Free IIA-CHAL-QISA Practice Test Questions 2026

Which of the following statements is true regarding the reporting of tangible and intangible assets?

A. For plant assets, cost includes the purchase price and the cost of design and construction

B. For intangible assets, cost includes the purchase price and development costs.

C. Due to their indefinite nature, intangible assets are not subject to amortization.

D. The organization must expense any cost incurred in developing a plant asset

According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity? 1.Consult on CSR program design and implementation 2.Serve as an advisor on CSR governance and risk management. 3.Review third parties for contractual compliance with CSR terms 4Identify and mitigate risks to help meet the CSR program objectives

A. 1,2, and 3.

B. 1.2. and 4.

C. 1, 3, and 4.

D. 2. 3. and 4.

An organization does not have a formal risk management function. According to the Standards, which of the following are conditions where the internal audit activity may provide risk management consulting?
1.There is a clear strategy and timeline to migrate risk management responsibility back to management.
2.The internal audit activity has the final approval on any risk management decisions.
3.The internal audit activity gives objective assurance on all parts of the risk management framework for which it is responsible.
4.The nature of services provided to the organization is documented in the internal audit charter.

A. 1 and 4 only.

B. 2 and 4 only.

C. 1 and 3 only.

D. 2 and 3 only.

Which of the following actions should the internal audit activity take during an audit engagement when examining the effectiveness of risk management processes?

A. Evaluate how the organization manages fraud risk.

B. Establish procedures for improving risk management processes.

C. Ensure risk responses are aligned with industry standards

D. Verify that organizational objectives are aligned with each departments objectives.

According to IIA guidance, which of the following best describes the purpose of a planning memorandum for an audit engagement?

A. It documents the audit steps and procedures to be performed.

B. it documents preliminary information useful to the audit team.

C. It documents events that could hinder the achievement of process objectives.

D. It documents existing measures that manage risks in the area under review

When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?

A. When a manufacturing organization has stable demand for its products.

B. When an organization is subjected to strong political and social pressures

C. When a manufacturer has reliable resources and suppliers.

D. When an organization is infrequently affected by technological advances

Which of the following would most likely form part of the engagement scope?

A. Potential legislation on privacy topics will be employed as a compliance target O Wire transfers that exceeded $10,000 in the last 12 months will be analyzed.

B. Both random and judgmental samplings will be used during the engagement

C. The probability of significant errors will be considered via risk assessment.

A chief audit executive (CAE) following up on action plans from previously completed audits identifies that management has determined that certain action plans are no longer necessary If the CAE disagrees with managements decision, which of the following is the most appropriate next step for the CAE to take?

A. The CAE must discuss the matter with senior management

B. The CAE must discuss the matter with key shareholders.

C. The CAE must discuss the matter with legal counsel.

D. The CAE must discuss the matter with the board

Which of the following best describes the internal audit activity's responsibility within a risk and control framework?

A. The internal audit activity constitutes the first line of defense in effective risk management.

B. The internal audit activity provides direction regarding internal controls implementation.

C. The internal audit activity verifies that management has met its responsibility for implementing effective controls.

D. The internal audit activity implements the internal control framework and advises management regarding best practices

An internal audit activity maintains a quality assurance and improvement program that includes annual self-assessments The internal audit activity includes in each engagement report a clause that the engagement is conducted in conformance with the International Standards for the Professional Practice of Internal Auditing (Standards). Which of the following justifies inclusion of this clause in the reports?

A. Internal audit activity policies and engagement records provide relevant, sufficient, and competent evidence that the statement is correct.

B. The audit committee has reviewed the annual self-assessment results and approved the use of the clause.

C. The self-assessment results were validated by a qualified external review team three years prior.

D. The internal audit charter, approved by the audit committee, requires conformance with the Standards

An internal auditor is asked to determine why the production line for a large manufacturing organization has been experiencing shutdowns due to unavailable parts The auditor learns that production data used for generating automatic purchases via electronic interchange is collected on personal computers connected by a local area network (LAN) Purchases are made from authorized vendors based on both the production plans for the next month and an authorized materials requirements plan (MRP) that identifies the parts needed per unit of production. The auditor suspects the shutdowns are occurring because purchasing requirements have not been updated for changes in production techniques. Which of the following audit procedures should be used to test the auditor's theory?

A. Compare purchase orders generated from test data Input into the LAN with purchase orders generated from production data for the most recent period.

B. Develop a report of excess inventory and compare the inventory with current production volume.

C. Compare the parts needed based on current production estimates and the MRP for the revised production techniques with the purchase orders generated from the system for the same period

D. Select a sample of production estimates and MRPs for several periods and trace them into the system to determine that input is accurate

The audit plan requires a review of the testing procedures used in pre-production of a large information system prior to its live launch. If the chief audit executive (CAE) is uncertain that the current audit team has all the required knowledge to conduct the engagement, which of the following would be the most appropriate course of action for the CAE to take to preserve independence?

A. Contract with the software vendor to provide an appropriate resource

B. Ask for a knowledgeable resource from the IT department

C. Make use of an external service provider.

D. Request audit resources through the external auditor.