In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?
In the years after the mind-service point of a depreciable asset which of the following depreciation methods will result in the highest depreciation expense?
Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?
An organization facing rapid growth decides to employ a third party service provider to manage its customer relationship management function. Which of the following is true regarding the supporting application software used by that provider compared to an in-house developed system?
1) Updating documentation is always a priority.
2) System availability is usually more reliable.
3) Data security risks are lower.
4) Overall system costs are lower.
Which of the following application-based controls is an example of a programmed edit check?
Which of the following should software auditors do when reporting internal audit findings related to enterprise wide resource planning?
An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?
Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?
At a manufacturing plant, how would using Internet of Things during the production process benefit the organization?
Much of the following authentication device credentials is the most difficult to revoke when an employee's access rights need to be removed?
Which of the following application controls checks the integrity of data entered into a business application?
Which of the following security controls focuses most on prevention of unauthorized access to the power plant?
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 statements are true regarding the use of heat maps as risk assessment tools?
1. They focus primarily on known risks, limiting the ability to identify new risks.
2. They rely heavily on objective assessments and related risk tolerances.
3. They are too complex to provide an easily understandable view of key risks.
4. They are helpful but limited in value in a rapidly changing environment.
Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?
Which of the following is a characteristic of just-in-time inventory management systems?
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?
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 best describes a detective control designed to protect an organization from cyberthreats and attacks?
Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?
A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?
If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?
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.
Which of the following does not provide operational assurance that a computer system is operating properly?
Which of the following distinguishes the added-value negotiation method from traditional negotiating methods?
When initiating international ventures, an organization should consider cultural dimensions in order to prevent misunderstandings. Which of the following does not represent a recognized cultural dimension in a work environment?
Which of the following practices impacts copyright issues related to the manufacturer of a smart device?
Organizations mat adopt just-in-time purchasing systems often experience which of the following?
Which of the following statements is true regarding user-developed applications (UDAs) and traditional IT applications?
An internal auditor is reviewing the organization's performance appraisal process. Which of the following methods would be most effective to identify stereotyping?
A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?
Which of the following actions would senior management need to consider as pan of new IT guidelines regarding the organization's cybersecurity policies?
Which of the following describes a third-party network that connects an organization specifically with its trading partners?
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 statements is true regarding the resolution of interpersonal conflict?
Which of the following best describes an objective for an audit of an environmental management system?
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.
A manager has difficulty motivating staff to improve productivity, despite establishing a lucrative individual reward system. Which of the following is most likely the cause of the difficulty?
Which stage in the industry life cycle is characterized by many different product variations?
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?
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:
Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?
In accounting, which of the following statements is true regarding the terms debit and credit?
An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service
problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?
Which of the following application software features is the least effective control to protect passwords?
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 the best approach to overcome entry barriers into a new business?
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.
What must be monitored in order to manage risk of consumer product inventory obsolescence?
1) Inventory balances.
2) Market share forecasts.
3) Sales returns.
4) Sales trends.
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?
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?
An internal auditor is reviewing results from software development integration testing. What is the purpose of integration testing?
According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?
Which of the following strategies is most appropriate for an industry that is in decline?
For employees, the primary value of implementing job enrichment is which of the following?
A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?
Which of the following IT controls includes protection for mainframe computers and workstations?
While conducting audit procedures at the organization's data center, an internal auditor noticed the following:
Backup media was located on data center shelves.
Backup media was organized by date.
Backup schedule was one week in duration.
The system administrator was able to present restore logs.
Which of the following is reasonable for the internal auditor to conclude?
A multinational organization involved in online business has planned to set up a help desk service. Which of the following best describes the role performed by the help desk?
An organization invests excess snort-term cash in trading securities. When of the following actions should an internal auditor take to test the valuation of those securities?
Which of the following most accurately describes the purpose of application authentication controls?
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TESTED 26 Dec 2024
