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Free IIA IIA-ACCA Practice Exam with Questions & Answers | Set: 11

Questions 151

Which of the following are generally recognized as essential elements of a corporate social responsibility program?

Options:
A.

Human rights and the environment.

B.

Organizational governance and financial reporting.

C.

Fair operating practices and government regulation.

D.

Consumer issues and return on investment.

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Questions 152

An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

Options:
A.

Preventive controls.

B.

Detective controls.

C.

Soft controls.

D.

Directive controls.

Questions 153

An auditor identifies three errors in the sample of 25 entries selected for review (a 12 percent error rate). Based on this result, the auditor assumes that approximately 59 of the total population of 492 entries are incorrect. To reach this assumption, the auditor has used a technique known as which of the following?

Options:
A.

Variability tolerance.

B.

Ratio estimation.

C.

Stratification.

D.

Acceptance sampling.

Questions 154

Which of the following statements describes impairment to the internal auditor's objectivity?

Options:
A.

An internal auditor reviews a purchasing agent's contract drafts prior to their execution.

B.

An internal auditor reduces the scope of an audit engagement due to budget restrictions.

C.

An internal auditor receives a promotional gift that is available to the organization's employees.

D.

An internal auditor performs an assessment of the operations for which he was recently responsible.

Questions 155

Which of the following best ensures the independence of the internal audit activity?

1. The CEO and audit committee review and endorse any changes to the approved audit plan on an annual basis.

2. The audit committee reviews the performance of the chief audit executive (CAE) periodically.

3. The internal audit charter requires the CAE to report functionally to the audit committee.

Options:
A.

3 only

B.

1 and 2 only

C.

2 and 3 only

D.

1, 2, and 3

Questions 156

Which of the following is an example of a detective control?

Options:
A.

Automatic shut-off valve.

B.

Auto-correct software functionality.

C.

Confirmation with suppliers and vendors.

D.

Safety instructions.

Questions 157

According to the COSO enterprise risk management (ERM) framework, which of the following is not part of the new paradigm in ERM?

Options:
A.

Assessing the risk factors.

B.

Aligning risk appetite and strategy.

C.

Enhancing risk response decisions.

D.

Reducing operational surprises and losses.

Questions 158

A chief audit executive (CAE) is reviewing the internal audit activity's performance and is concerned that the average number of revisions to findings is steadily rising, making it increasingly difficult to trace the finding to the supporting evidence and workpapers. According to MA guidance, which of the following elements of the internal audit activity's quality assurance and improvement program would provide the CAE with the most helpful insight into the cause of this problem?

Options:
A.

The overall effectiveness of the internal audit activity's periodic self assessments.

B.

The type of audit productivity and performance statistics reported.

C.

The adequacy of the day-to-day supervision and review process.

D.

The scope and frequency of external assessments.

Questions 159

A multinational organization has asked the internal audit activity to assist in setting up the organization's risk management system. The chief audit executive (CAE) agrees to take on the engagement as a consultant. Which of the following tasks is appropriate for the CAE to undertake?

Options:
A.

Coordinate and facilitate risk workshops for management to attend.

B.

Establish the degree of risk appetite for management to accept.

C.

Set risk indicators and mitigation plans for management to implement.

D.

Determine the number of significant risks for management to report to the board.

Questions 160

A chief audit executive (CAE) is selecting an internal audit team to perform an audit engagement that requires a high level of knowledge in the areas of finance, investment portfolio management, and taxation. If neither the CAE nor the existing internal audit staff possess the required knowledge, which of the following actions should the CAE take?

Options:
A.

Postpone the audit until the CAE hires internal audit staff with the required knowledge.

B.

Ask the audit committee to decide the course of action.

C.

Select the most experienced auditors in the department to perform the engagement.

D.

Hire consultants who possess the required knowledge to perform the engagement.

Questions 161

Which of the following is the most common method of fraud detection?

Options:
A.

Analytical reviews of high-risk areas.

B.

Detective controls built into the daily processes.

C.

Unannounced audits or reviews of programs or departments.

D.

Tips received from employees or citizens.

Questions 162

Which of the following is the primary engagement responsibility of an entry-level internal auditor?

Options:
A.

Leadership.

B.

Documentation.

C.

Analysis.

D.

Reporting.

Questions 163

A credit card company detects potential errors in credit card numbers by checking whether all entered numbers contain the correct amount of digits. This is an example of which of the following IT controls?

Options:
A.

Logic test.

B.

Check digits.

C.

Data integrity tests.

D.

Balancing control activities.

Questions 164

Which of the following is considered a violation of The IIA's Code of Ethics?

Options:
A.

An auditor conveys public information about an organization's financial condition.

B.

An auditor reports a manager's illegal activity to senior management, rather than reporting the incident to the appropriate external authority.

C.

An auditor receives allegations of fraud from a whistleblower and immediately reports the allegations to senior management.

D.

An auditor reports material deficiencies, despite the fact that management is already aware of the defects.

Questions 165

According to The IIA's Code of Ethics, which of the following is true?

Options:
A.

Confidentiality requires that auditors disclose all material facts known to them.

B.

Integrity requires that auditors perform internal audit services in accordance with the Standards.

C.

Objectivity requires that auditors perform their work with honesty, diligence, and responsibility.

D.

Confidentiality requires that auditors be prudent in the use and protection of client information.

Exam Code: IIA-ACCA
Certification Provider: IIA
Exam Name: ACCA CIA Challenge Exam
Last Update: Jul 10, 2025
Questions: 604

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