Free IIA IIA-ACCA Practice Questions 2026 - Page 3

Which of the following types of social responsibilities is voluntary and guided purely by the organization's desire to make social contributions?

A. The bottom of the pyramid responsibility.

B. Innovative responsibility.

C. Ethical responsibility.

D. Discretionary responsibility.

The chief audit executive (CAE) has assigned an internal auditor to an upcoming engagement. Which of the following requirements would most likely indicate that the internal auditor was assigned to an assurance engagement?

A. The assigned internal auditor must determine the objectives, scope, and techniques of the engagement.

B. The CAE must personally obtain the needed skills, knowledge, or other competencies if the internal auditor does not have them.

C. The assigned internal auditor must not assume management responsibilities while performing the engagement.

D. The assigned internal auditor must maintain objectivity while performing the engagement.

According to IIA guidance, which of the following statements describes one of the similarities between assurance and consulting services?

A. When planning assurance and consulting engagements, internal auditors must consider the strategies and objectives of the activity being reviewed.

B. Internal auditors determine the engagement objectives, scope, and work program for both assurance and consulting services.

C. Internal auditors must not provide assurance or consulting services for an activity for which they had responsibility within the previous year.

D. Both assurance and consulting services generally involve the internal auditor, the area under review, senior management, and the board.

Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?

A. Manage and support a quality assurance and improvement program.

B. Maintain industry-specific knowledge appropriate to the audit engagements

C. Set clear performance standards for internal auditors and the internal audit activity.

D. Apply problem-solving techniques for routine situations.

Which of the following actions should the audit committee take to promote organizational independence for the internal audit activity?

A. Delegate final approval of the risk-based internal audit plan to the chief audit executive (CAE).

B. Approve the annual budget and resource plan for the internal audit activity.

C. Assist the CAE with hiring objective and competent internal audit staff.

D. Encourage the CAE to communicate and coordinate with the external auditor.

Which of the following enhances the independence of the internal audit activity?

A. The chief audit executive (CAE) approves the annual internal audit plan.

B. The CAE administratively reports to the board.

C. The audit committee approves the CAE's annual salary increase.

D. The chief executive officer approves the internal audit charter.

Which of the following is an example of a detective control?

A. Automatic shut-off valve.

B. Auto-correct software functionality.

C. Confirmation with suppliers and vendors.

D. Safety instructions.

A furniture manufacturer has installed a new fire sprinkler system at its central warehouse and canceled the existing fire insurance policy on that property. What change of risk response strategy does this course of action most likely reflect?

A. From sharing to reduction.

B. From acceptance to reduction.

C. From sharing to avoidance.

D. From acceptance to avoidance.

Which of the following items should the chief audit executive disclose to senior management regarding the results of the internal audit activity's quality assessments?

A. The internal audit activity's plan for resource allocation.

B. The amount of the organization's potential loss prevented by the risk-based auditing of the internal audit activity.

C. The number of audits from the annual internal audit plan that were completed last year.

D. The qualifications and independence of the assessment Team.

According to IIA guidance, which of the following scenarios demonstrates an internal auditor exercising due professional care?

When auditing investments, the auditor identified instruments with which he was unfamiliar. He decided not to select that type of investment in his sample, as he did not have the knowledge needed to

A. perform a proper assessment.

B. An auditor was reviewing inventory counts conducted by the warehouse staff. One truck containing an immaterial amount of inventory was off-site and wasn't verified by the auditor.

C. An auditor visited a plant that produces a significant portion of the organization's inventory. The day he arrived, the plant manager was out sick, so the auditor issued the report without interviewing the manager.

D. An auditor in charge needed to have testing completed by the end of the month, but was behind schedule. He identified a junior auditor to conduct the work for him on a complex area of the organization.