ACCA CIA Challenge Exam (IIA-ACCA) Free Practice Test

Question 1

Which of the following statements is true with regard to conducting an effective quality assurance and improvement program?

A. The IIA's Quality Assessment Manual for the Internal Audit Activity must be used as the basis for periodic assessments.

B. Members of the internal audit activity are not permitted to perform quality assessments, as they would not be independent.

C. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.

D. Periodic internal assessments provide the most current and independent recommendations for improvement.

Correct Answer: C

Question 2

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.

Correct Answer: B

Question 3

According to IIA guidance, which of the following statements is true regarding the authority of the chief audit executive (CAE) to release previous audit reports to outside parties?

A. The CAE can only release prior information outside the organization when mandated by legal or statutory requirements.

B. The CAE can release prior information provided it is as originally published and distributed within the organization.

C. The CAE can release prior internal audit reports with the approval of the board and senior management.

D. The CAE can employ judgment and release prior audit results as they deem appropriate and necessary.

Correct Answer: D

Question 4

Which of the following is the most effective control to prevent unauthorized entrance of a former employee of the organization?

A. Installing security guards who have undergone a background check at all entrances.

B. Keeping doors locked and accessible with a key that is provided only to employees

C. Revoking the former employee's biometrics from the entrance systems

D. Installing multiple high-powered surveillance cameras throughout the organization

Correct Answer: C

Question 5

Which of the following are included in ISO 31000 risk principles and guidelines?

A. Standards, framework, and process.

B. Standards, assessments, and process.

C. Principles, practices, and process.

D. Principles, framework, and process.

Correct Answer: D

Question 6

An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

A. Software encryption

B. Hardware encryption.

C. Authentication.

D. Data encryption.

Correct Answer: D

Question 7

A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

A. Assist management in implementing recommended control improvements.

B. Evaluate the adequacy and effectiveness of the organization's governance activities.

C. Continuously monitor the organization's overall risk activities in relation to its risk appetite.

D. Oversee the establishment and administration of an effective risk management program.

Correct Answer: D

Question 8

Which of the following is a common type of payroll fraud?

A. Skimming.

B. Unauthorized overtime.

C. Unearned bonuses or commissions.

D. Fictitious employees.

Correct Answer: D

Question 9

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

A. Authorizing an investigation of an unsafe product.

B. Discussing periodic reports of ethical breaches.

C. Requesting a private meeting with senior management, without the presence of the chief audit executive.

D. Intervening during an audit involving ethical wrongdoing.

Correct Answer: D

Question 10

Internal auditors must exercise due professional care by considering which of the following?
1. Cost of assurance in relation to potential benefits.
2. Adequacy and effectiveness of governance, risk management, and control processes.
3. Management's competency level in the area being evaluated.
4. Probability of significant errors, fraud, or noncompliance.

A. 2, 3, and 4 only

B. 1 and 2 only

C. 1, 2, and 4 only

D. 1, 2, and 3 only

Correct Answer: C

Question 11

Sometimes, internal audit staff may partner with operating managers to rank risks. Which of the following outcomes may be the most beneficial aspects of this strategy?
1. Reappraising risks levels.
2. Providing accurate information to management.
3. Marketing the internal audit activity.
4. Planning safeguards for assets in high-risk areas.

A. 3 and 4.

B. 1 and 3.

C. 1 and 2.

D. 2 and 3.

Correct Answer: B

Question 12

Which of the following must be adjusted to index a progressive tax system to inflation?

A. Tax brackets, exemptions, and nominal tax receipts.

B. Tax deductions, exemptions, and tax filings.

C. Tax brackets, tax deductions, and tax payments.

D. Tax deductions, exemptions, and tax brackets.

Correct Answer: D

Question 13

A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

A. Check digits.

B. Data integrity tests.

C. Logic test.

D. Balancing control activities.

Correct Answer: C

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IIA ACCA CIA Challenge (IIA-ACCA) Free Practice Test