IIA-ACCA Exam Questions Instant Access - No Installation Required

Question 1

A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

ADevelop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.

BAdopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.

CInvolve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.

DDevelop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.

Answer : D

Question 2

At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?

APrior to testing the new application.

BDuring testing of the new application.

CDuring implementation of the new application.

DDuring maintenance of the new application.

Answer : A

Question 3

An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

AWorking conditions.

BEmployees' families.

CMarketplace competition.

DShareholders and investors.

Answer : B

Question 4

A chief audit executive (CAE) reports functionally to the CEO and administratively to the chief financial officer, both of whom serve on the company's board of directors. According to IIA guidance, which of the following would offer the greatest protection for the independence of the internal audit activity?

AAppoint the CAE as a member of the board.

BMove the CAE's functional reporting to an executive who is not on the board.

CObtain full board approval of the internal audit activity's annual audit plan.

DMove the CAE's functional reporting to the audit committee.

Answer : D

Question 5

An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:

ABetter internal controls.

BGreater economies of scale.

CImproved work flow.

DIncreased specialization.

Answer : C

Question 6

Which of the following statements is true regarding reversing entries in an accounting cycled

AReversing all previous closing adjustments is a mandatory step in the accounting cycle

BReversing entries should be completed at the end of the next accounting period after recording regular transactions of the period

CReversing entries are identical to the adjusting entries made in the previous period.

DReversing entries are the exact opposite of the adjustments made in the previous period.

Answer : D

Question 7

Management would like to self-assess the overall effectiveness of the controls in place for its 200-person manufacturing department. Which of the following client-facilitated approaches is likely to be the most efficient way to accomplish this objective?

AWorkshops.

BSurveys.

CInterviews.

DObservation.

Answer : B

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