Free ACCA CIA Challenge Exam IIA-ACCA Exam Practice Test

In which of the following scenarios would transfer pricing be used?

• Company A owns Company B; Company B sells goods to Company A.
• Company A does not own Company B. Company A charges Company B a fee to sell Company B's goods without taking ownership of the goods.
• Company A owns both Company B and Company C; all three companies sell goods to the public.
• Company A moves goods internally from one location to another.

Which of the following best describes a market signal?

• The bargaining power of buyers is forcing a drop in market prices.
• There is pressure from the competitor's substitute products.
• Strategic analysis by the organization indicates feasibility of expanding to new market niches.
• The competitor announces a new warranty program.

An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

• Hardware encryption.
• Software encryption
• Data encryption.
• Authentication.

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

• An internal auditor reviews a purchasing agent's contract drafts prior to their execution.
• An internal auditor reduces the scope of an audit engagement due to budget restrictions.
• An internal auditor receives a promotional gift that is available to the organization's employees.
• An internal auditor performs an assessment of the operations for which he was recently responsible.

Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?

• The risk that users try to bypass controls and do not install required software updates.
• The risk that smart devices can be lost or stolen due to their mobile nature.
• The risk that an organization intrusively monitors personal information stored on smart devices.
• The risk that proprietary information is not deleted from the device when an employee leaves.

Which of the following statements about market signaling is correct?1. The organization releases information about a new product generation.2. The organization limits a challenger's access to the best source of raw materials or labor.3. The organization announces that it is fighting a new process technology.4. The organization makes exclusive arrangements with the channels.

• 1 and 3 only
• 1 and 4 only
• 2 and 3 only
• 2 and 4 only

An organization is beginning to implement an enterprise risk management program. One of the first steps is to develop a common risk language. Which of the following statements about a common risk language is true?

• Management will be able to reduce inherent risk because they will have a better understanding of risk.
• Internal auditors will be able to reduce their sample sizes because controls will be more consistent.
• Stakeholders will have more assurance that the risks are assessed consistently.
• Decision makers will understand that the likelihood of missing or ineffective controls will be reduced.

An organization accomplishes its goal to obtain a 40 percent share of the domestic market, but is unable to get the desired return on investment and output per hour of labor. Based on this information the organization is most likely focused on which of the following?

• Capital investment and not marketing
• Marketing and not capital investment.
• Efficiency and not input economy.
• Effectiveness and not efficiency.

According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?1. Consult on CSR program design and implementation.2. Serve as an advisor on CSR governance and risk management.3. Review third parties for contractual compliance with CSR terms.4. Identify and mitigate risks to help meet the CSR program objectives.

• 1, 2, and 3
• 1, 2, and 4
• 1, 3, and 4
• 2, 3, and 4

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:

• Better internal controls.
• Greater economies of scale.
• Improved work flow.
• Increased specialization.