Exact2Pass
Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management's duties with regard to this model?
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?
During a review of a web-based application used by customers to check the status of their bank accounts, it would be most important for the internal auditor to ensure that:
Which of the following is true regarding the COSO enterprise risk management framework?
An organization accomplishes its goal to obtain a 40 percent share of the domestic market, but is unable to get the desired return on investment and output per hour of labor. Based on this information the organization is most likely focused on which of the following?
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?
Which of the following professional organizations sets standards for quality and environmental audits?
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?
An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?
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 is an example of a nonfinancial internal failure quality cost?
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?
Which of the following statements is true regarding the roles and responsibilities associated with a corporate social responsibility (CSR) program?
Which of the following is not a common feature of cumulative preferred stock?
Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level -
Maintenance Cost
Month
Patient Days
January
5,600
$7,900
February
7,100
$8,500
March
5,000
$7,400
April
6,500
$8,200
May
7,300
$9,100
June
8,000
$9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?
Which of the following are typical audit considerations for a review of authentication?
1) Authentication policies and evaluation of controls transactions.
2) Management of passwords, independent reconciliation, and audit trail.
3) Control self-assessment tools used by management.
4) Independent verification of data integrity and accuracy.
The cost to enter a foreign market would be highest in which of the following methods of global expansion?
A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:
Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?
Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?
1) Encryption.
2) Traffic padding.
3) Edit checks.
4) Structured data format.
Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?
In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?
Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?
1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2) The IAA must assess whether the IT governance of the organization supports the organization’s strategies and objectives.
3) The IAA may assess whether the IT governance of the organization supports the organization’s strategies and objectives.
4) The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization’s strategies and objectives.
An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?
According to IIA guidance on IT. which of the following would be considered a primary control for a spreadsheet to help ensure accurate financial reporting?
Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?
An organization uses the management-by-objectives method, whereby employee performance is based on defined goals Which of the following statements is true regarding this approach?
An employee's mobile device used for work was stolen in a home burglary.
Which control, if already implemented by the organization, would best prevent unauthorized access to organizational data stored on the employee's device?
An internal auditor for a pharmaceutical company is planning a cybersecurity audit and conducting a risk assessment.
Which of the following would be considered the most significant cyber threat to the organization?
What is the most significant potential problem introduced by just-in-time inventory systems?
Which of the following options correctly defines a transmission control protocol/Internet protocol (TCP/IP)?
According to IIA guidance on IT. which of the following plans would pair the identification of critical business processes with recovery time objectives?
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 describes the most appropriate set of tests for auditing a workstation's logical access controls?
The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity's (IAA's) processes. He would like to reduce the time to complete audits and improve client ratings of the IAA.
Which of the following staffing approaches is the CAE most likely to select?
Which of the following budgets serves as a basis for the budgeted income statement?
In accounting, which of the following statements is true regarding the terms debit and credit?
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 most accurately describes the purpose of application authentication controls?
Which of the following application controls verifies the accuracy of transaction results in a system?
Which of the following statements is true regarding an organization's servers?
Which of the following describes the free trade zone in an e-commerce environment?
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?
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 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.
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:
For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?
1) It significantly raises compensation and staffing costs.
2) It produces resentment among the organization's employees in host countries.
3) It limits career mobility for parent-country nationals.
4) It can lead to cultural myopia.
Which of the following is most important for an internal auditor to check with regard to the database version?
Which of the following financial instruments should be recorded at fair market value on the financial statements?
Which of the following is likely to occur when an organization decides to adopt a decentralized organizational structure?
According to MA guidance on IT. which of the following best describes a logical access control?
Which of the following IT controls includes protection for mainframe computers and workstations?
Which of the following types of analytics focuses less on analysis and more on condensing data into mote meaningful pieces of information?
According to IIA guidance, which of the following statements is true with regard to workstation computers that access company information stored on the network?
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?
Which of the following should internal auditors be attentive of when reviewing personal data consent and opt-in/opt-out management process?
Which of the following controls would be the most effective in preventing the disclosure of an organization’s confidential electronic information?
Which of the following types of data analytics would be used by a hospital to determine which patients are likely to require readmittance for additional treatment?
Which of the following characteristics applies to an organization that adopts a flat structure?