Free IIA IIA-ACCA Practice Questions 2026 - Page 10

Which of the following types of fraud includes embezzlement?

A. Fraudulent statements.

B. Bribery.

C. Misappropriation of assets.

D. Corruption.

Which of the following is the primary engagement responsibility of an entry-level internal auditor?

A. Leadership.

B. Documentation.

C. Analysis.

D. Reporting.

A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

A. Continuously monitor the organization's overall risk activities in relation to its risk appetite.

B. Evaluate the adequacy and effectiveness of the organization's governance activities.

C. Oversee the establishment and administration of an effective risk management program.

D. Assist management in implementing recommended control improvements.

An internal auditor is conducting an assessment of the organization's fraud prevention program using the COSO enterprise risk management framework. According to this framework, which of the following activities would fall under the control environment component for preventing fraud?

1. The organization uses an automated authority approval matrix to control payments.
2. The organization has a whistleblower hotline that is available to employees.
3. Annually, every manager completes a comprehensive fraud assessment of his or her department.
4. Annually, the organization reviews and communicates the code of expected behavior.

A. 1 and 2.

B. 1 and 3.

C. 2 and 3.

D. 2 and 4.

Which of the following is a requirement for an assurance engagement that may not be for a consulting engagement?

A. The internal audit activity has to ensure team members' objectivity is not impaired.

B. Auditors cannot participate in an assurance engagement of a function for which they previously performed a consulting engagement.

C. The scope and objective of the engagement is agreed upon based on the engagement client's needs.

D. The internal audit activity must ensure management actions have been implemented effectively or risk accepted.

The security department uncovered what appears to be a complex fraud in the accounting department. The CEO has requested the internal audit activity to investigate the fraud. If the internal audit staff lacks the expertise to conduct the investigation, how should the chief audit executive proceed?

A. Disclose the deficiency, and request that the investigation be reassigned to the first line of defense.

B. Proceed with the investigation, as internal auditors are not required to have fraud expertise.

C. Outsource the sensitive investigation to a third-party consultant with fraud expertise.

D. Select a member of the accounting department who is not involved in the fraud to join the investigation team in a consulting capacity.

Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?

1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.

A. 1 and 4

B. 2 and 3 only

C. 1, 2, and 3

D. 2, 3, and 4

Which of the following would be considered a violation of The IIA's mandatory guidance on independence?

A. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer.

B. The board seeks senior management's recommendation before approving the annual salary adjustment of the CAE.

C. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit activity.

D. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline.

Which of the following is an activity that an internal auditor must not perform?

A. Establish and provide continuing assurance on an anti-money laundering program for new hires.

B. Survey employees for their understanding of anti-money laundering practices.

C. Provide assurance for the effectiveness of anti-money laundering training.

D. Assess the risk of being fined for ineffective anti-money laundering practices.

Which of the following is most likely to function as a directive control?

A. Security dogs.

B. Alert employees.

C. Insurance claims.

D. Cycle counts.