IIA-ACCA Exam Practice Test Instant Access

Question 1

Which of the following most accurately describes the purpose of application authentication controls?

ATo ensure that data input into business applications is valid, complete, and accurate.

BTo prevent or detect errors in data processed using business applications.

CTo ensure that business applications are protected from unauthorized logical access.

DTo ensure the validity, accuracy, and completeness of outputs from business applications.

Answer : C

Question 2

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 3

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 4

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 5

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 6

An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?

AThe capital accounts of the partners should be increased by the original cost of the contnbuted equipment.

BThe capital accounts should be increased using a weighted average based on the current percentage of ownership

CNo action is needed as the capital account of each partner was increased by the correct amount

DThe capital accounts of the partners should be increased by the fair market value of their contribution

Answer : C

Question 7

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

IIA ACCA CIA Challenge Exam Practice Test