Free IIA IIA-ACCA Practice Questions 2026 - Page 21

Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?

A. The financial interest the service provider may have in the organization.

B. The relationship the service provider may have had with the organization or the activities being reviewed.

C. Compensation or other incentives that may be applicable to the service provider.

D. The service provider's experience in the type of work being considered.

The board has asked the internal audit activity (IAA) to be involved in the organization's enterprise risk management process. Which of the following activities is appropriate for IAA to perform without safeguards?

A. Coach management in responding to risks.

B. Develop risk management strategies for board approval.

C. Facilitate identification and evaluation of risks.

D. Evaluate risk management processes.

An internal auditor notes that employees continue to violate segregation-of-duty controls in several areas of the finance department, despite previous audit recommendations. Which of the following recommendations is the most appropriate to address this concern?

A. Recommend additional segregation-of-duty reviews.

B. Recommend appropriate awareness training for all finance department staff.

C. Recommend rotating finance staff in this area.

D. Recommend that management address these concerns immediately.

According to IIA guidance, which of the following actions might place the independence of the internal audit function in jeopardy?

A. Having no active role or involvement in the risk management process.

B. Auditing the risk management process for reasonableness.

C. Coordinating and managing the risk management process.

D. Participating with management in identifying and evaluating risks.

Which of the followings statements describes a best practice regarding assurance engagement communication activities?

A. All assurance engagement observations should be communicated to the audit committee.

B. All assurance engagement observations should be included in the main section of the engagement communication.

C. During the "communicate" phase of an assurance engagement, it is best to define the methods and timing of engagement communications.

D. A detailed escalation process should be developed during the planning stage of an assurance engagement.

According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

A. The accounts payable supervisor, accounts payable manager, and controller.

B. The accounts payable manager, purchasing manager, and receiving manager.

C. The accounts payable supervisor, controller, and treasurer.

D. The accounts payable manager, chief financial officer, and audit committee.

Which of the following is a detective control for managing the risk of fraud?

A. Awareness of prior incidents of fraud.

B. Contractor non-disclosure agreements.

C. Verification of currency exchange rates.

D. Receipts for employee expenses.

When developing the scope of an audit engagement, which of the following would the internal auditor typically not need to consider?

A. The need and availability of automated support.

B. The potential impact of key risks.

C. The expected outcomes and deliverables.

D. The operational and geographic boundaries.

An internal auditor and engagement client are deadlocked over the auditor's differing opinion with management on the adequacy of access controls for a major system. Which of the following strategies would be the most helpful in resolving this dispute?

A. Conduct a joint brainstorming session with management.

B. Ask the chief audit executive to mediate.

C. Disclose the client's differing opinion in the final report.

D. Escalate the issue to senior management for a decision.

It is close to the fiscal year end for a government agency, and the chief audit executive (CAE) has the following items to submit to either the board or the chief executive officer (CEO) for approval. According to IIA guidance, which of the following items should be submitted only to the CEO?

A. The internal audit risk assessment and audit plan for the next fiscal year.

B. The internal audit budget and resource plan for the coming fiscal year.

C. A request for an increase of the CAE's salary for the next fiscal year.

D. The evaluation and compensation of the internal audit team.