[Jan-2022 Newly Released] Pass IIA-ACCA Exam - Real Questions & Answers
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NEW QUESTION 204
Multinational organizations generally spend more time and effort to identify and evaluate:
- A. External trends and events.
- B. Internal strengths and weaknesses.
- C. Internal risk factors.
- D. Break-even points.
Answer: A
NEW QUESTION 205
An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?
- A. Control activities.
- B. Risk assessment.
- C. Monitoring.
- D. Control environment.
Answer: D
NEW QUESTION 206
Organizational activities that complement each other and create a competitive advantage are called a:
- A. Joint venture.
- B. Strategic goal.
- C. Merger.
- D. Strategic fit.
Answer: D
NEW QUESTION 207
According to Porter, which of the following is associated with fragmented industries?
- A. Weak entrance barriers.
- B. Significant scale economies.
- C. Steep experience curve.
- D. Strong negotiation power with suppliers.
Answer: A
NEW QUESTION 208
The first stage in the development of a crisis management program is to:
- A. Create a crisis management team.
- B. Practice the response to a crisis.
- C. Conduct a risk analysis.
- D. Formulate contingency plans.
Answer: C
NEW QUESTION 209
Capacity overbuilding is most likely to occur when management is focused on which of the following?
- A. Diversification.
- B. Finance.
- C. Marketing.
- D. Production.
Answer: D
NEW QUESTION 210
Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?
- A. Original cost.
- B. Inspection.
- C. Vouching.
- D. Observation.
Answer: B
NEW QUESTION 211
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 centralizes control with little decision-making authority given to the local level.
- C. It uses the same products in all countries.
- D. It is an effective strategy when large differences exist between countries.
Answer: D
NEW QUESTION 212
The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas, and he decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?
1. Favorable labor efficiency variance.
2. Adverse labor rate variance.
3. Adverse labor efficiency variance.
4. Favorable labor rate variance.
- A. 1 and 4.
- B. 2 and 3.
- C. 1 and 2.
- D. 3 and 4.
Answer: C
NEW QUESTION 213
An organization has recorded the following profit and expenses:
Profit before interest and tax
$200,000
Sales
$2,300,000
Purchases of materials
$700,000
Interest expenses
$30,000
If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?
- A. $51,000
- B. $34,000
- C. $60,000
- D. $320,000
Answer: D
NEW QUESTION 214
Which of the following is an example of a physical security control that should be in place at an organization's data center?
- A. All users have a unique ID and password to access data
- B. Swipe cards are used to access the data center
- C. Backup servers in the data center are stored in an environmentally controlled location
- D. Firewalls and antivirus protection are in place to prevent unauthorized access to data.
Answer: B
NEW QUESTION 215
According to IIA guidance, which of the following statements is true regarding analytical procedures?
- A. Data relationships are assumed to exist and to continue where no known conflicting conditions exist.
- B. Analytical procedures are intended primarily to ensure the accuracy of the information being examined.
- C. Data relationships cannot include comparisons between operational and statistical data
- D. Analytical procedures can be used to identify unexpected differences but cannot be used to identify the absence of differences
Answer: A
NEW QUESTION 216
All of the following are true with regard to the first-in, first-out inventory valuation method except:
- A. It minimizes current-period income taxes.
- B. It approximates the physical flow of goods.
- C. It generates the highest profit when prices are rising.
- D. It values inventory close to current replacement cost.
Answer: A
NEW QUESTION 217
A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?
- A. Control activities.
- B. Information and communication.
- C. Commitment.
- D. Control environment.
Answer: D
NEW QUESTION 218
An auditor in charge was reviewing the workpapers submitted by a newly hired internal auditor. She noted that the new auditor's analytical work did not include any rating or quantification of the risk assessment results, and she returned the workpapers for correction. Which section of the workpapers will the new auditor need to modify?
- A. Effect section.
- B. Cause section.
- C. Criteria section.
- D. Condition section.
Answer: A
NEW QUESTION 219
Which of the following responsibilities would fall under the role of the chief audit executive, rather than internal audit staff or the audit manager?
- A. Set clear performance standards for internal auditors and the internal audit activity.
- B. Apply problem-solving techniques for routine situations.
- C. Manage and support a quality assurance and improvement program.
- D. Maintain industry-specific knowledge appropriate to the audit engagements
Answer: A
NEW QUESTION 220
Which of the following statements about internal audit's follow-up process is true?
- A. Internal auditors have responsibility for determining if management and the board have implemented the recommended action or otherwise accepted the risk.
- B. The nature, timing, and extent of follow-up for assurance engagements is standardized to ensure quality performance.
- C. The follow-up process must be complete and documented in the working papers in order to conclude the engagement.
- D. The actions of external auditors and other external assurance providers is not encompassed by internal audit's follow-up process.
Answer: A
NEW QUESTION 221
According to IIA guidance, which of the following are the most important objectives for helping to ensure the appropriate completion of an engagement?
1. Coordinate audit team members to ensure the efficient execution of all engagement procedures.
2. Confirm engagement workpapers properly support the observations, recommendations, and conclusions.
3. Provide structured learning opportunities for engagement auditors when possible.
4. Ensure engagement objectives are reviewed for satisfactory achievement and are documented properly.
- A. 2, 3, and 4
- B. 1, 2, and 3
- C. 1, 2, and 4
- D. 1, 3, and 4
Answer: C
NEW QUESTION 222
A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:
- A. Adequate segregation of duties between data processing controls and file security controls.
- B. Emergency and disaster recovery procedures and maintenance agreements in place to ensure continuity of operations.
- C. Documented procedures for remote job entry and for local data file retention.
- D. Established procedures to prevent and detect unauthorized changes to data files.
Answer: C
NEW QUESTION 223
Which of the following best describes the misdirection of payments on accounts receivable to an employee's bank account?
- A. Fraud open on the books.
- B. Fraud hidden on the books.
- C. Fraud off the books.
- D. Fraud on the balance sheet.
Answer: C
NEW QUESTION 224
Which of the following factors should be considered when determining the appropriate combination of manual techniques and computer-assisted audit techniques (CAATs) to be used during an audit?
1. Acceptance of CAATs findings by entity management.
2. Computer knowledge and expertise of the auditor.
3. Time constraints.
4. Level of audit risk.
- A. 1 and 4
- B. 1, 2, and 3
- C. 2 and 3 only
- D. 2, 3, and 4
Answer: D
NEW QUESTION 225
When attempting to devise creative solutions to problems, team members initially should do which of the following?
- A. Weight suggestions based on the speaker's level of authority.
- B. Discuss the details of all options presented
- C. Provide documentation to support their positions
- D. Suspend assumptions and negative feedback
Answer: B
NEW QUESTION 226
One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:
- A. Appropriate users are involved in program change testing.
- B. Movement from the test library to the production library is controlled.
- C. Program versions are synchronized across the network.
- D. Emergency move procedures are documented and followed.
Answer: C
NEW QUESTION 227
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