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ACCA CIA Challenge Exam Questions 246–250 (page: 51)

Updated On: 9-Feb-2026

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

  1. Audit client management only
  2. Executive management only
  3. Audit client management, executive management, and others approved by the chief audit executive.
  4. Audit client management, executive management, and any those who request a copy.

Answer(s): C



According to IIA guidance, which of the following individuals should receive the final audit report on a compliance engagement for the organization's cash disbursements process?

  1. The accounts payable supervisor, accounts payable manager, and controller.
  2. The accounts payable manager, purchasing manager, and receiving manager.
  3. The accounts payable supervisor, controller, and treasurer.
  4. The accounts payable manager, chief financial officer, and audit committee.

Answer(s): A



If observed during fieldwork by an internal auditor, which of the following activities is least important to communicate formally to the chief audit executive?

  1. Acts that may endanger the health or safety of individuals.
  2. Acts that favor one party to the detriment of another.
  3. Acts that damage or have an adverse effect on the environment.
  4. Acts that conceal inappropriate activities in the organization.

Answer(s): B



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?

  1. Observe corrective measures.
  2. Seek a management assurance declaration.
  3. Follow up during the next scheduled audit.
  4. Conduct appropriate testing to verify management responses.

Answer(s): D



Which of the following would most likely cause an internal auditor to consider adding fraud work steps to the audit program?

  1. Improper segregation of duties.
  2. Incentives and bonus programs.
  3. An employee's reported concerns.
  4. Lack of an ethics policy.

Answer(s): C



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