Free IIA IIA-ACCA Practice Questions 2026 - Page 16

Which of the following are components of the ISO 31000 risk management process?

1. Setting the context.
2. Risk treatment.
3. Risk avoidance.
4. Communication.

A. 1 and 2 only.

B. 2 and 3.

C. 3 and 4.

D. 1,2, and 4.

What is the additional advantage of facilitated workshops, in comparison with structured interviews, used when testing the effectiveness of entity-level controls?

A. During facilitated workshops, people more openly say things to internal auditors than during private interviews.

B. Internal auditors do not need other sources of information, as the data gathered during facilitated workshops is sufficient.

C. Facilitated workshops create a synergy of discussion that can bring multiple perspectives to the same issue.

D. The testimonial evidence obtained during facilitated workshops is generally considered more reliable.

An organization is facing a financial downturn and needs to impose major budget reductions to all departments. According to MA guidance, which of the following actions is most appropriate for the board to take to evaluate the potential impact on the internal audit activity?

A. Ask management to determine which internal audit engagements are lower risk and could be considered for removal from the annual audit plan.

B. Ask appropriate stakeholders for their opinion on the potential impacts of reducing the scope of the internal audit plan.

C. Ask the chief audit executive to determine whether budgetary limitations impede the ability of the internal audit activity to execute its responsibilities.

D. Ask The human resources department to determine how the annual compensation and salary of the audit staff could be adjusted to achieve savings.

In which of the following scenarios would the chief audit executive (CAE) be required to decline the assignment?

A. The CAE would need to procure external services to deliver the internal audit assurance program.

B. There is no expertise within the internal audit team for detecting and investigating fraud.

C. There is no expertise within the internal audit team for auditing an IT engagement.

D. There is no available expertise on the internal audit team to perform a consulting engagement.

Which of the following combinations of conditions is most likely a red flag for fraud?

A. The practice of surprise audits and the implementation of an employee support program.

B. Hiring an employee with a prior fraud conviction and yearly management review.

C. Occasional accounting department overrides and discontinuation of the anonymous fraud hotline due to infrequent use.

D. A veteran employee in upper management experiencing financial difficulties and recently implemented enhanced controls.

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

A. Requesting a private meeting with senior management, without the presence of the chief audit executive.

B. Intervening during an audit involving ethical wrongdoing.

C. Discussing periodic reports of ethical breaches.

D. Authorizing an investigation of an unsafe product.

According to IIA guidance, which of the following should be included in the internal audit charter?

A. The minimum resources and competencies needed for the internal audit activity.

B. Identification of the organizational units where engagements are to be performed.

C. Organizational relationships and reporting lines.

D. Assigned responsibilities for designing and implementing controls.

In the area of business acumen, which of the following competencies would be the sole responsibility of an internal audit staff member?

A. Maintaining industry-specific knowledge appropriate to the organization.

B. Assessing how IT contributes to organization objectives, risks, and relevance to audit.

C. Maintaining technical aspects of accounting standards and reporting processes.

D. Understanding regulatory and legal framework and assessing its relevance.

Which of the following scenarios best illustrates the principle of due professional care?

A. An internal auditor evaluates the significant risks arising from a consulting engagement.

B. An internal auditor declares that he would have a conflict of interest in providing planned audit support.

C. An internal auditor has been given sufficient authority to access documents needed to make an appraisal of an issue.

D. An internal auditor uses technology-based audit techniques to ensure that all significant risks are identified.

Which of the following actions would be characterized as a preventive control to safeguard inventory from the risk of theft?

1. Locking doors and physically securing inventory items.
2. Independently observing the receipt of materials.
3. Conducting monthly inventory counts.
4. Requiring the use of employee ID badges at all times.

A. 1 and 3.

B. 1 and 4.

C. 2 and 3.

D. 2 and 4.