Free IIA IIA-ACCA Practice Questions 2026 - Page 14

Which of the following statements describes impairment to the internal auditor's objectivity?

A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.

B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.

C. An internal auditor receives a promotional gift that is available to the organization's employees.

D. An internal auditor performs an assessment of the operations for which he was recently responsible.

Which of the following is considered a violation of The IIA's Code of Ethics?

A. An auditor conveys public information about an organization's financial condition.

B. An auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.

C. An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.

D. An auditor reports material deficiencies, despite the fact that management is already aware of the defects.

According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

A. To enable Triple Bottom Line reporting capability.

B. To facilitate the conduct of risk assessment.

C. To achieve and maintain sustainable development.

D. To fulfill regulatory and compliance requirements.

Which of the following is the most common method of fraud detection?

A. Analytical reviews of high-risk areas.

B. Detective controls built into the daily processes.

C. Unannounced audits or reviews of programs or departments.

D. Tips received from employees or citizens.

Which of the following is an example of a management control technique?

A. A budget.

B. A risk assessment.

C. The board of directors.

D. The control environment.

Which of the following is most likely to be considered a control weakness?

A. Vendor invoice payment requests are accompanied by a purchase order and receiving report.

B. Purchase orders are typed by the purchasing department using prenumbered forms.

C. Buyers promptly update the official vendor listing as new supplier sources become known.

D. Department managers initiate purchase requests that must be approved by the plant superintendent.

An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls. Which of the following would be an appropriate conclusion to report to management?

A. The residual risk is lower than or equal to the risk appetite.

B. The residual risk is higher than or equal to the risk appetite.

C. The inherent risk is lower than or equal to the risk tolerance.

D. The inherent risk is higher than or equal to the risk tolerance.

Which of the following statements is true with regard to conducting an effective quality assurance and improvement program?

A. The IIA's Quality Assessment Manual for the Internal Audit Activity must be used as the basis for periodic assessments.

B. Members of the internal audit activity are not permitted to perform quality assessments, as they would not be independent.

C. Periodic internal assessments provide the most current and independent recommendations for improvement.

D. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

A. Management will be able to reduce inherent risk because they will have a better understanding of risk.

B. Internal auditors will be able to reduce their sample sizes because controls will be more consistent.

C. Stakeholders will have more assurance that the risks are assessed consistently.

D. Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

A. Postpone the audit until the CAE hires internal audit staff with the required knowledge.

B. Ask the audit committee to decide the course of action.

C. Select the most experienced auditors in the department to perform the engagement.

D. Hire consultants who possess the required knowledge to perform the engagement.