Online Access Free IIA-ACCA Practice Test

Preferred stock is less risky for investors than is common stock because:

• A.Common stock has priority over preferred stock with regard to earnings and assets.
• B.Common stock pays dividends as a stated percentage of face value.
• C.Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.
• D.Preferred dividends are usually cumulative.

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?

• A.Data encryption.
• B.Software encryption
• C.Hardware encryption.
• D.Authentication.

Which of the following situations would justify the removal of a finding from the final audit report?

• A.Management disagrees with the report findings and conclusions in their responses.
• B.Management has already satisfactorily completed the recommended corrective action.
• C.Management has provided additional information that contradicts the findings.
• D.Management believes that the finding is insignificant and unfairly included in the report.

Which of the following is an example of a risk avoidance response?

• A.Hedging against natural gas price fluctuations.
• B.Outsourcing a high risk process to a third party.
• C.Selling a non-strategic business unit.
• D.Buying an insurance policy to protect against loss events.

An internal auditor is conducting a financial audit. Which of the following audit procedures is most appropriate when existing internal controls are weak?

• A.Detail testing.
• B.Analytical procedures.
• C.Test of control.
• D.Test of design.