Free IIA-CIA-Part2 Practice Test Questions 2026

Which requirement should the chief audit executive consider when communicating results of the quality assurance and improvement program to the board of a large organization?

A. The internal assessment results should be discussed once every five years

B. The rating conclusions and the impact from results of the external assessment should be explained

C. The results of the external assessment should be discussed every seven years.

D. The qualifications and independence of the internal assessment team should be discussed

The chief audit executive (CAE) of an organization has completed this year’s risk-based audit plan and realized that current staff resources are insufficient to meet the needs of the plan. What course of action should the CAE take?

A. Amend the audit plan so that available audit resources are adequate to meet the plan’s requirements.

B. Inform the board and senior management of the resources needed, as well as the associated risks.

C. Communicate early to those unit managers whose areas would most likely not be able to get reviewed.

D. Get approval from human resources regarding overtime payment to be made in an effort to complete the audit plan.

Which of the following audit steps would an internal auditor most likely be questioned on?

A. The auditor confirms the organization's ownership of physical equipment by verifying its presence on site visually.

B. The auditor vouches for a sample of check copies to support voucher packages to test the checks' validity.

C. The auditor vouches a sales invoice to a shipping document to conclude that the invoice has been issued.

D. The auditor recalculates the allowance for doubtful accounts based on management assertions.

An internal auditor is using attributes sampling to test internal controls. Under which of the following circumstances would the auditor increase the original sample size to estimate error occurrence at a given precision and confidence level?

A. The sample rate of occurrence plus the precision exceeds the acceptable error rate.

B. The sample rate of occurrence is less than the acceptable error rate.

C. The acceptable rate of occurrence less the precision exceeds the sample rate of occurrence.

D. The sample rate of occurrence plus the precision equals the acceptable error rate.

Which of the following actions would an internal auditor perform primarily during a consulting engagement of a debt collections process?

A. Reviewing journal entries for accuracy and completeness.

B. Comparing the policies and procedures to regulatory collections guidance.

C. Advising management on streamlining the recording of accounts receivable.

D. Performing a walk-through of the debt collections process to determine whether proper segregation of duties exists

Who is responsible for ensuring internal auditors continuing professional development*

A. Individual internal auditors

B. Chief audit executive.

C. The board

D. Engagement supervisors

Which of the following statements is true regarding managements use of judgement to design, implement, and conduct internal control?

A. The use of judgment enhances managements ability to make better decisions about internal control, but cannot guarantee perfect outcomes.

B. introducing judgment generally diminishes managements ability to make good decisions about internal control

C. It is inappropriate for management to exercise judgement in areas such as specifying and using suitable accounting principles.

D. It is inappropriate for management to exercise judgement in assessing whether components are present, functioning, and operating together

Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?

A. Immediately notify management of the area under review and the other internal auditors involved in the engagement

B. Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.

C. Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud

D. Provide the evidence that was discovered to local lav/ enforcement for possible prosecution of the suspected fraud

According to IIA guidance, which of the following is based on the results of a preliminary assessment of risks relevant to the area under review?

A. Audit findings

B. Audit resources

C. Audit objectives

D. Audit plan

New environmental regulations require the board to certify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?

A. The audit committee of the board.

B. The environmental, health, and safety manager.

C. The organization's external environmental lawyers.

D. The organization's insurance department.

Which of the following conditions are necessary for successful change management?

1. Decisions and necessary actions are taken promptly.

2. The traditions of the organization are respected.

3. Changes result in improvement or reform.

4. Internal and external communications are controlled.

A. 1 and 2

B. 1 and 3

C. 2 and 3

D. 2 and 4

Which of the following actions best describes an internal auditor's use of test data to determine whether an organization's new accounts payable system avoids processing questionable invoices for payment?

A. Creating an automated tool that monitors the computer program on a daily basis for potential issues that need corrective actions.

B. Using an automated system that assists internal auditors with automating the risk analysis of the computer program for invoicing

C. Embedding tools in the computer program to analyze the review processes of invoices for potential issues that may hamper payments

D. Adding invoices to the computer program to assess the reliability and effectiveness of the review process and whether controls work.