IIA-ACCA Exam Results

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Question 68

Unsecured loans are loans:

Options:

That do not have to be repaid for over one year.

That appear to be too risky for most lenders to consider.

Granted on the basis of a company's credit standing.

Backed by mortgaged assets.

Question 69

Which of the following is classified as a product cost using the variable costing method?

1. Direct labor costs

2. Insurance on a factory.

3. Manufacturing supplies.

4. Packaging and shipping costs

Options:

1 and 2

1 and 3

2 and 4

3 and 4

Question 70

A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

Options:

Develop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.

Adopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.

Involve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.

Develop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.

Question 71

According to IIA guidance, which of the following steps are most important for an internal auditor to perform when evaluating an organization's social and environmental impact on the local community?

Determine whether previous incidents have been reported, managed, and resolved.
Determine whether a business contingency plan exists.
Determine the extent of transparency in reporting.
Determine whether a cost/benefit analysis was performed for all related projects.