Free IIA-ACCA Practice Test Questions 2026

According to IIA guidance, which of the following accurately describes the responsibilities of the chief audit executive with respect to the final audit report?

1. Coordinate post-engagement conferences to discuss the final audit report with management.
2. Include management's responses in the final audit report.
3. Review and approve the final audit report.
4. Determine who will receive the final audit report.

A. 1 and 2

B. 1 and 4

C. 2 and 3

D. 3 and 4

Which of the following is the primary reason the chief audit executive should consider the organization's strategic plans when developing the annual audit plan?

A. Strategic plans reflect the organization's business objectives and overall attitude toward risk.

B. Strategic plans are helpful to identify major areas of activity, which may direct the allocation of internal audit activity resources.

C. Strategic plans are likely to show areas of weak financial controls.

D. The strategic plan is a relatively stable document on which to base audit planning.

According to IIA guidance, which of the following procedures would be least effective in managing the risk of payroll fraud?

A. The employee’s name listed on organization’s payroll is compared to the personnel records.

B. Payroll time sheets are reviewed and approved by the timekeeper before processing.

C. Employee access to the payroll database is deactivated immediately upon termination.

D. Changes to payroll are validated by the personnel department before being processed.

According to IIA guidance, which of the following statements is false regarding a review of the controls in place to prevent fraud?

A. The review should focus on the efficiency of the controls in place to prevent fraud.

B. The scope of the review does not need to include all operating areas of the organization.

C. The cost of the control should be compared to the benefit of mitigating the related risk.

D. The review should assess whether the internal controls can be circumvented.

An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department?

1. The AIC should notify HR management when the draft audit plan is being developed, as a courtesy.
2. The AIC should notify HR management before the planning stage begins.
3. The AIC should schedule formal status meetings with HR management at the start of the engagement.
4. The AIC should finalize the scope of the engagement before communicating with HR management.

A. 1 and 3

B. 1 and 4

C. 2 and 3

D. 2 and 4

Which of the following components should be included in an audit finding?

1. The scope of the audit.
2. The standard(s) used by the auditor to make the evaluation.
3. The engagement's objectives.
4. The factual evidence that the internal auditor found in the course of the examination.

A. 1 and 2

B. 1 and 3 only

C. 2 and 4

D. 1, 3, and 4

According to IIA guidance, which of the following is true regarding audit supervision?

1. Supervision should be performed throughout the planning, examination, evaluation, communication, and follow-up stages of the audit engagement.
2. Supervision should extend to training, time reporting, and expense control, as well as administrative matters.
3. Supervision should include review of engagement workpapers, with documented evidence of the review.

A. 1 and 2 only

B. 1 and 3 only

C. 2 and 3 only

D. 1, 2, and 3

The internal audit activity (IAA) wants to measure its performance related to the quality of audit recommendations. Which of the following client survey questions would best help the IAA meet this objective?

A. Were audit findings relevant and useful to management?

B. Does the audit report format present issues clearly and concisely?

C. Does the IAA work with a high degree of professionalism and objectivity?

D. Were the findings reported in a timely manner?

Which of the following should be included in a privacy audit engagement?

1. Assess the appropriateness of the information gathered.
2. Review the methods used to collect information.
3. Consider whether the information collected is in compliance with applicable laws.
4. Determine how the information is stored.

A. 1 and 3 only

B. 2 and 4 only

C. 1, 3, and 4 only

D. 1, 2, 3, and 4

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

A. Communication of any internal ethics violations to external parties may occur with appropriate safeguards.

B. Cultural impacts are less critical where the organization practices uniform polices around the globe.

C. Cross-cultural differences should always be handled by the staff of the same cultural background.

D. Local law enforcement should be involved as they are more familiar with the applicable local laws.

The newly appointed chief audit executive (CAE) of a large multinational corporation, with seasoned internal audit departments located around the world, is reviewing responsibilities for engagement reports. According to IIA guidance, which of the following statements is true?

A. The CAE is required to review, approve, and sign every engagement report.

B. The CAE is required to review, approve, and sign all regulatory compliance engagement reports only

C. The CAE may delegate responsibility for reviewing, approving and signing engagement reports, but should review the reports after they are issued.

D. The internal audit charter must identify authorized signers of engagement reports.

During a fraud interview, it was discovered that unquestioned authority enabled a vice president to steal funds from the organization. Which of the following best describes this condition?

A. Scheme.

B. Opportunity.

C. Rationalization.

D. Pressure.