Free IIA-ACCA Practice Test Questions 2026

Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?

1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

A. 1 and 4

B. 2 and 3 only

C. 1, 2, and 3

D. 2, 3, and 4

Which of the following would be considered a violation of The IIA's mandatory guidance on independence?

A. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.

B. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE.

C. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.

D. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.

Which of the following is an activity that an internal auditor must not perform?

A. Establish and provide continuing assurance on an anti-money laundering program for new hires.

B. Survey employees for their understanding of anti-money laundering practices.

C. Provide assurance for the effectiveness of anti-money laundering training.

D. Assess the risk of being fined for ineffective anti-money laundering practices.

Which of the following is most likely to function as a directive control?

A. Security dogs.

B. Alert employees.

C. Insurance claims.

D. Cycle counts.

An internal auditor needs to recommend a policy element to be included in an organization's code of ethics. Which of the following recommendations would be most effective?

A. Ethics should vary with local customs in the organization's foreign operations.

B. Whistleblowing should be discouraged because it can cause distrust among employees.

C. Ethical behavior should be incorporated into performance evaluations.

D. Senior management should be granted specific exemptions to the code of ethics.

According to IIA guidance, which of the following statements is true regarding periodic internal assessments of the internal audit activity?

A. Internal assessments are conducted to benchmark the internal audit activity's performance against industry best practices.

B. Internal assessments must be performed at least once every five years by a qualified assessor.

C. An internal auditor may perform a peer review of a colleague's workpapers, as long as the auditor wasn't involved in the audit under review.

D. Follow-up to ensure appropriate improvements are implemented is a recommended, but not mandatory, element of internal assessments.

According to The IIA's Code of Ethics, which of the following is true?

A. Confidentiality requires that auditors disclose all material facts known to them.

B. Integrity requires that auditors perform internal audit services in accordance with the Standards.

C. Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.

D. Confidentiality requires that auditors be prudent in the use and protection of client information.

What is the primary benefit to the internal audit activity for undertaking an internal quality assessment?

A. To help the internal audit activity complete its annual assurance plan.

B. To identify inefficiencies within the internal audit team.

C. To help improve the overall quality of the internal audit activity's work.

D. To identify key risks and areas of concern within the organization.

An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

A. Working conditions.

B. Employees' families.

C. Marketplace competition.

D. Shareholders and investors.

An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

A. Preventive controls.

B. Detective controls.

C. Soft controls.

D. Directive controls.

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?

A. Replace the auditor with another audit staff member.

B. Continue with the present auditor, as more than one year has passed.

C. Withdraw the audit team and outsource the financial audit of the division.

D. Work with the division's management to resolve the situation.

Which of the following factors have the greatest influence on the independence of the internal audit activity?

A. Quality assessments and cultural biases of the internal audit activity.

B. Rotational assignments and familiarity of the internal audit activity.

C. Employee incentives and self review of the internal audit activity.

D. Organizational positioning and scope control of the internal audit activity.