Free IIA-ACCA Practice Test Questions 2026

According to IIA guidance, which of the following is least likely to be a key financial control in an organization's accounts payable process?

A. Require the approval of additions and changes to the vendor master listing, where the inherent risk of false vendors is high.

B. Monitor amounts paid each period and compare them to the budget to identify potential issues.

C. Compare employee addresses to vendor addresses to identify potential employee fraud.

D. Monitor customer quality complaints compared to the prior period to identify vendor issues.

When setting the scope for the identification and assessment of key risks and controls in a process, which of the following would be the least appropriate approach?

A. Develop the scope of the audit based on a bottom-up perspective to ensure that all business objectives are considered.

B. Develop the scope of the audit to include controls that are necessary to manage risk associated with a critical business objective.

C. Specify that the auditors need to assess only key controls, but may include an assessment of non-key controls if there is value to the business in providing such assurance.

D. Ensure the audit includes an assessment of manual and automated controls to determine whether business risks are effectively managed.

When forming an opinion on the adequacy of management's systems of internal control, which of the following findings would provide the most reliable assurance to the chief audit executive?

• During an audit of the hiring process in a law firm, it was discovered that potential employees' credentials were not always confirmed sufficiently. This process remained unchanged at the following audit.
• During an audit of the accounts payable department, auditors calculated that two percent of accounts were paid past due. This condition persisted at a follow up audit.
• During an audit of the vehicle fleet of a rental agency, it was determined that at any given time, eight percent of the vehicles were not operational. During the next audit, this figure had increased.
• During an audit of the cash handling process in a casino, internal audit discovered control deficiencies in the transfer process between the slot machines and the cash counting area. It was corrected immediately.

A. 1 and 3 only

B. 1 and 4 only

C. 2 and 3 only

D. 2 and 4 only

According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

A. The CAE can release prior internal audit reports with the approval of the board and senior management.

B. The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.

C. The CAE can only release prior information outside the organization when mandated by legal or statutory requirements.

D. The CAE can release prior information provided it is as originally published and distributed within the organization.

Which of the following factors would the auditor in charge be least likely to consider when assigning tasks to audit team members for an engagement?

A. The amount of experience the auditors have conducting audits in the specific area of the organization.

B. The availability of the auditors in relation to the availability of key client staff.

C. Whether the budgeted hours are sufficient to complete the audit within the current scope.

D. Whether outside resources will be needed, and their availability.

Which of the following recommendations made by the internal audit activity (IAA) is most likely to help prevent fraud?

A. A review of password policy compliance found that employees frequently use the same password more than once during a year. The IAA recommends that the access control software reject any password used more than once during a 12-month period.

B. A review of internal service-level agreement compliance in financial services found that requests for information frequently are fulfilled up to two weeks late. The IAA recommends that the financial services unit be eliminated for its ineffectiveness.

C. A vacation policy compliance review found that employees frequently leave on vacation before their leave applications are signed by their manager. The IAA recommends that the manager attend to the leave applications in a more timely fashion.

D. A review of customer service-level agreements found that orders to several customers are frequently delivered late. The IAA recommends that the organization extend the expected delivery time advertised on its website.

According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

A. The number, experience, and availability of audit staff as well as the nature, complexity, and time constraints of the engagement.

B. The appropriateness and sufficiency of resources and the ability to coordinate with external auditors.

C. The number, proficiency, experience, and availability of audit staff as well as the ability to coordinate with external auditors.

D. The appropriateness and sufficiency of resources as well as the nature, complexity, and time constraints of the engagement.

An employee in the sales department completes a purchase requisition and forwards it to the purchaser. The purchaser places competitive bids and orders the requested items using approved purchase orders. When the employee receives the ordered items, she forwards the packing slips to the accounts payable department. The invoice for the ordered items is sent directly to the sales department, and an administrative assistant in the sales department forwards the invoices to the accounts payable department for payment. Which of the following audit steps best addresses the risk of fraud in the cash receipts process?

A. Verify that approvals of purchasing documents comply with the authority matrix.

B. Observe whether the purchase orders are sequentially numbered.

C. Examine whether the sales department supervisor approves invoices for payment.

D. Determine whether the accounts payable department reconciles all purchasing documents prior to payment.

Which of the following would not be a typical activity for the chief audit executive to perform following an audit engagement?

A. Report follow-up activities to senior management.

B. Implement follow-up procedures to evaluate residual risk.

C. Determine the costs of implementing the recommendations.

D. Evaluate the extent of improvements.

Which of the following is not a direct benefit of control self-assessment (CSA)?

A. CSA allows management to have input into the audit plan.

B. CSA allows process owners to identify, evaluate, and recommend improving control deficiencies.

C. CSA can improve the control environment.

D. CSA increases control consciousness.

Which of the following is the most important concept to be included in a consulting engagement agreement?

A. Define the duties and responsibilities needed from management to perform the engagement.

B. Disclose the fact that auditors who perform the work may not be subject matter experts in the topic of the review.

C. Clarify that matters discovered during the engagement may also be reported to senior management and the audit committee.

D. Disclose the fact that follow-up reviews may be conducted to ensure that recommendations are implemented adequately.

Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?

A. To help develop process maps.

B. To determine segregation of duties.

C. To identify residual risks.

D. To test the adequacy of controls.