Free IIA IIA-ACCA Practice Questions 2026 - Page 2

An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

A. Higher inventory turnover.

B. Higher operating margin.

C. Lower obsolete stock disposal.

D. Lower sales volume.

According to IIA guidance, which of the following is not a responsibility of the chief audit executive pertaining to documenting information to support internal audit engagement results and conclusions?

A. Rating each engagement record to assess its relevance and accessibility for the organization's board.

B. Controlling access to engagement records, including access by senior management.

C. Developing retention requirements for engagement records that are consistent with organizational guidelines.

D. Forming policies governing the custody and retention of consulting engagement records before their release to other parties.

According to IIA guidance, which of the following practices by the chief audit executive (CAE) best enhances the organizational independence of the internal audit activity?

A. CAE reviews and approves the annual audit plan.

B. CAE meets privately with The CEO at least annually.

C. CAE meets privately with The board at least annually.

D. CAE reports to the board regarding audit staff performance evaluation and compensation.

Which of the following statements is true regarding assurance services provided to clients outside of the organization?

A. Assurance services for outside clients are not covered under the internal audit charter.

B. Assurance services for outside clients must be approved on a case-by-case basis by the board of directors.

C. The nature of assurance services for outside clients should be defined in the internal audit charter.

D. The nature of assurance services for outside clients is the same as for internal clients.

What should the internal auditor's role be in assessing the organization's ethical climate?

A. Perform ongoing surveys of the employees, customers, and partners of the organization to assess the organization's ethical climate. ^Evaluate the effectiveness of the organization's strategies and B. processes for achieving the desired level of legal and ethical compliance.

B. Maintain a whistleblower hotline to identify inappropriate or illegal activity within the organization.

C. Perform background checks of potential new employees before they are hired by the organization.

The management at a national consumer goods organization implements a fair work and pay practice as well as a policy to treat employees equitably and consistently. Which common characteristics of fraud will the practice and policy most likely reduce?

A. Pressure or incentive.

B. Opportunity.

C. Rationalization.

D. Commitment.

An internal audit activity includes in its audit reports the assertion that its work is performed in conformance with the International Standards for the Professional Practice of Internal Auditing {Standards). A recent external quality assessment concluded that the internal audit activity had substantial deficiencies that impact its overall operations. According to IIA guidance, which of the following is the most appropriate action for issuing future audit reports?

A. Refrain from indicating that the internal audit activity operates in conformance with the Standards until the chief audit executive confirms that the internal audit activity has addressed all areas of nonconformance and the audit committee has been notified.

B. Refrain from indicating that the internal audit activity operates in conformance with the Standards until another external assessment confirms that the significant areas of nonconformance have been addressed.

C. Indicate that the internal audit activity operates in partial conformance with the Standards, as the internal audit activity has a quality assurance and improvement program in place to address deficiencies and has met the requirement for conducting an external assessment.

D. Update and reissue previous audit reports, removing the assertion that the internal audit activity operates in conformance with the Standards, and distribute them to all parties who received the original reports.

An internal audit team is performing an audit of workplace accident claims.
Which of the following actions by the audit team best demonstrates due professional care?

A. Having an occupational health officer on the engagement team.

B. Determining that the claims have been classified properly.

C. Placing reliance on medical reports from the injured worker's doctor.

D. Reviewing claims to ensure all accidents actually occurred in the workplace.

The internal audit activity is planning a procurement audit and needs to obtain a thorough understanding of the subcontracting process, which can involve multiple individuals in multiple countries.
Which of the following internal audit tools would be most effective to document the process and the key controls?

A. Internal control checklist.

B. Procurement employee survey.

C. Cross-functional flow chart.

D. Segregation of duties matrix.

A large trucking organization wants to reduce traffic accidents by improving its system of internal controls.
Which of the following controls is correctly classified?

1. Review of speeding violations to identify repetitive locations and drivers is an example of a preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.

A. 1 and 2.

B. 1 and 4.

C. 2 and 3.

D. 3 and 4.