-ACCA Certification Exam Questions with AI Explanations

QUESTION: 86

A new internal audit activity is creating its first charter. According to IIA guidance, which of the following objectives would be appropriate for inclusion in the charter?

Continuously monitor the organization's overall risk activities in relation to its risk appetite.
Evaluate the adequacy and effectiveness of the organization's governance activities.
Oversee the establishment and administration of an effective risk management program.
Assist management in implementing recommended control improvements.

Answer(s): C

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QUESTION: 87

According to COSO, which of the following describes a principle related to the control environment?

The organization identifies and assesses changes that could significantly impact the system of internal control.
The organization establishes appropriate authorities and responsibilities in the pursuit of objectives.
The organization selects and develops control activities that contribute to the mitigation of risks.
The organization performs evaluations to ascertain whether internal control components are present and functioning.

Answer(s): B

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QUESTION: 88

Which of the following factors have the greatest influence on the independence of the internal audit activity?

Quality assessments and cultural biases of the internal audit activity.
Rotational assignments and familiarity of the internal audit activity.
Employee incentives and self review of the internal audit activity.
Organizational positioning and scope control of the internal audit activity.

Answer(s): D

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QUESTION: 89

Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?

Requesting a private meeting with senior management, without the presence of the chief audit executive.
Intervening during an audit involving ethical wrongdoing.
Discussing periodic reports of ethical breaches.
Authorizing an investigation of an unsafe product.

Answer(s): B

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QUESTION: 90

Which of the following is an example of collusion?

An employee includes a faked receipt in his expense claim, and the claim is signed by the employee's manager.
A vendor inflates the price of an item and remits a portion of the excess to the purchasing manager.
A vendor sends a duplicate invoice with a new invoice number, and the accounts payable system fails to detect the duplication.
An employee works with the IT manager to develop a program for identifying duplicate invoice payments.

Answer(s): B

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QUESTION: 86

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QUESTION: 90