Certification Training for IIA-ACCA Exam Dumps Test Engine [2022]
Jan 17, 2022 Step by Step Guide to Prepare for IIA-ACCA Exam
NEW QUESTION 172
Click the Exhibit.
Internal auditors are asked to keep track of how many hours per day they spend planning the audit, conducting the engagement, and writing the audit report. The data for two days has been collected as follows:
Day 1
Day 2
Planning the audit
2 hours
3 hours
Conducting the engagement
1 hour
1 hour
Writing the audit report
2 hours
4 hours
Which of the following graphs depicts the data accurately?
- A. Both A and B.
- B. Graph A only
- C. Neither A nor B.
- D. Graph B only
Answer: A
NEW QUESTION 173
Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?
- A. Enhance the functionality of application systems.
- B. Promote closer linkage between organizational strategy and information.
- C. Expand the use of automated controls.
- D. Provide users with greater online access to information systems.
Answer: A
NEW QUESTION 174
Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?
- A. The key used to encrypt the data is kept private but the key used to decrypt the data is made public.
- B. The key used to encrypt the data is made public but the key used to decrypt the data is kept private.
- C. Both the key used to encrypt the data and the key used to decrypt the data are made private.
- D. Both the key used to encrypt the data and the key used to decrypt the data are made public.
Answer: B
NEW QUESTION 175
A large trucking organization wants to reduce traffic accidents by improving its system of internal controls.
Which of the following controls is correctly classified?
1. Review of speeding violations to identify repetitive locations and drivers is an example of a preventive control.
2. Defensive driver training is an example of a directive control.
3. The installation of tracking devices in delivery vehicles is an example of a corrective control.
4. Providing a vehicle driver handbook is an example of a detective control.
- A. 2 and 3.
- B. 3 and 4.
- C. 1 and 2.
- D. 1 and 4.
Answer: C
NEW QUESTION 176
A global business organization is selecting managers to post to various international (expatriate) assignments.
In the screening process, which of the following traits would be required to make a manager a successful expatriate?
1. Superior technical competence.
2. Willingness to attempt to communicate in a foreign language.
3. Ability to empathize with other people.
- A. 2 and 3 only
- B. 1, 2, and 3
- C. 1 and 3 only
- D. 1 and 2 only
Answer: A
NEW QUESTION 177
According to IIA guidance, which of the following statements best justifies a chief audit executive's request for external consultants to complement internal audit activity (IAA) resources?
- A. The organization's audit universe is extensive and diverse.
- B. A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.
- C. Previous work provided by the external service provider has been of great quality and value.
- D. There has been an increase in unanticipated requests for advisory work.
Answer: D
NEW QUESTION 178
During an assurance engagement, an internal auditor noted that the time staff spent accessing customer information in large Excel spreadsheets could be reduced significantly through the use of macros. The auditor would like to train staff on how to use the macros. Which of the following is the most appropriate course of action for the internal auditor to take?
- A. The auditor should get permission to extend the current engagement, and with the process owner's approval, perform the improvement task.
- B. The auditor must not perform the training, because any task to improve the business process could impact audit independence.
- C. The auditor may proceed with the improvement task without obtaining formal approval, because the task is voluntary and not time-intensive.
- D. The auditor must create a new, separate consulting engagement with the business process owner prior to performing the improvement task.
Answer: A
NEW QUESTION 179
Which of the following statements about COBIT is not true?
- A. COBIT helps management understand and manage the risks associated with information technology (IT) processes.
- B. Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.
- C. COBIT control objectives are specific to various IT platforms and help determine minimum controls.
- D. COBIT provides management with the capability to conduct self-assessments against industry best practices.
Answer: C
NEW QUESTION 180
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. Training costs allocated to the number of aircraft delivered, and 50% of contracted production costs.
- C. All completed training costs, and the cost of actual production hours completed to date.
- D. Training costs allocated to the number of aircraft delivered, and the cost of actual production hours completed to date.
Answer: A
NEW QUESTION 181
Evidence discovered during the course of an engagement suggests that multiple incidents of fraud have occurred. There do not appear to be sufficient controls in place to prevent reoccurrence. Which of the following is the internal auditor's most appropriate next step?
- A. Immediately notify management of the area under review and the other internal auditors involved in the engagement.
- B. Provide the evidence that was discovered to local law enforcement for possible prosecution of the suspected fraud.
- C. Discuss the situation with the engagement supervisor to determine whether fraud investigation experts are required to investigate the matter properly.
- D. Fully document in the workpapers the evidence that has been discovered and recommend appropriate controls to address the fraud.
Answer: A
NEW QUESTION 182
Which of the following distinguishes the added-value negotiation method from traditional negotiating methods?
- A. Each negotiator starts with an offer, which is optimal from the negotiator's perspective.
- B. Each party adopts one initial position from which to start.
- C. Each party's negotiator presents a menu of options to the other party.
- D. Each negotiator minimizes the information provided to the other party.
Answer: C
NEW QUESTION 183
An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?
- A. 7 percent simple interest paid at the end of each year.
- B. 7 percent discount interest.
- C. 7 percent compounding interest.
- D. 7 percent simple interest with a 10 percent compensating balance.
Answer: A
NEW QUESTION 184
Which of the following describes a key characteristic related to effective organizational communication?
- A. Unique operating environments with varying complexity.
- B. A culture of integrity and transparency.
- C. Comprehensive supervisory and verification procedures.
- D. A well-designed system of internal controls.
Answer: D
NEW QUESTION 185
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 ensure that appropriate controls exist to mitigate risks.
- C. Ensure that a proper and effective risk management process exists.
- D. Identify and manage risks in line with the organization's risk appetite.
Answer: A
NEW QUESTION 186
A key advantage of developing a computer application by using the prototyping approach is that it:
- A. Better involves users in the design process.
- B. Does not require testing for user acceptance.
- C. Allows applications to be portable across multiple system platforms.
- D. Is less expensive since it is self-documenting.
Answer: A
NEW QUESTION 187
Which of the following types of fraud includes embezzlement?
- A. Bribery.
- B. Misappropriation of assets.
- C. Fraudulent statements.
- D. Corruption.
Answer: B
NEW QUESTION 188
According to IIA guidance, which of the following must internal auditors consider to conform with the requirements for due professional care during a consulting engagement?
1. The cost of the engagement, as it pertains to audit time and expenses in relation to the potential benefits.
2. The needs and expectation of clients, including the nature, timing, and communication of engagement results.
3. The application of technology-based audit and other data analysis techniques, where appropriate.
4. The relative complexity and extent of work needed to achieve the engagement's objectives.
- A. 1, 3, and 4
- B. 2, 3, and 4
- C. 1, 2, and 3
- D. 1, 2, and 4
Answer: D
NEW QUESTION 189
Which of the following is an example of an application control?
- A. Automated password change requirements
- B. User testing of system changes
- C. Formatted data fields
- D. System data backup process
Answer: C
NEW QUESTION 190
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
- A. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
- B. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
- C. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
- D. 50 percent of total organizational cost has been allocated on a volume basis.
Answer: D
NEW QUESTION 191
Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?
- A. A multinational company uses raw materials and components from more than one country.
- B. A multinational company has stockholders in other countries.
- C. A multinational company operates outside of its country of origin.
- D. A multinational company exports its products to other countries.
Answer: C
NEW QUESTION 192
Which of the following documents is most appropriate in promoting the objectivity of the internal audit activity?
- A. Personal responsibility policy.
- B. Usage of IT system policy.
- C. Acceptance of gifts policy.
- D. Risk management framework.
Answer: C
NEW QUESTION 193
It is close to the fiscal year end for a government agency, and the chief audit executive (CAE) has the following items to submit to either the board or the chief executive officer (CEO) for approval. According to IIA guidance, which of the following items should be submitted only to the CEO?
- A. The internal audit budget and resource plan for the coming fiscal year.
- B. The internal audit risk assessment and audit plan for the next fiscal year.
- C. A request for an increase of the CAE's salary for the next fiscal year.
- D. The evaluation and compensation of the internal audit team.
Answer: D
NEW QUESTION 194
A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?
- A. Appoint the CAE as a member of the board.
- B. Obtain full board approval of the internal audit activity's annual audit plan.
- C. Move the CAE's functional reporting to the audit committee.
- D. Move the CAE's functional reporting to an executive who is not on the board.
Answer: C
NEW QUESTION 195
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