Exam Questions and Answers for IIA-ACCA Study Guide Questions and Answers!
ACCA CIA Challenge Exam Certification Sample Questions and Practice Exam
NEW QUESTION 168
Which of the following best describes the four components of a balanced scorecard?
- A. Customers, support, critical success factors, and learning.
- B. Financial measures, learning and growth, customers, and internal processes.
- C. Customers, innovation, growth, and internal processes.
- D. Business objectives, critical success factors, innovation, and growth.
Answer: B
NEW QUESTION 169
Which of the following is an appropriate role for the internal audit activity with regard to the organization's risk management program?
- A. Attain an adequate understanding of the organization's key risk mitigation strategies.
- B. Identify and manage risks in line with the organization's risk appetite.
- C. Identify and ensure that appropriate controls exist to mitigate risks.
- D. Ensure that a proper and effective risk management process exists.
Answer: A
NEW QUESTION 170
According to MA guidance, which of the following would indicate poor change management control?
1. Low change success rate
2. Occasional planned outages
3. Low number of emergency changes.
4. Instances of unauthorized changes
- A. 1 and 3
- B. 2 and 3
- C. 2 and 4
- D. 1 and 4
Answer: D
NEW QUESTION 171
Which of the following standards would be most useful in evaluating the performance of a customer-service group?
- A. The average time per customer inquiry should be kept to a minimum.
- B. Employees should maintain a positive attitude when dealing with customers.
- C. All customer inquiries should be answered within seven days of receipt.
- D. Customer complaints should be processed promptly.
Answer: C
NEW QUESTION 172
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. Periodic internal assessments provide the most current and independent recommendations for improvement.
- C. The conclusions of periodic internal assessments are intended to assist in achieving conformity to the Standards.
- D. Members of the internal audit activity are not permitted to perform quality assessments, as they would not be independent.
Answer: C
NEW QUESTION 173
Which of the following types of social responsibilities is voluntary and guided purely by the organization's desire to make social contributions?
- A. Innovative responsibility.
- B. Ethical responsibility.
- C. The bottom of the pyramid responsibility.
- D. Discretionary responsibility.
Answer: B
NEW QUESTION 174
As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?
- A. Individual proficiency.
- B. Professional objectivity.
- C. Due professional care.
- D. Organizational independence.
Answer: B
NEW QUESTION 175
Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?
- A. The "Funds Needed" line will remain pointed upward, but will become more steep.
- B. The "Funds Needed" line will remain pointed upward, but will become less steep.
- C. The "Funds Needed" line will point downward with a minimal slope.
- D. The "Funds Needed" line will point downward with an extreme slope.
Answer: A
NEW QUESTION 176
Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of S3 per unit The market price of the product is S15 plus 20 percent selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for S18 Which of the following methods of transfer pricing is being used?
- A. Market price.
- B. Variable cost
- C. Full absorption cost
- D. Negotiation-based.
Answer: A
NEW QUESTION 177
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?
- A. Risk avoidance.
- B. Risk acceptance.
- C. Risk sharing.
- D. Risk reduction.
Answer: D
NEW QUESTION 178
Which of the following is an example of an application system control?
- A. Field amounts contain an upper or lower limit.
- B. Error listings are generated and promptly remediated.
- C. Data values fall within a prescribed range.
- D. Report distribution is restricted to authorized personnel.
Answer: C
NEW QUESTION 179
New environmental regulations require the board to certify that the organization's reported pollutant emissions data is accurate. The chief audit executive (CAE) is planning an audit to provide assurance over the organization's compliance with the environmental regulations. Which of the following groups or individuals is most important for the CAE to consult to determine the scope of the audit?
- A. The organization's insurance department.
- B. The organization's external environmental lawyers.
- C. The audit committee of the board.
- D. The environmental, health, and safety manager.
Answer: D
NEW QUESTION 180
Which of the following characteristics is most important specifically for a global manager to possess in order to be successful?
- A. Emotional intelligence
- B. Cultural intelligence
- C. Knowledge of different languages.
- D. Understanding of uncertainty avoidance differences
Answer: B
NEW QUESTION 181
Which of the following statements regarding program change management is not correct?
- A. All changes should be tested in a non-production environment before migrating to the production environment.
- B. In order to protect the production environment, changes must be managed in a repeatable, defined, and predictable manner.
- C. The goal of the change management process is to sustain and improve organizational operations.
- D. The degree of risk associated with a proposed change determines if the change request requires authorization.
Answer: D
NEW QUESTION 182
In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?
- A. It provides cost advantages, improves coordinated activities, and speeds product development.
- B. It is an effective strategy when large differences exist between countries.
- C. It uses the same products in all countries.
- D. It centralizes control with little decision-making authority given to the local level.
Answer: B
NEW QUESTION 183
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?
- A. Hire consultants who possess the required knowledge to perform the engagement.
- B. Select the most experienced auditors in the department to perform the engagement.
- C. Ask the audit committee to decide the course of action.
- D. Postpone the audit until the CAE hires internal audit staff with the required knowledge.
Answer: A
NEW QUESTION 184
A manufacturer is under contract to produce and deliver a number of aircraft to a major airline. As part of the contract, the manufacturer is also providing training to the airline's pilots. At the time of the audit, the delivery of the aircraft had fallen substantially behind schedule while the training had already been completed. If half of the aircraft under contract have been delivered, which of the following should the internal auditor expect to be accounted for in the general ledger?
- A. All completed training costs, and 50% of the contracted production costs.
- B. All completed training costs, and the cost of actual production hours completed to date.
- C. Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.
- D. Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.
Answer: A
NEW QUESTION 185
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. 1 and 2.
- B. 2 and 3.
- C. 3 and 4.
- D. 1 and 3.
Answer: D
NEW QUESTION 186
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?
- A. The audit supervisor should include the new contracts in the finding for the final audit report.
- B. The audit supervisor should communicate the finding to the supervisor of the sales manager through an interim report.
- C. The auditor should not reference the new contracts, because they are not yet signed and therefore cannot be included in the final report.
- D. The audit supervisor should remind the sales manager of his authority limit for the contracts under negotiation.
Answer: B
NEW QUESTION 187
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