Free IIA-CIA-Part2 Practice Test Questions 2026

An internal audit manager assigns an audit team to test purchase transactions by selecting a sample from transactions processed by each of the three procurement officers.

Which of the following techniques will help the audit team achieve this sampling objective?

A. Systematic sampling.

B. Stratified sampling.

C. Stop-or-go sampling

D. Discovery sampling.

Senior management is challenging regulatory fines that were assessed to the organization due to questionable business practices. Their actions and the fines could have an adverse effect on the organization's ability to continue business. How would the chief audit executive respond?

A. Assume responsibility for quantifying and minimizing the residual risks to the organization.

B. Assess the level of financial risks that may affect the organization's stability.

C. Inform the regulatory agency about senior management's action and seek guidance.

D. Proceed with a consulting engagement to benchmark similar organizations' business practices in the region.

Which of the following activities would an internal auditor perform as a consulting engagement for an organization?

A. Advising new internal auditors working for the organization on how to develop strategies on planning audits for the upcoming fiscal year

B. Assessing whether the organization's corporate social responsibility program is meeting its yearly goals to reduce carbon emissions.

C. Briefing the organization's department managers on how to implement risk management processes into their daily operations.

D. Communicating with senior management to better understand how new purchasing controls will minimize payment processing time

Which statement best describes the benefit of using workpapers from recent internal audit engagements of the area under review to plan new engagements?

A. Recent workpapers can help during the planning of a new engagement to understand any corrective actions taken by management to address previous engagement observations.

B. Tests described in recent workpapers can be copied into the new workpapers to save time from reperforming a risk assessment.

C. Recent workpapers serve as the best source for identification of the risks to be examined in the new engagement.

D. The new engagement scope can be derived from recent workpapers to ensure the reperformance of engagement procedures.

An internal auditor of a construction organization found that completed inspection results, required by the organization's policy, were missing from the computer system. Which of the following, if included in the audit report, would demonstrate that the auditor performed a root cause analysis of this observation?

A. Some inspection results were missing from the computer system.

B. The results of lengthy inspections were more likely to be omitted from the computer system.

C. Flaws in the computer system prevented employees from saving their inspection results.

D. Employees did not ensure that inspection results were completed in the computer system.

An auditor reviews tender results for the procurement of construction equipment. Based on her significant experience the auditor believes that the obtained bid prices are too high. Which of the following is required to develop a relevant conclusion?

A. Description of the procurement policy

B. Summary of the tendering process

C. Substantiated and comparative evidence

D. Impact analysis of unfavorable prices

An organization's health-care insurance costs have been rising approximately 10 percent per year for several years Which of the following analytical review procedures would best evaluate the reasonableness of the increase in health-care costs?

A. Develop a comparison of the costs incurred with similar costs incurred by other organizations

B. Obtain the government index of health-care costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.

C. Obtain a bid from another health-care administrator to provide the same administrative services as the current health-care administrator.

D. Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred

An internal audit engagement supervisor approved the engagement work program submitted by an internal auditor and concluded that it satisfied engagement objectives. At the end of the engagement, the engagement supervisor reviewed the completed work program and found numerous deficiencies and inconsistencies in the engagement workpapers. Which of the following should be improved in the process of engagement supervision?

A. The supervisor should regularly review the engagement team's workpapers throughout the engagement, including raising questions and providing guidance.

B. The supervisor should evaluate whether the engagement work program includes audit procedures relevant to engagement objectives.

C. The supervisor should thoroughly document all concerns prior to signing off the completed workpapers and finalizing the work program.

D. The supervisor should issue a satisfaction questionnaire to management of the activity that was under review to understand the root causes of deficient performances.

An internal auditor is conducting an assurance engagement. One engagement objective is to evaluate the project manager’s effectiveness at controlling project costs. Which of the following audit tests should be included in the engagement program?

A. Prepare a bank reconciliation statement for all the bank accounts of the organization

B. Track a sample of project payments from accounts payable to concluded agreements and authorization rights

C. Validate the accuracy of assumptions and inputs used for calculations in the project’s feasibility model

D. Investigate whether the budget of the project was approved timely as required by internal policies

An internal auditor is reviewing the accuracy of commission payments by recalculating 100% of the commissions and comparing them to the amount paid. According to IIA guidance, which of the following actions is most appropriate for identified variances?

A. Document the results and report the overall percentage of variances.

B. Determine the significance of the variances and investigate causes as needed.

C. Review the results and investigate the cause of all variances.

D. Report all variances to management and request an action plan to remediate them.

Which of the following is true about surveys?

A. A survey with open-ended questions is weaker than a structured interview

B. A survey with closed-ended questions can produce quantifiable evidence

C. A survey's participants are likely to volunteer information that was not specifically requested

D. A survey, like inspections and confirmations are best used to test the operating effectiveness of controls

An internal auditor collected several employee testimonials Which of the following is the best action for the internal auditor to take before drawing a conclusion?

A. Ensure the testimonials are well documented

B. Substantiate the testimonials with physical or documentary evidence

C. Corroborate testimonials with the results from other soft control techniques

D. Review the testimonials with the interviewed employees