Free IIA-CIA-Part2 Practice Test Questions 2026

Which of the following documents are internal auditors most likely to be asked to sign as a demonstration of due professional care?

A. A description of their job responsibilities.

B. A non-disclosure agreement

C. An annual declaration of commitment to The HAs Code of Ethics.

D. The internal audit charter

An examination of the accounts payable function evidenced multiple findings with respect to segregation of duties. After management's response and action plan are received and documented in the final report, which of the following is most appropriate?

A. Follow up after the applicable changes have been incorporated to validate management’s response.

B. Include the items in the scope of the next scheduled audit of the accounts payable function.

C. Because management agreed with the findings, no further action is deemed necessary.

D. Have an internal audit staff member placed into the accounting department until corrections are made.

Which of the following should be included in a company's year-end inventory valuation?

A. Company goods that were sold during the year, free on board shipping point, that have been shipped but not yet received by the customer

B. Goods purchased by the company, free on board destination, that have not yet been received.

C. Goods on consignment, which the company is trying to sell for its customers.

D. Company goods for sale on consignment at a consignment shop

Which of the following best describes why an internal audit activity would consider sending written preliminary observations to the audit client?

A. Written observations allow for more interpretation.

B. Written observations help the internal auditors express the significance.

C. Written and verbal observations are equally effective.

D. Written observations limit premature agreement

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.

Which of the following statements is true regarding the audit objective for an assurance engagement?

A. Operational management must determine the audit objective in cooperation with the internal auditor

B. The audit objective may be adjusted after the start of an engagement and it does not need to align with the assessed risks

C. The audit objective must consider the possibility of fraud and noncompliance

D. The audit objective may or may not consider the possibility of fraud depending on the assessed likelihood and impact

Which of the following is a significant governance issue that should be reported by the chief audit executive to the board?

A. There is no risk management and control process and risk management is solely tie responsibility of operational managers

B. The organisation’s code of conduct is distributed to employees each year however employees are not required to attest that they will operate In compliance with the code.

C. Reconciliation of planned board meeting agendas to meeting minutes finds that one meeting was canceled, and the agenda topics were covered at the following meeting.

D. The review of the five-year strategic plan shows that the details of the plan have not been dearly communicated to employees throughout the organization

Which of the following statements is true regarding the use of internal control questionnaires (ICOs)?

A. ICQs are efficient because they minimize the need for follow-up with survey respondents

B. Controls with positive survey responses can be eliminated from further testing

C. Answers to survey questions can be easily misinterpreted

D. ICQs offer limited value for organizations with uniform procedures

Which of the following approaches would best help an internal auditor determine whether a retailer database of 100,000 customers has nay duplicate accounts?

A. Stratifying the customer information

B. Extracting the customer information

C. Filtering the customer information

D. Sorting the customer information

Which of the following statements about internal audit's follow-up process is true?

A. The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.

B. The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.

C. Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.

D. The follow-up process must be complete and documented in the working papers in order to conclude the engagement.

Which of the following statements is true regarding the management-by-objectives method?

A. Management by objectives is most helpful in organizations that have rapid changes

B. Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.

C. Management by objectives helps organizations to keep employees motivated.

D. Management by objectives helps organizations to distinguish clearly strategic goals from operational goals

A newly appointed chief audit executive (CAE) of a small organization is developing a resource management plan Which of the following approaches would be most beneficial to help the CAE obtain details of the Internal audit activity's collective knowledge skills, and other competencies?

A. Review or establish a documented skills assessment of the internal audit staff and gather information from post-audit surveys

B. Obtain from the human resources department the job descriptions and position requirements for all internal audit staff

C. Conduct an objective written test of the internal audit staff to assess their knowledge and skills related to core internal audit competencies

D. Request the internal audit staff to submit a document that summarizes their most recent performance appraisals and post audit reviews