Free IIA-CHAL-QISA Practice Test Questions 2026

Which of the following is the most appropriate way to ensure that a newly formed internal audit activity remains free from undue influence by management?

A. Appoint the chief audit executive as a member of the board.

B. Adopt written policies and procedures for the internal audit activity, approved by the board.

C. Ensure the chief audit executive reports administratively to the audit committee.

D. Establish the internal audit activity's position within the organization in an audit charter

Which of the following statements is true regarding engagement planning?

A. The scope of the engagement should be planned according to the internal audit activity's budgetand then aligned to the risk universe.

B. The audit engagement objectives should be based on operational managements view of risk objectives

C. The planning phase of the engagement should be completed and approved before the fieldwork of the engagement begins.

D. The main purpose of the engagement work program is to determine the nature and timing of procedures required to gather audit evidence

The organization’s internal audit charter was last updated six years ago to update the charter, which of the following actions is most appropriate for the chief audit executive to take?

A. Wait for the next external assessment and address all of the missing information in the charter based on the recommendations from the external assessment team

B. Perform a review of HA guidance to become acquainted with the latest mandatory elements prior to updating the charter

C. Use an internal audit charter template from another organization that operates within the same industry.

D. Identify an individual within the internal audit activity who has in-depth knowledge of mandatory IIA guidance elements to address any gaps or areas of the current version of the charter that could be improved

The internal audit activity plans to assess the effectiveness of management’s selfassessment activities regarding the risk management process. Which of the following procedures would be most appropriate to accomplish this objective?

A. Review corporate policies and board minutes for examples of risk discussions.

B. Conduct interviews with line and senior management on current practices.

C. Research and review relevant industry information concerning key risks.

D. Observe and test control and monitoring procedures and related reporting.

A newly appointed chief audit executive (CAE) started analyzing the organization's policies in an attempt to customize them to address internal audit specifics. Which of the following organizationwide practices is most likely to be acceptable to the CAE?

A. Internal auditors' performance evaluation is primarily based on both client satisfaction surveys and cost savings identified from the audits

B. Standard training for each employee, including internal auditors, is 10 hours per year.

C. To enhance efficiency, Internal auditors should not be rotated regularly among engagements

D. Hiring practices include requiring potential auditors to disclose any significant stock ownership in the organization.

Which of the following is essential for ensuring that the internal audit activity’s findings and recommendations receive adequate consideration?

A. Reporting results of audits with recommendations to management.

B. Providing formal follow-up procedures to ensure that management complies with an action plan or accepted risk of not taking action.

C. Reporting quarterly to management that the audit plan is focused on higher exposures of risk.

D. Discussing audit findings with independent auditors.

An organization uses the management-by-objectives method, whereby employee performance is based on defined goals. Which of the following statements is true regarding this approach?

A. It is particularly helpful to management when the organization is facing rapid change.

B. It is a more successful approach when adopted by mechanistic organizations.

C. it is more successful when goal-setting Is performed not only by management, but by all team members, including lower-level staff

D. it is particularly successful in environments that are prone to having poor employeremployee relations

An organization has a mature control environment but limited internal audit resources. Given this scenario, on which of the following should the internal auditors focus their testing?

A. Detective compensating controls

B. Preventive compensating controls.

C. Detective key controls.

D. Preventive key controls

Which of the following statements is true regarding partnership liquidation?

A. Operations can continue after the liquidation, if all partners agree.

B. Partnership liquidation ends both the legal and economic life of an entity

C. Partnership liquidation occurs when there is capital deficiency.

D. When a partnership Is liquidated, each partner pays creditors from cash received

Who is responsible for ensuring internal auditors continuing professional development*

A. Individual internal auditors

B. Chief audit executive.

C. The board

D. Engagement supervisors

A multinational organization has multiple divisions that sell their products internally to other divisions When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

A. Full cost

B. Full cost plus a markup.

C. Market price of the product.

D. Variable cost plus a markup.

According to IIA guidance, which of the following is a limitation of a heat map?

A. Impact cannot be represented on a heat map unless it is quantified in financial terms

B. Impact and likelihood at times cannot be differentiated as to which is more important.

C. A heat map cannot be used unless a risk and control matrix has been developed.

D. Qualitative factors cannot be incorporated into a heat map