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IIA IIA-ACCA - ACCA CIA Challenge Exam

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Total 604 questions

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

A.

Management will be able to reduce inherent risk because they will have a better understanding of risk.

B.

Internal auditors will be able to reduce their sample sizes because controls will be more consistent.

C.

Stakeholders will have more assurance that the risks are assessed consistently.

D.

Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

As a matter of policy, the chief audit executive routinely rotates internal audit staff assignments and periodically interviews the staff to discuss the potential for conflicts of interest. These actions help fulfill which of the following internal audit mandates?

A.

Organizational independence.

B.

Professional objectivity.

C.

Due professional care.

D.

Individual proficiency.

Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?

A.

Attribute theory.

B.

Path goal model

C.

Life cycle model

D.

Contingency theory

Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

A.

Increasing complexity over time.

B.

Interface with corporate systems.

C.

Ability to meet user needs.

D.

Hidden data columns or worksheets.

Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?

A.

The risk that users try to bypass controls and do not install required software updates.

B.

The risk that smart devices can be lost or stolen due to their mobile nature.

C.

The risk that an organization intrusively monitors personal information stored on smart devices.

D.

The risk that proprietary information is not deleted from the device when an employee leaves.

All of the following are possible explanations for a significant unfavorable material efficiency variance except:

A.

Cutbacks in preventive maintenance.

B.

An inadequately trained and supervised labor force.

C.

A large number of rush orders.

D.

Production of more units than planned for in the master budget.

Which of the following is useful for forecasting the required level of inventory?

1. Statistical modeling.

2. Information about seasonal variations in demand.

3. Knowledge of the behavior of different business cycles.

4. Pricing models linked to seasonal demand.

A.

1 and 2 only

B.

2 and 3 only

C.

1, 2, and 3 only

D.

1, 2, 3, and 4

According to MA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

A.

Report identifying data that is outside of system parameters

B.

Report identifying general ledger transactions by time and individual

C.

Report comparing processing results with original input

D.

Report confirming that the general ledger data was processed without error.

Which of the following phases of a business cycle are marked by an underuse of resources?

1. The trough.

2. The peak.

3. The recovery.

4. The recession.

A.

1 and 3 only

B.

1 and 4 only

C.

2 and 3 only

D.

2 and 4 only

Which of the following is an example of a physical security control that should be in place at an organization's data center?

A.

Backup servers in the data center are stored in an environmentally controlled location

B.

All users have a unique ID and password to access data

C.

Swipe cards are used to access the data center

D.

Firewalls and antivirus protection are in place to prevent unauthorized access to data.

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.

Product departmentalization.

B.

Process departmentalization.

C.

Functional departmentalization.

D.

Customer departmentalization.

Which of the following authentication controls combines what a user knows with the unique characteristics of the user respectively?

A.

Voice recognition and token.

B.

Password and fingerprint.

C.

Fingerprint and voice recognition

D.

Password and token

Which of the following is a key responsibility of a database administrator?

A.

Troubleshoot end user problems

B.

Provide production support.

C.

Provide physical security of databases

D.

Maintain database integrity

Which of the following stages of group development is associated with accepting team responsibilities?

A.

Forming stage.

B.

Performing stage.

C.

Norming stage.

D.

Storming stage.

Which is the least effective form of risk management?

A.

Systems-based preventive control.

B.

People-based preventive control.

C.

Systems-based detective control.

D.

People-based detective control.