IIA-ACCA Exam Practice Test Instant Access

Question 1

An organization's account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?

AA debit to office supplies on hand for S2.500

BA debit to office supplies on hand for $11,500

CA debit to office supplies on hand for S20.500

DA debit to office supplies on hand for S42.500

Answer : A

Question 2

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

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

BVerification of the completeness and integrity of the obtained data.

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

DCalculation of statistical parameters to identify outliers requiring further scrutiny.

Answer : B

Question 3

Which of the following factors is most responsible for the increasing risk that unauthorized parties may obtain or tamper with personal data?

AThe lack of legal and industry frameworks on privacy.

BThe absence of generally accepted privacy principles.

CThe rapid growth and evolution of technology.

DThe legislated need to retain sensitive personal information.

Answer : C

Question 4

The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas, and he decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?

1. Favorable labor efficiency variance.

2. Adverse labor rate variance.

3. Adverse labor efficiency variance.

4. Favorable labor rate variance.

A1 and 2.

B1 and 4.

C3 and 4.

D2 and 3.

Answer : A

Question 5

While reviewing the contracts for a large city, the internal auditor learns that the organization contracted to perform trash collection is paid based on the number of bins emptied each week As a result, the city has minimal control over payments Which of the following actions should the auditor recommend to give the city greater control over payments?

AChange the contract so payment is based on the distances traveled by the contractor during collection.

BRenegotiate a lump-sum contract when the contract is up for renewal

CAssign a city employee to verify the number of bins emptied each day

DRequire that the contractor provide supervisory review of the number of bins emptied each day

Answer : B

Question 6

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

AHot recovery plan

BWarm recovery plan

CCold recovery plan.

DAbsence of recovery plan

Answer : D

Question 7

A large hospital has an existing contract with a vendor in another country to provide software support and maintenance of the hospital's patient records information system. From the hospital management's perspective, which of the following controls would be most effective to address privacy risks related to this outsourcing arrangement^

AConduct periodic reviews of the privacy policy to ensure that the existing policy meets current legislation requirements in both regions.

BInclude a 'right to audit' clause in the contract and impose detailed security obligations on the outsourced vendor

CImplement mandatory privacy training for management to help with identifying privacy risks when outsourcing services

DDevelop an incident monitoring and response plan to track breaches from internal and external sources

Answer : A

IIA ACCA CIA Challenge Exam Practice Test