IIA-ACCA Exam Practice Test Instant Access

Question 1

An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?

A26 days.

B90 days.

C100 days.

D110 days.

Answer : B

Question 2

During an audit of the organization's annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years. Which of the following is the most likely explanation for this increase?

ACost of raw material inventory items is decreasing.

BProcess to manufacture goods is more efficient.

CLabor productivity to produce goods is increasing.

DWrite-off of inventory is increasing.

Answer : A

Question 3

Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?

AReview the list of people with access badges to the room containing the workstation and a log of those who accessed the room.

BReview the password length, frequency of change, and list of users for the workstation's login process.

CReview the list of people who attempted to access the workstation and failed, as well as error messages.

DReview the passwords of those who attempted unsuccessfully to access the workstation and the log of their activity.

Answer : A

Question 4

The board has requested that the internal audit activity be involved in all phases of the organization's outsourcing of its network management. During which of the following stages is the internal auditor most likely to verify that the organization's right-to-audit clause is drafted effectively?

AImplementation and transition phase.

BMonitoring and reporting phase

CDecision-making and business-case phase.

DTendering and contracting phase.

Answer : D

Question 5

For employees, the primary value of implementing job enrichment is which of the following?

AValidation of the achievement of their goals and objectives.

BIncreased knowledge through the performance of additional tasks.

CSupport for personal growth and a meaningful work experience.

DAn increased opportunity to manage better the work done by their subordinates.

Answer : C

Question 6

Organization X owns a 38 percent equity stake in Organization Y. Which of the following statements is true regarding the financial treatment for this relationship?

AY should be listed as an investment asset on X's balance sheet

BX must consolidate the financial statements for both organizations

CY should be reported as a footnote to X's financial statements

DY should not be reported by X as X does not have a controlling interest

Answer : A

Question 7

A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

AFull cost

BFull cost plus a markup.

CMarket price of the product

DVariable cost plus a markup

Answer : C

IIA-ACCA ACCA CIA Challenge Exam Practice Test