Free IIA IIA-CHAL-QISA Practice Questions 2026 - Page 3

Which of the following would be considered a violation of The IIA’s mandatory guidance on independence?

A. The chief audit executive (CAE) reports functionally to the board and administratively to the chief financial officer

B. The board seeks senior managements recommendation before approving the annual salary adjustment of the CAE.

C. The CAE confirms to the board, at least once every five years, the organizational independence of the internal audit act/vity.

D. The CAE updates the internal audit charter and presents it to the board for approval periodically, not on a specific timeline

Which of the following recognized competitive strategies focuses on gaining efficiencies?

A. Focus

B. Cost leadership.

C. Innovation

D. Differentiation

An organization's health-care insurance costs have been rising approximately 10 percent per year for several years Which of the following analytical review procedures would best evaluate the reasonableness of the increase in health-care costs?

A. Develop a comparison of the costs incurred with similar costs incurred by other organizations

B. Obtain the government index of health-care costs for the comparable period of time and compare the rate of increase with that of the cost per employee incurred by the organization.

C. Obtain a bid from another health-care administrator to provide the same administrative services as the current health-care administrator.

D. Review all claims and compare with appropriate procedures to ensure that overpayments have not occurred

Which of the following statements is true regarding the management-by-objectives method?

A. Management by objectives is most helpful in organizations that have rapid changes

B. . Management by objectives is most helpful in mechanistic organizations with rigidly

C. Management by objectives helps organizations to keep employees motivated.

D. Management by objectives helps organizations to distinguish clearly strategic goals from operational goals

According to ISO 31000, which of the following statements is correct?

A. The board is responsible for setting the organizational attitude through tone at the top.

B. The internal audit activity will provide assurance over operating effectiveness but not over the design of risk management activities

C. The internal audit activity can give objective assurance on any part of the risk management framework for which it is responsible.

D. The framework is designed to be effective for organizations no matter how small.

Which of the following resources would be most effective for an organization that would like to improve how it informs stakeholders of its social responsibility performance?

A. ISO 26000

B. Global Reporting Initiative.

C. Open Compliance and Ethics Group.

D. COSO’s enterprise risk management framework.

Which of the following activities demonstrates an example of the chief audit executive performing residual risk assessment?

A. Cost-benefit analysis of management not implementing a recommendation to address an observation.

B. Inquiry of corrective action to be completed within a certain period

C. Reporting the status of every observation for every engagement in a detailed manner.

D. Soliciting management's feedback after completion of the audit engagement.

During which phase of the contracting process are contracts drafted for a proposed business activity’

A. Initiation phase.

B. Bidding phase.

C. Development phase.

D. Management phase

Which of the following is the most important determinant of the objectives and scope of assurance engagements? The organizational chart, business objectives, and policies and procedures of the area to be reviewed

A. The most recent risk assessment conducted by management of the area to be reviewed.

B. The requests of operational and senior management throughout the organization.

C. The preliminary risk assessment performed by internal auditors planning the engagement.

Which of the following is most likely to impair the organizational independence of the internal audit activity?

A. The chief audit executive (CAE) reports administratively to the chief financial officer

B. The CAE oversees the effectiveness of the organization’s risk management function.

C. The CAE reports functionally to the CEO.

D. The CAE managed the finance department for the past five years.