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IIA IIA-ACCA - ACCA CIA Challenge Exam

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Page: 10 / 13
Total 604 questions

According to IIA guidance, which of the following would be the best first step to manage risk when a third party is overseeing the organization's network and data?

A.

Creating a comprehensive reporting system for vendors to demonstrate their ongoing due diligence in network operations

B.

Drafting a strong contract that requires regular vendor control reports and a right-to-audit clause.

C.

Applying administrative privileges to ensure right-to-access controls are appropriate

D.

Creating a standing cybersecurity committee to identify and manage risks related to data security

Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

A.

Penetration test.

B.

Social engineering test.

C.

Vulnerability test.

D.

Physical control test.

Refer to the exhibit.

Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:

If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:

A.

$100

B.

$200

C.

$300

D.

$500

A software that translates hypertext markup language (HTML) documents and allows a user to view a remote web page is called:

A.

A transmission control protocol/Internet protocol (TCP/IP).

B.

An operating system.

C.

A web browser.

D.

A web server.

A capital investment project will have a higher net present value, everything else being equal, if it has:

A.

A higher initial investment level.

B.

A higher discount rate.

C.

Cash inflows that are larger in the later years of the life of the project.

D.

Cash inflows that are larger in the earlier years of the life of the project.

Which of the following are typical audit considerations for a review of authentication?

1. Authentication policies and evaluation of controls transactions.

2. Management of passwords, independent reconciliation, and audit trail.

3. Control self-assessment tools used by management.

4. Independent verification of data integrity and accuracy.

A.

1, 2, and 3

B.

1, 2, and 4

C.

1, 3, and 4

D.

2, 3, and 4

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?

1. It significantly raises compensation and staffing costs.

2. It produces resentment among the organization's employees in host countries.

3. It limits career mobility for parent-country nationals.

4. It can lead to cultural myopia.

A.

1 and 4 only

B.

2 and 3 only

C.

1, 2, and 3 only

D.

1, 2, and 4 only

Which of the following is true regarding an organization's relationship with external stakeholders?

A.

Specific guidance must be followed when interacting with nongovernmental organizations.

B.

Disclosure laws tend to be consistent from one jurisdiction to another.

C.

There are several internationally recognized standards for dealing with financial donors.

D.

Legal representation should be consulted before releasing internal audit information to other assurance providers.

An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?

A.

Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters.

B.

Orders, commands and advice are sent to the subsidiaries from headquarters.

C.

People of local nationality are developed for the best positions within their own country

D.

There is a significant amount of collaboration between headquarters and subsidiaries.

Which of the following is a limiting factor for capacity expansion?

A.

Government pressure on organizations to increase or maintain employment.

B.

Production orientation of management.

C.

Lack of credible market leader in the industry.

D.

Company diversification.

Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:

A.

Motivation.

B.

Performance.

C.

Organizational structure.

D.

Communication.

An internal auditor is investigating a potential fraudulent activity. What is the first test the auditor should perform on the transaction data under scrutiny?

A.

Digital analysis for statistically unlikely occurrences that may indicate system tampering.

B.

Verification of the completeness and integrity of the obtained data.

C.

Detailed review of the data contents to strategize the best analytical techniques.

D.

Calculation of statistical parameters to identify outliers requiring further scrutiny.

Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

A.

The internal auditor may cite the use of other standards during audit communications.

B.

If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.

C.

If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.

D.

If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.

How do data analysis technologies affect internal audit testing?

A.

They improve the effectiveness of spot check testing techniques

B.

They allow greater insight into high risk areas.

C.

They reduce the overall scope of the audit engagement.

D.

They increase the internal auditor's objectivity

Organizations use matrix management to accomplish which of the following?

A.

To improve the chain of command.

B.

To strengthen corporate headquarters.

C.

To focus better on a single market.

D.

To increase lateral communication.