Pass Your Exam Easily! IIA-ACCA Real Question Answers Updated on Oct 24, 2022
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NEW QUESTION 301
According to the HA Code of Ethics, which of the following statements best describes the principle of competency?
- A. Internal auditors shall be prudent in the use of information acquired while performing their work.
- B. Internal auditors shall perform their work in accordance with the Standards.
- C. Internal auditors shall perform their work with honesty, diligence, and responsibility.
- D. Internal auditors shall perform their work in accordance with the law and make disclosures expected by the law.
Answer: B
NEW QUESTION 302
Which of the following is an example of an application system control?
- A. Data values fall within a prescribed range.
- B. Error listings are generated and promptly remediated.
- C. Field amounts contain an upper or lower limit.
- D. Report distribution is restricted to authorized personnel.
Answer: A
NEW QUESTION 303
Which of the following financial instruments should be recorded at fair market value on the financial statements?
- A. Notes receivable in the short term
- B. Accounts receivable in the short term
- C. Bonds to be held for sale in the short term.
- D. Bonds to be held to maturity.
Answer: C
NEW QUESTION 304
Due to price risk from the foreign currency purchase of aviation fuel, an airliner has purchased forward contracts to hedge against fluctuations in the exchange rate. When recalculating the exchange losses from individual purchases of jet fuel, which of the following details does the internal auditor need to validate?
1. The hedge documentation designating the hedge.
2. The spot exchange rate on the transaction date.
3. The terms of the forward contract.
4. The amount of fuel purchased.
- A. 1 and 4
- B. 2 and 3
- C. 3 and 4
- D. 1 and 2
Answer: B
NEW QUESTION 305
According to the COSO internal control framework, which of the following best describes the use of continuous auditing programs by the internal audit activity?
- A. Control environment.
- B. Monitoring.
- C. Control activities.
- D. Risk assessment.
Answer: B
NEW QUESTION 306
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
- A. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
- B. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
- C. 50 percent of total organizational cost has been allocated on a volume basis.
- D. 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.
Answer: C
NEW QUESTION 307
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 compounding interest.
- B. 7 percent simple interest paid at the end of each year.
- C. 7 percent simple interest with a 10 percent compensating balance.
- D. 7 percent discount interest.
Answer: B
NEW QUESTION 308
Which of the following is not a primary purpose for conducting a walk-through during the initial stages of an assurance engagement?
- A. To determine segregation of duties.
- B. To identify residual risks.
- C. To help develop process maps.
- D. To test the adequacy of controls.
Answer: D
NEW QUESTION 309
When auditing an application change control process, which of the following procedures should be included in the scope of the audit?
1. Ensure system change requests are formally initiated, documented, and approved.
2. Ensure processes are in place to prevent emergency changes from taking place.
3. Ensure changes are adequately tested before being placed into the production environment.
4. Evaluate whether the procedures for program change management are adequate.
- A. 2 and 4 only
- B. 1 and 3 only
- C. 1 only
- D. 1, 3, and 4 only
Answer: D
NEW QUESTION 310
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. Neither A nor B.
- B. Graph B only
- C. Graph A only
- D. Both A and B.
Answer: D
NEW QUESTION 311
Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?
- A. Collaboration during contract negotiation encourages stakeholders to develop consensus but typically increases cycle times and the likelihood that the contract will fail
- B. A contract is a tool used by both suppliers and customers though it offers commercial assurance of the relationship, purely from a customer perspective
- C. Differing legal requirements affect the attitudes of contracting parties as well as the length content and language of contracts
- D. A contract is a tool used by both suppliers and customers, the model and complexity of which generally remains constant
Answer: C
NEW QUESTION 312
According to IIA guidance, which of the following are appropriate actions for the chief audit executive regarding management's response to audit recommendations?
- A. Evaluate and verify management's response, and establish timelines for corrective action by management.
- B. Oversee the corrective actions undertaken by management, and establish timelines for corrective action by management.
- C. Evaluate and verify management's response, and determine the need and scope for additional work.
- D. Oversee the corrective actions undertaken by management, and determine the need and scope for additional work.
Answer: C
NEW QUESTION 313
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. A recent benchmarking study found that using external service providers is a common practice of similarly-sized IAAs in other organizations.
- B. There has been an increase in unanticipated requests for advisory work.
- C. The organization's audit universe is extensive and diverse.
- D. Previous work provided by the external service provider has been of great quality and value.
Answer: B
NEW QUESTION 314
According to IIA guidance, which of the following must the internal auditor consider to meet the requirements for due professional care?
- A. The use of innovative technology and data analysis techniques.
- B. The extent of work needed to achieve the engagement's objectives.
- C. The training courses necessary to enhance the internal auditor's knowledge, skills, and other competencies.
- D. The appropriateness of assurance procedures necessary to ensure all significant risks will be identified.
Answer: B
NEW QUESTION 315
Which of the following enhances the independence of the internal audit activity?
- A. The CAE administratively reports to the board.
- B. The chief audit executive (CAE) approves the annual internal audit plan.
- C. The audit committee approves the CAE's annual salary increase.
- D. The chief executive officer approves the internal audit charter.
Answer: C
NEW QUESTION 316
A manufacturing line supervisor joins the internal audit activity for a two-year rotational job assignment and is assigned to an accounts receivable audit. With regard to this assignment, which of the following should be the primary concern of the audit manager?
- A. Organizational independence.
- B. Individual objectivity.
- C. Individual independence.
- D. Due professional care.
Answer: D
NEW QUESTION 317
Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?
- A. End-user involvement.
- B. Formalized non-regression testing phase.
- C. Use of a formal systems development lifecycle.
- D. Adequate software documentation.
Answer: A
NEW QUESTION 318
Which of the following is a limiting factor for capacity expansion?
- A. Production orientation of management.
- B. Government pressure on organizations to increase or maintain employment.
- C. Company diversification.
- D. Lack of credible market leader in the industry.
Answer: C
NEW QUESTION 319
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 less steep.
- B. The "Funds Needed" line will remain pointed upward, but will become more 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: B
NEW QUESTION 320
If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?
- A. Process departmentalization.
- B. Functional departmentalization.
- C. Product departmentalization.
- D. Customer departmentalization.
Answer: D
NEW QUESTION 321
Which stage in the industry life cycle is characterized by many different product variations?
- A. Introduction.
- B. Decline.
- C. Maturity.
- D. Growth.
Answer: A
NEW QUESTION 322
A headquarters-based internal auditor has been sent to a major overseas subsidiary to conduct various engagements. Initially, the internal auditor spends time to become familiar with local customs and organization's practices while embarking on the first engagement. Which of the following competencies does the internal auditor exercise?
- A. Business acumen.
- B. Communication.
- C. Governance, risk, and control.
- D. Persuasion and collaboration.
Answer: B
NEW QUESTION 323
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