differing opinion in the final report.

D. Escalate the issue to senior management for a decision.

It is close to the fiscal year end for a government agency, and the chief audit executive (CAE) has the following items to submit to either the board or the chief executive officer (CEO) for approval. According to IIA guidance, which of the following items should be submitted only to the CEO?

A. The internal audit risk assessment and audit plan for the next fiscal year.

B. The internal audit budget and resource plan for the coming fiscal year.

C. A request for an increase of the CAE's salary for the next fiscal year.

D. The evaluation and compensation of the internal audit team.

An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?

A. Observe corrective measures.

B. Seek a management assurance declaration.

C. Follow up during the next scheduled audit.

D. Conduct appropriate testing to verify management responses.

Which of the following statements about internal audit's follow-up process is true?

A. The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.

B. The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.

C. Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.

D. The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

Which of the following is least likely to help ensure that risk is considered in a work program?

A. Risks are discussed with audit client.

B. All available information from the risk-based plan is used.

C. Client efforts to affect risk management are considered.

D. Prior risk assessments are considered.

The chief audit executive (CAE) of a small internal audit activity (IAA) plans to test conformance with the Standards through a quality assurance review. According to the Standards, which of the following are acceptable practice for this review?

1. Use an external service provider.
2. Conduct a self-assessment with independent validation.
3. Arrange for a review by qualified employees outside of the IAA.
4. Arrange for reciprocal peer review with another CAE.

A. 1 and 2

B. 2 and 4

C. 1, 2, and 3

D. 2, 3, and 4

Which of the following is not an outcome of control self-assessment?

A. Informal, soft controls are omitted, and greater focus is placed on hard controls.

B. The entire objectives-risks-controls infrastructure of an organization is subject to greater monitoring and continuous improvement.

C. Internal auditors become involved in and knowledgeable about the self-assessment process.

D. Nonaudit employees become experienced in assessing controls and associating control processes with managing risks.

New environmental regulations require the board to certify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

A. The audit committee of the board.

B. The environmental, health, and safety manager.

C. The organization's external environmental lawyers.

D. The organization's insurance department.