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IIA-ACCA Practice Questions

ACCA CIA Challenge Exam

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Question # 11

An internal auditor is evaluating techniques management uses to mitigate risks within a particular product division. Which of the following is an example of risk reduction?

Options:

A.  

Management sells the product division to a competitor.

B.  

Management outsources the product division to a third party.

C.  

Management allows the product division to remain unchanged.

D.  

Management modifies the product division to minimize errors.

Discussion 0
Question # 12

Which of the following is most likely to enhance an internal auditor's objectivity?

Options:

A.  

An auditor is appropriately able to communicate results.

B.  

An auditor performs his work free from interference.

C.  

An auditor is unrestricted in determination of scope.

D.  

An auditor avoids conflicts of interest.

Discussion 0
Question # 13

Which of the following is the best way to detect fraud?

Options:

A.  

Conduct anti-fraud training.

B.  

Perform background investigations.

C.  

Implement process controls.

D.  

Activate a whistleblower hotline.

Discussion 0
Question # 14

Non-statistical sampling does not require which of the following?

Options:

A.  

The sample to be representative of the population.

B.  

The sample to be selected haphazardly.

C.  

A smaller sample size than if selected using statistical sampling.

D.  

Projecting the results to the population.

Discussion 0
Question # 15

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?

Options:

A.  

Communication.

B.  

Persuasion and collaboration.

C.  

Business acumen.

D.  

Governance, risk, and control.

Discussion 0
Question # 16

Click the Exhibit.

Question # 16

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?

Options:

A.  

Graph A only

B.  

Graph B only

C.  

Both A and

B.  

D.  

Neither A nor

B.  

Discussion 0
Question # 17

A large sales organization maintains a system of internal control according to the COSO model and has updated its code of conduct. This change relates to which component of the COSO framework?

Options:

A.  

Control activities.

B.  

Information and communication.

C.  

Commitment.

D.  

Control environment.

Discussion 0
Question # 18

An internal auditor is performing analytical reviews as part of an audit of a supermarket's merchandising department. Because the economy has declined since midyear, the auditor can expect to encounter which of the following?

Options:

A.  

Higher inventory turnover.

B.  

Higher operating margin.

C.  

Lower obsolete stock disposal.

D.  

Lower sales volume.

Discussion 0
Question # 19

Which of the following is an example of a management control technique?

Options:

A.  

A budget.

B.  

A risk assessment.

C.  

The board of directors.

D.  

The control environment.

Discussion 0
Question # 20

According to IIA guidance, which of the following statements is true when an internal auditor performs consulting services that improve an organization's operations?

Options:

A.  

The services must be aligned with those defined in the internal audit charter.

B.  

The services must not be performed by the same internal auditor who performed assurance services, in order to maintain objectivity.

C.  

The services may preclude assurance services from the consulting engagement.

D.  

The services impose no responsibility to communicate information other than to the engagement client.

Discussion 0
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