Online Access Free IIA-ACCA Exam Questions

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

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

An internal audit activity is using the auditing-by-element approach to audit the organization's controls around corporate social responsibility. Which of the following would be an element for the internal audit activity to consider?

• A.Working conditions.
• B.Shareholders and investors.
• C.Employees' families.
• D.Marketplace competition.

Which of the following enhances the independence of the internal audit activity?

• A.The CAE administratively reports to the board.
• B.The chief audit executive (CAE) approves the annual internal audit plan.
• C.The audit committee approves the CAE's annual salary increase.
• D.The chief executive officer approves the internal audit charter.

A code of business conduct should include which of the following to increase its deterrent effect?
1. Appropriate descriptions of penalties for misconduct.
2. A notification that code of conduct violations may lead to criminal prosecution.
3. A description of violations that injure the interests of the employer.
4. A list of employees covered by the code of conduct.

• A.1 and 2
• B.1 and 3
• C.3 and 4
• D.2 and 4

The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
1. Financial measures
2. Internal business process measures.
3. Client satisfaction measures
4. Innovation and learning measures

• A.2 and 4 only.
• B.3 and 4 only.
• C.1 only.
• D.2, 3, and 4 only