-ACCA Certification Exam Questions with AI Explanations

QUESTION: 106

Which of the following scenarios best illustrates a rationalization as the root cause of potential fraud?

Managers who have been with the organization for several decades become aware that newly hired, younger managers are being moved more quickly into senior positions.
The controller at a nationwide manufacturing company recently opted to no longer require two- week mandatory vacations for accounting staff.
Security cameras that monitor cash handling at the register are not functioning.
The organization is slowly phasing out three mature products that produce the highest commissions for the sales staff.

Answer(s): B

An organization decides to take no action on one of its financial risks because the cost of implementing the control outweighs the value of the asset being protected.
Which of the following best describes this risk strategy?

Risk avoidance.
Risk-benefit analysis.
Risk sharing.
Risk acceptance.

Answer(s): D

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QUESTION: 108

Which of the following is most likely to enhance an internal auditor's objectivity?

An auditor is appropriately able to communicate results.
An auditor performs his work free from interference.
An auditor is unrestricted in determination of scope.
An auditor avoids conflicts of interest.

Answer(s): D

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QUESTION: 109

According to IIA guidance, which of the following best describes internal auditors' responsibility regarding fraud?

Internal auditors should take a leading role in investigating all fraud-related cases.
Internal auditors must have sufficient knowledge to evaluate the risk of fraud.
Internal auditors should report all fraud cases to law enforcement agents, in accordance with the Code of Ethics.
Internal auditors are responsible for ensuring that fraud does not occur.

Answer(s): B

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QUESTION: 110

An internal auditor completed an audit of a bank's loan department and found all significant risks to be managed adequately through effective internal controls.
Which of the following would be an appropriate conclusion to report to management?

The residual risk is lower than or equal to the risk appetite.
The residual risk is higher than or equal to the risk appetite.
The inherent risk is lower than or equal to the risk tolerance.
The inherent risk is higher than or equal to the risk tolerance.

Answer(s): A

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IIA ACCA CIA Challenge Exam IIA-ACCA Exam Questions in PDF

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QUESTION: 108

QUESTION: 109

QUESTION: 110