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IIA IIA-ACCA - ACCA CIA Challenge Exam

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Page: 11 / 13
Total 604 questions

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.

Both the key used to encrypt the data and the key used to decrypt the data are made public.

B.

The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

C.

The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

D.

Both the key used to encrypt the data and the key used to decrypt the data are made private.

If a just-in-time purchasing system is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?

A.

1

B.

2

C.

3

D.

4

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.

Customer complaints should be processed promptly.

C.

Employees should maintain a positive attitude when dealing with customers.

D.

All customer inquiries should be answered within seven days of receipt.

Which of the following statements is true regarding cost-volume-profit analysis?

A.

Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.

B.

Breakeven point is the amount of units sold to cover variable costs.

C.

Breakeven occurs when the contribution margin covers fixed costs

D.

Following breakeven, net operating income will increase by the excess of fixed costs less the variable costs per units sold

Which of the following is a characteristic of just-in-time inventory management systems?

A.

Users determine the optimal level of safety stocks.

B.

They are applicable only to large organizations.

C.

They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.

D.

They rely heavily on high quality materials.

An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?

A.

Develop and test the organization's disaster recovery plan.

B.

Install and test fire detection and suppression equipment.

C.

Restrict access to tangible IT resources.

D.

Ensure that at least one developer has access to both systems and operations.

Which of the following principles is shared by both hierarchical and open organizational structures?

1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions

2. A supervisor's span of control should not exceed seven subordinates

3. Responsibility should be accompanied by adequate authority

4. Employees at all levels should be empowered to make decisions.

A.

1 and 3 only.

B.

1 and 4 only.

C.

2 and 3 only

D.

3 and 4 only.

In mergers and acquisitions, which of the following is an example of a horizontal combination?

A.

Dairy manufacturing company taking over a large dairy farm.

B.

A movie producer acquires movie theaters.

C.

A petroleum processing company acquires an agro-processing firm.

D.

A baker taking over a competitor.

Organization X owns a 38 percent equity stake in Organization Y. Which of the following statements is true regarding the financial treatment for this relationship?

A.

Y should be listed as an investment asset on X's balance sheet

B.

X must consolidate the financial statements for both organizations

C.

Y should be reported as a footnote to X's financial statements

D.

Y should not be reported by X as X does not have a controlling interest

For an engineering department with a total quality management program, important elements of quality management include all of the following except:

A.

Basing performance evaluations on the number of projects completed.

B.

Comparing results with those of other engineering departments.

C.

Creating a quality council within the engineering department.

D.

Conducting post-project surveys on performance.

When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?

A.

Review and acquire the external audit service.

B.

Assess the appraisal and actuarial services.

C.

Determine the selection criteria.

D.

Identify regulatory requirements to be considered.

According to MA guidance on IT which of the following best describes a but recovery and restore processes have not been defined?

A.

Hot recovery plan

B.

Warm recovery plan

C.

Cold recovery plan.

D.

Absence of recovery plan

Which of the following best describes the purpose of disaster recovery planning?

A.

To reconstitute systems efficiently following a disruptive event.

B.

To define rules on how devices within the system should communicate after a disaster.

C.

To describe how data should move from one system to another system in case of an emergency.

D.

To establish a protected area of network that is accessible to the public after a disaster

According to IIA guidance, which of the following is the correct order to conduct a business impact analysis (BIA) for the potential loss of an organization's network services''

1. identify resources and partners to provide required recovery services

2. Identify the business processes supporting the network functionality

3. Obtain approval of the BIA from the operating managers relative to their areas of responsibility

4. Identify the business impact if the network services cannot be performed

A.

1, 2, 3, 4

B.

2, 1, 4, 3

C.

2, 4, 1, 3

D.

4, 2, 1, 3

When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

A.

Direct product costs

B.

Indirect product costs

C.

Direct period costs

D.

Indirect period costs.