IIA-ACCA Exam Questions and Answers

QUESTION: 21

An internal auditor is reviewing the accounts receivable when she discovers account balances more than three years old. The auditor was previously supervising the area during this time, and she subsequently advises the chief audit executive (CAE) of a potential conflict.
Which of the following is the most appropriate course of action for the CAE to take?

Replace the auditor with another audit staff member.
Continue with the present auditor, as more than one year has passed.
Withdraw the audit team and outsource the financial audit of the division.
Work with the division's management to resolve the situation.

Answer(s): A

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QUESTION: 22

Which of the following best ensures the independence of the internal audit activity?
1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.
2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.
3. The internal audit charter requires the CAE to report functionally to the audit committee.

3 only
1 and 2 only
2 and 3 only
1, 2, and 3

Answer(s): C

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QUESTION: 23

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

The chief audit executive (CAE) approves the annual internal audit plan.
The CAE administratively reports to the board.
The audit committee approves the CAE's annual salary increase.
The chief executive officer approves the internal audit charter.

Answer(s): C

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QUESTION: 24

Which of the following statements describes impairment to the internal auditor's objectivity?

An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
An internal auditor reduces the scope of an audit engagement due to budget restrictions.
An internal auditor receives a promotional gift that is available to the organization's employees.
An internal auditor performs an assessment of the operations for which he was recently responsible.

Answer(s): D

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QUESTION: 25

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

Postpone the audit until the CAE hires internal audit staff with the required knowledge.
Ask the audit committee to decide the course of action.
Select the most experienced auditors in the department to perform the engagement.
Hire consultants who possess the required knowledge to perform the engagement.

Answer(s): D

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IIA IIA-ACCA Exam (page: 5) IIA ACCA CIA Challenge Exam Updated on: 15-Feb-2026

QUESTION: 21

QUESTION: 22

QUESTION: 23

QUESTION: 24

QUESTION: 25

IIA IIA-ACCA Exam (page: 5)
IIA ACCA CIA Challenge Exam
Updated on: 15-Feb-2026