Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?
Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?
Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?
Which of the following strategies would most likely prevent an organization from adjusting to evolving industry market conditions?
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?
The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:
Which of the following are included in ISO 31000 risk principles and guidelines?
Which of the following statements is correct regarding corporate compensation systems and related bonuses?
1) A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
2) Compensation systems are not part of an organization's control system and should not be reported as such.
3) An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.
Which of the following are appropriate functions for an IT steering committee?
1) Assess the technical adequacy of standards for systems design and programming.
2) Continually monitor of the adequacy and accuracy of software and hardware in use.
3) Assess the effects of new technology on the organization`s IT operations.
4) Provide broad oversight of implementation, training, and operation of new systems.
When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:
When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?
1) Management’s tolerance for specific risks.
2) The cost versus benefit of implementing a control.
3) Whether a control can mitigate multiple risks.
4) The ability to test the effectiveness of the control.
Which of the following is useful for forecasting the required level of inventory?
1) Statistical modeling.
2) Information about seasonal variations in demand.
3) Knowledge of the behavior of different business cycles.
4) Pricing models linked to seasonal demand.
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:
During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?
Which of the following statements is true regarding outsourced business processes?
An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two.
Which of the following could be the reason for the decline in the net profit margin for year two?
A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.
Which of the following organizational structures does this situation represent?
An investor has acquired an organization that has a dominant position in a mature, slow-growth industry and consistently creates positive financial income Which of the following terms would the investor most likely label this investment in her portfolio?
Which of the following security controls focuses most on prevention of unauthorized access to the power plant?
An internal audit activity is piloting a data analytics model, which aims to identify anomalies in payments to vendors and potential fraud indicators Which of the following would be the most appropriate criteria for assessing the success of the piloted model?
An organization has received funding to continue a program that utilizes an in-house Due to new legislative requirements the application will require additional features to capture information not previously collected Which of the following is the most critical for completing this specific project?
A clothing company sells shirts for $8 per shirt. In order to break even, the company must sell 25,000 shirts. Actual sales total $300,000.
What is margin of safety sales for the company?
Which of the following budgets serves as a basis for the budgeted income statement?
Which of me following statements is most accurate concerning me management and audit of a web server?
Which of the following data analytics tools would be applied by an internal audit activity positioned at the lowest level of maturity?
Which of the following network types should an organization choose if it wants to allow access only to its own personnel?
Which of the following performance measures disincentivizes engaging in earnings management?
Which of the following principles is shared by both hierarchical and open organizational structures?
1) A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions
2) A supervisor's span of control should not exceed seven subordinates
3) Responsibility should be accompanied by adequate authority
4) Employees at all levels should be empowered to make decisions.
According to IIA guidance, which of the following statements is true regarding analytical procedures?
When examining an organization's strategic plan, an internal auditor should expect to find which of the following components?
Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?
An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent. If the organization has total debt of $1 000 000 what is the organization's sales level?
Which of the following types of analytics would be used by an organization to examine metrics by business units and identity the most profitable business units?
A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?
Which of the following is true of bond financing, compared to common stock, when all other variables are equal?
The board of directors wants to implement an incentive program for senior management that is specifically tied to the long-term health of the organization.
Which of the following methods of compensation would be best to achieve this goal?
An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?
The economic order quantity can be calculated using the following formula:
Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?
A key advantage of developing a computer application by using the prototyping approach is that it:
Which of the following statements regarding organizational governance is not correct?
Which of the following steps should an internal auditor take during an audit of an organization's business continuity plans?
1) Evaluate the business continuity plans for adequacy and currency.
2) Prepare a business impact analysis regarding the loss of critical business.
3) Identify key personnel who will be required to implement the plans.
4) Identify and prioritize the resources required to support critical business processes.
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:
Which of the following roles would be least appropriate for the internal audit activity to undertake with regard to an organization's corporate social responsibility (CSR) program?
Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?
Which of the following statements about slack time and milestones are true?
1) Slack time represents the amount of time a task may be delayed without delaying the entire project.
2) A milestone is a moment in time that marks the completion of the project's major deliverables.
3) Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.
4) A milestone requires resource allocation and needs time to be completed.
An organization accumulated the following data for the prior fiscal year:
Value of Percentage of
Quarter
Output Produced
Cost X
1
$4,750,000
2.9
2
$4,700,000
3.0
3
$4,350,000
3.2
4
$4,000,000
3.5
Based on this data, which of the following describes the value of Cost X in relation to the value of Output Produced?
Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?
What is the most significant potential problem introduced by just-in-time inventory systems?
An internal auditor is reviewing results from software development integration testing. What is the purpose of integration testing?
Which of the following examples demonstrates that the internal audit activity uses descriptive analytics in its engagements?
Which of the following is an example of a physical control designed to prevent security breaches?
Which of the following statements is true regarding reversing entries in an accounting cycled
Which of me following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?
Which of the following authentication controls combines what a user knows with the unique characteristics of the user respectively?
According to IIA guidance, which of the following is a primary component of a network security strategy?
An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the data. Which of me following statements is true regarding this scenario?
Which of the following activities best illustrates a user's authentication control?
Which of the following is the first step an internal audit activity should undertake when executing a data analytics process?
When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?
Multinational organizations generally spend more time and effort to identify and evaluate:
Which of the following is a strategy that organizations can use to stimulate innovation?
1) Source from the most advanced suppliers.
2) Establish employee programs that reward initiative.
3) Identify best practice competitors as motivators.
4) Ensure that performance targets are always achieved.
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TESTED 21 Nov 2024
