Question 1

An organization's internal audit plan includes a recurring assurance review of the human resources (HR) department. Which of the following statements is true regarding preliminary communication between the auditor in charge (AIC) and the HR department?

1. The AIC should notify HR management when the draft audit plan is being developed, as a courtesy.

2. The AIC should notify HR management before the planning stage begins.

3. The AIC should schedule formal status meetings with HR management at the start of the engagement.

4. The AIC should finalize the scope of the engagement before communicating with HR management.

Options :

A : 1 and 3

B : 1 and 4

C : 2 and 3

D : 2 and 4

Answer: C

Question 2

While preparing for an audit of senior management expenses, the chief audit executive (CAE) learns that management is unable to locate a number of original expense claims to support the related disbursements. She decides to defer the engagement until they can be located. Which of the following principles likely guided the CAE's decision?

Options :

A : Objectivity.

B : Proficiency.

C : Independence.

D : Due professional care.

Answer: D

Question 3

An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

Options :

A : Lack of awareness of the state of processing.

B : Increased cost and complexity of network traffic.

C : Interference of the mirrored data with the original source data.

D : Confusion about where customer data are stored.

Answer: B

Question 4

Which of the following statements is true regarding reversing entries in an accounting cycled

Options :

A : Reversing all previous closing adjustments is a mandatory step in the accounting cycle

B : Reversing entries should be completed at the end of the next accounting period after recording regular transactions of the period

C : Reversing entries are identical to the adjusting entries made in the previous period.

D : Reversing entries are the exact opposite of the adjustments made in the previous period.

Answer: D

Question 5

Which of the following corporate social responsibility strategies is likely to be most effective in minimizing confrontations with influential activists and lobbyists?

Options :

A : Continually evaluate the needs and opinions of all stakeholder groups.

B : Ensure strict compliance with applicable laws and regulations to avoid incidents.

C : Maintain a comprehensive publicity campaign that highlights the organization-s efforts.

D : Increase goodwill through philanthropic activities among stakeholder communities.

Answer: A

Higher Test Marks with Free Online IIA-ACCA Exam Practice

Buying Options: