IIA-ACCA IIA ACCA CIA Challenge Exam Free Practice Exam Questions (2025 Updated)

During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

According to IIA guidance, which of the following is true regarding the exit conference for an internal audit engagement?

An internal auditor is assessing the organization's risk management framework. Which of the following formulas should he use to calculate the residual risk?

A)

B)

C)

D)

A chief audit executive (CAE) received a detailed internal report of senior management's internal control assessment. Which of the following subsequent actions by the CAE would provide the greatest assurance over management's assertions?

An organization's board would like to establish a formal risk management function and has asked the chief audit executive (CAE) to be involved in the process. According to IIA guidance, which of the following roles should the CAE not undertake?

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?

According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?

Which of the following is an appropriate responsibility for the internal audit activity with regard to the organization's risk management program?

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?

An internal auditor submitted a report containing recommendations for management to enhance internal controls related to investments. To follow up, which of the following is the most appropriate action for the internal auditor to take?

The chief audit executive of a medium-sized financial institution is evaluating the staffing model of the internal audit activity (IAA). According to IIA guidance, which of the following are the most appropriate strategies to maximize the value of the current IAA resources?

• The annual audit plan should include audits that are consistent with the skills of the IAA.

• Audits of high-risk areas of the organization should be conducted by internal audit staff.

• External resources may be hired to provide subject-matter expertise but should be supervised.

• Auditors should develop their skills by being assigned to complex audits for learning opportunities.

Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?

According to IIA guidance,which of the following is true about the supervising internal auditor's review notes?

• They are discussed with management prior to finalizing the audit.

• They may be discarded after working papers are amended as appropriate.

• They are created by the auditor to support her fieldwork in case of questions.

• They are not required to support observations issued in the audit report.

During an audit of the accounts receivable (AR) process, an internal auditor noted that reconciliations are still not performed regularly by the AR staff, a recommendation that was made following a previous audit. Monitoring by the financial reporting function has failed to detect the shortcoming. Both the financial reporting function and AR report to the controller, who is responsible for implementing action plans. Which of the following supports the internal auditor's decision to combine both observations into one reported finding?

For which of the following fraud engagement activities would it be most appropriate to involve a forensic auditor?

According to IIA guidance, which of the following factors should the auditor in charge consider when determining the resource requirements for an audit engagement?

Which of the following is not an outcome of control self-assessment?

The final internal audit report should be distributed to which of the following individuals?

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

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 large retail organization, which sells most of its products online, experiences a computer hacking incident. The chief IT officer immediately investigates the incident and concludes that the attempt was not successful. The chief audit executive (CAE) learns of the attack in a casual conversation with an IT auditor. Which of the following actions should the CAE take?

1. Meet with the chief IT officer to discuss the report and control improvements that will be implemented as a result of the security breach, if any.

2. Immediately inform the chair of the audit committee of the security breach, because thus far only the chief IT officer is aware of the incident.

3. Meet with the IT auditor to develop an appropriate audit program to review the organization's Internet-based sales process and key controls.

4. Include the incident in the next quarterly report to the audit committee.

When constructing a staffing schedule for the internal audit activity (IAA), which of the following criteria are most important for the chief audit executive to consider for the effective use of audit resources?

1. The competency and qualifications of the audit staff for specific assignments.

2. The effectiveness of IAA staff performance measures.

3. The number of training hours received by staff auditors compared to the budget.

4. The geographical dispersion of audit staff across the organization.

Which of the following is not a primary reason for outsourcing a portion of the internal audit activity?

Which of the following factors should a chief audit executive consider when determining the audit universe?

1. Components of the organization's strategic plan.

2. Inputs from senior management and the board.

3. Views of competitors and business associates.

4. Results of exit interviews with departing employees.

According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management's response to audit recommendations?

According to IIA guidance, which of the following is true when the internal audit activity is asked to investigate potential ethics violations in a foreign subsidiary?

Which of the following components should be included in an audit finding?

1. The scope of the audit.

2. The standard(s) used by the auditor to make the evaluation.

3. The engagement's objectives.

4. The factual evidence that the internal auditor found in the course of the examination.

A large investment organization hired a chief risk officer (CRO) to be responsible for the organization's risk management processes. Which of the following people should prioritize risks to be used for the audit plan?

Which of the following statements is true pertaining to interviewing a fraud suspect?

1. Information gathered can be subjective as well as objective to be useful.

2. The primary objective is to obtain a voluntary written confession.

3. The interviewer is likely to begin the interview with open-ended questions.

4. Video recordings always should be used to provide the highest quality evidence.