Free IIA-ACCA Practice Test Questions 2026

Which of the following would be the most important consideration by the internal audit activity when selecting employees to perform an internal quality assessment?

A. Their understanding of auditing standards.

B. Previous experience working with the internal audit activity.

C. Their reporting line within the organization.

D. The nature of their regular duties and responsibilities.

Which of the following are generally recognized as essential elements of a corporate social responsibility program?

A. Human rights and the environment.

B. Organizational governance and financial reporting.

C. Fair operating practices and government regulation.

D. Consumer issues and return on investment.

According to The IIA's Code of Ethics, which of the following actions violates the principle of confidentiality?

A. Accepting a consulting request in the IT department without possessing the requisite experience.

B. Providing personal tax preparation services for a fee for several employees during the lunch hour.

C. Providing a friend with the marketing strategic plan, which she will use to prepare her university thesis.

D. Agreeing to reword an observation to avoid the client complaining directly to the auditor's supervisor.

Which of the following is an example of a risk avoidance strategy?

A. Hedging against exchange rate variations.

B. Limiting access to an organization's data center.

C. Selling a nonstrategic business unit.

D. Outsourcing a high-risk activity.

Which of the following would be the most appropriate first step for the board to take when developing an effective system of governance?

A. Determine the organization's overall risk appetite.

B. Establish a governance committee.

C. Delegate authority to members of senior management

D. Identify key stakeholders and their expectations.

To fill a critical vacancy, an internal auditor is assigned temporarily to a nonaudit role in the purchasing department, where she worked previously before joining the internal audit activity. According to IIA guidance, which of the following statements is true regarding these circumstances?

A. The chief audit executive (CAE) should review all work performed by the auditor during her temporary assignment to ensure no impairments.

B. The CAE may conduct audits in the purchasing department during the auditor's temporary assignment.

C. The auditor should obtain the CAE's approval as to the nature and scope of the duties she is permitted to perform during her temporary assignment.

D. Any work performed by the auditor during her temporary assignment must conform to the internal audit charter.

A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?

A. Preparing the financial statements for the company's defined contribution plan.

B. Performing a pre-implementation review of the company's payroll application.

C. Providing the COBIT framework as a possible IT management tool.

D. Reviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

A. Logic test.

B. Check digits.

C. Data integrity tests.

D. Balancing control activities.

An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?

A. Management sells the product division to a competitor.

B. Management outsources the product division to a third party.

C. Management allows the product division to remain unchanged.

D. Management modifies the product division to minimize errors.

Reviewing prior audit reports and supporting workpapers before an engagement starts enables an internal auditor to do which of the following?

1. To understand better the activity and processes that will be audited.
2. To identify the audit procedures that will be used during the engagement.
3. To ensure that matters of greatest vulnerability will be addressed.
4. To use the information obtained as evidence in the current engagement.

A. 4 only

B. 1 and 3 only

C. 1 and 4 only

D. 2, 3, and 4 only

Which of the following control methods is effective in reducing the risk of purchasingscheme fraud?

1. Periodically reviewing the vendor list for unusual vendors and addresses.
2. Segregating duties for amount purchasing, receiving, shipping, and accounting.
3. Validating sequential integrity of purchase orders.
4. Verifying the validity of invoices with post office box addresses.

A. 1 and 2 only

B. 3 and 4 only

C. 1, 2, and 4 only

D. 1, 2, 3, and 4

A medical insurance provider uses an electronic claims-submission process and suspects that a number of physicians have submitted claims for treatments that were not performed. Which of the following control procedures would be most effective to detect this type of fraud?

A. Require the physician to submit a signed statement attesting that the treatments had been performed.

B. Send confirmations to the physicians, requesting them to verify the exact nature of the claims submitted to the insurance provider.

C. Develop an integrated test facility and submit false claims to verify that the system is detecting such claims on a consistent basis.

D. Use computer software to identify abnormal claims based on the insured's age and medical history.