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Free IIA IIA-ACCA Practice Exam with Questions & Answers | Set: 7

Questions 91

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.

Options:
A.

1 and 2.

B.

1 and 4.

C.

3 and 4.

D.

2 and 3.

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Questions 92

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:

Options:
A.

Better internal controls.

B.

Greater economies of scale.

C.

Improved work flow.

D.

Increased specialization.

Questions 93

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?

Options:
A.

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

B.

Adopt 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.

C.

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

D.

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

Questions 94

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?

Options:
A.

A debit to office supplies on hand for S2.500

B.

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

C.

A debit to office supplies on hand for S20.500

D.

A debit to office supplies on hand for S42.500

Questions 95

According to the COSO enterprise risk management (ERM) framework, which of the following is not a typical responsibility of the chief risk officer?

Options:
A.

Establishing risk category definitions and a common risk language for likelihood and impact measures.

B.

Defining ERM roles and responsibilities.

C.

Providing the board with an independent, objective risk perspective on financial reporting.

D.

Guiding integration of ERM with other management activities.

Questions 96

Data encryption is an example of which of the following controls?

Options:
A.

Application control.

B.

IT general control

C.

Data input control

D.

Data output control

Questions 97

According to IIA guidance on IT auditing, which of the following would not be an area examined by the internal audit activity?

Options:
A.

Access system security.

B.

Policy development.

C.

Change management.

D.

Operations processes.

Questions 98

Which of the following IT-related activities is most commonly performed by the second line of defense?

Options:
A.

Block unauthorized traffic.

B.

Encrypt data.

C.

Review disaster recovery test results.

D.

Provide independent assessment of IT security.

Questions 99

According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?

Options:
A.

Key processes across the entity which impact quality must be identified and included.

B.

The quality management system must be documented in the articles of incorporation, quality manual, procedures, work instructions, and records.

C.

Management must review the quality policy, analyze data about quality management system performance, and assess opportunities for improvement and the need for change.

D.

The entity must have processes for inspections, testing, measurement, analysis, and improvement.

Questions 100

One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:

Options:
A.

Program versions are synchronized across the network.

B.

Emergency move procedures are documented and followed.

C.

Appropriate users are involved in program change testing.

D.

Movement from the test library to the production library is controlled.

Questions 101

Which of the following statements about slack time and milestones are true?

1. Slack time represents the amount of time a task may be delayed without delaying the entire project.

2. A milestone is a moment in time that marks the completion of the project's major deliverables.

3. Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.

4. A milestone requires resource allocation and needs time to be completed.

Options:
A.

1 and 4 only

B.

2 and 3 only

C.

1, 2, and 3 only

D.

1, 2, 3, and 4

Questions 102

Which of the following IT controls includes protection for mainframe computers and workstations?

Options:
A.

Change management controls

B.

Physical and environmental controls.

C.

System software controls

D.

Organization and management controls

Questions 103

An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?

Options:
A.

Avoidance.

B.

Reduction.

C.

Elimination.

D.

Sharing.

Questions 104

Unsecured loans are loans:

Options:
A.

That do not have to be repaid for over one year.

B.

That appear to be too risky for most lenders to consider.

C.

Granted on the basis of a company's credit standing.

D.

Backed by mortgaged assets.

Questions 105

Which of the following local area network physical layouts is subject to the greatest risk of failure if one device fails?

Options:
A.

Star network.

B.

Bus network.

C.

Token ring network.

D.

Mesh network.