ACCA Practice Test 2026

About the ACCA exam

The Association of Chartered Certified Accountants (ACCA) is a professional examination administered in UK. It is designed to assess candidates' knowledge and proficiency across 5 key subject areas including Financial Reporting, Audit & Assurance, Tax, Performance Management. This exam is widely recognized as an essential benchmark for students and professionals.

Use short ACCA practice sets to identify topics to revisit. Choose a subject and difficulty, answer questions, then review the explanations. New accounts get 30 question credits; further new questions use paid credits. Retaking previously seen questions is free.

Whether you're a first-time candidate or retaking the ACCA to improve your score, InfinityMock helps you identify your strengths and weaknesses through detailed performance analytics. Our platform covers Financial Reporting, Audit & Assurance, Tax, Performance Management, Financial Management, with questions available at Easy, Medium, and Hard difficulty levels. Track your progress, review detailed explanations, and build the confidence you need to pass on exam day.

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8 free ACCA practice questions (2026)

Answer these first — no signup, no card. Every answer is explained. For more practice, sign up for 30 free question credits and choose a subject above.

1. Under the ACCA Code of Ethics and Conduct, which of the following is the fee threshold for public interest entity (PIE) audit clients where a self-interest threat is created if total fees exceed this percentage of the firm's total fee income for two consecutive years?

   • 10%
   • 15%
   • 20%
   • 25%
   Show answer & explanation

   Answer: B. 15%

   According to the ACCA Code of Ethics and Conduct, if the total fees from a public interest entity (PIE) client exceed 15% of the firm's total fees for two consecutive years, a self-interest threat is created, and safeguards (such as pre-issuance review) must be applied.

   Topic: Audit & Assurance · medium

2. During the audit of a retail company, the auditor discovers that goods are frequently dispatched to customers without a matching, approved customer sales order. Which of the following risks does this internal control deficiency primarily create?

   • Sales invoices may be generated for fictitious goods.
   • Goods may be dispatched to customers who are not creditworthy.
   • Recorded revenue may be understated at the year-end.
   • Inventory quantities on hand may be overvalued in the general ledger.
   Show answer & explanation

   Answer: B. Goods may be dispatched to customers who are not creditworthy.

   Without a matching, approved customer sales order, there is no verification of credit approval before goods are dispatched. This increases the risk of bad debts and dispatching goods to non-creditworthy customers.

   Topic: Audit & Assurance · medium

3. Which of the following audit procedures is most effective for detecting unrecorded trade payables at the year-end (testing for completeness)?

   • Selecting a sample of trade payables from the purchases ledger and tracing them to supplier invoices.
   • Vouching a sample of payments made after the year-end to supporting documentation and verifying if they relate to goods received before the year-end.
   • Reconciling supplier statements received directly from the suppliers to the individual ledger accounts.
   • Confirming a sample of trade payables directly with suppliers via positive circularisation.
   Show answer & explanation

   Answer: B. Vouching a sample of payments made after the year-end to supporting documentation and verifying if they relate to goods received before the year-end.

   To test for completeness of trade payables (unrecorded liabilities), the auditor must look outside the ledger. Reviewing post-year-end payments and tracing them to pre-year-end goods received notes (GRNs) is the most effective way to identify unrecorded year-end liabilities.

   Topic: Audit & Assurance · hard

4. Which of the following is an example of an audit risk, rather than a business risk?

   • A competitor introduces a superior technology, making the client's inventory obsolete.
   • The client introduces a complex new ERP system during the financial year, leading to potential data migration errors.
   • A decline in economic conditions reduces consumer demand for the client's products.
   • The client's main production facility is shut down due to a labour strike.
   Show answer & explanation

   Answer: B. The client introduces a complex new ERP system during the financial year, leading to potential data migration errors.

   Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. A complex ERP migration increases the risk of material misstatement in the financial statements. The other options are business risks that may indirectly affect the financial statements but are primarily strategic or operational threats to the business itself.

   Topic: Audit & Assurance · medium

5. The management of Delta Co has disclosed a material uncertainty regarding its ability to continue as a going concern in the notes to the financial statements. The auditor has obtained sufficient appropriate audit evidence and agrees that a material uncertainty exists and that the disclosure is adequate. What is the appropriate audit opinion and report structure?

   • Qualified opinion with a Material Uncertainty Related to Going Concern section.
   • Unmodified opinion with an Emphasis of Matter paragraph.
   • Unmodified opinion with a Material Uncertainty Related to Going Concern section.
   • Adverse opinion with a basis for adverse opinion section.
   Show answer & explanation

   Answer: C. Unmodified opinion with a Material Uncertainty Related to Going Concern section.

   Under ISA 570, if the going concern assumption is appropriate but a material uncertainty exists and is adequately disclosed, the auditor issues an unmodified opinion and includes a separate section titled 'Material Uncertainty Related to Going Concern'.

   Topic: Audit & Assurance · medium

6. In accordance with corporate governance best practice (e.g., the UK Corporate Governance Code), what is the recommended composition of the audit committee for a large listed company?

   • At least three executive directors.
   • At least three independent non-executive directors.
   • A mix of executive and non-executive directors, chaired by the CEO.
   • Only non-executive directors, with a minimum of one executive director to provide operational context.
   Show answer & explanation

   Answer: B. At least three independent non-executive directors.

   Corporate governance principles require the audit committee of a listed company to consist entirely of independent non-executive directors (at least three for larger companies, and at least two for smaller companies).

   Topic: Audit & Assurance · easy

7. Which of the following statements best describes the concept of performance materiality as defined by ISA 320?

   • The maximum amount of misstatement the auditor can tolerate in a single transaction class without modifying the opinion.
   • An amount set by the auditor at less than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
   • The materiality level established for the audit of the company's operational performance metrics.
   • The percentage of revenue or profit before tax used to establish the overall materiality of the entity.
   Show answer & explanation

   Answer: B. An amount set by the auditor at less than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

   This is the exact definition of performance materiality provided in ISA 320 'Materiality in Planning and Performing an Audit'.

   Topic: Audit & Assurance · medium

8. Which of the following sources of audit evidence is generally considered to be the most reliable?

   • A verbal confirmation from the sales director regarding the recoverability of a debt.
   • A purchase invoice obtained from the client's scanning system.
   • A bank confirmation letter sent directly to the auditor by the client's bank.
   • A physical stock count sheet prepared and signed by the client's warehouse manager.
   Show answer & explanation

   Answer: C. A bank confirmation letter sent directly to the auditor by the client's bank.

   Audit evidence is more reliable when it is obtained from independent sources outside the entity and received directly by the auditor.

   Topic: Audit & Assurance · easy

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ACCA Exam Subjects

Available practice subjects: Financial Reporting, Audit & Assurance, Tax, Performance Management, Financial Management. Select a subject for focused preparation. Coverage is not a guarantee of the complete official syllabus.

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