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Which of the following cost of capital methods identifies the time period required to recover the cost of the capital investment from the annual inflow produced?
Which of the following authentication controls combines what a user knows with the unique characteristics of the user respectively?
Which of the following is the first step an internal audit activity should undertake when executing a data analytics process?
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?
A retail organization mistakenly did not include S10.000 of inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?
Which of the following most accurately describes the purpose of application authentication controls?
Which of the following activities best illustrates a user's authentication control?
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 methods is most closely associated to year over year trends?
When using data analytics during a review of the procurement process, what is the first step in the analysis process?
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?
Which of the following statements is true regarding reversing entries in an accounting cycled
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 is a cybersecurity monitoring activity that involves assessing the strength of an organization's IT protection?
According to IIA guidance, which of the following is a primary component of a network security strategy?
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 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.
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?
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?
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
Which of the following are typical responsibilities for operational management within a risk management program?
1) Implementing corrective actions to address process deficiencies.
2) Identifying shifts in the organization's risk management environment.
3)( Providing guidance and training on risk management processes.
4) Assessing the impact of mitigation strategies and activities.
When auditing an application change control process, which of the following procedures should be included in the scope of the audit?
1) Ensure system change requests are formally initiated, documented, and approved.
2) Ensure processes are in place to prevent emergency changes from taking place.
3) Ensure changes are adequately tested before being placed into the production environment.
4) Evaluate whether the procedures for program change management are adequate.
Which of the following distinguishes the added-value negotiation method from traditional negotiating methods?
In mergers and acquisitions, which of the following is an example of a horizontal combination?
When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:
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 statements regarding organizational governance is not correct?
According to Porter, which of the following is associated with fragmented industries?
In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
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 conflict resolution methods should be applied when the intention of the parties is to solve the problem by clarifying differences and attaining everyone's objectives?
When granting third parties temporary access to an entity's computer systems, which of the following is the most effective control?
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.
A manager decided to build his team's enthusiasm by giving encouraging talks about employee empowerment, hoping to change the perception that management should make all decisions in the department.
The manager is most likely trying to impact which of the following components of his team's attitude?
Which of the following is likely to occur when an organization decides to adopt a decentralized organizational structure?
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 financial instruments should be recorded at fair market value on the financial statements?
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 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?
What kind of strategy would be most effective for an organization to adopt in order to implement a unique advertising campaign for selling identical product lines across all of its markets?
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?
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?
Which of the following statements about mentoring is true?
1) Mentoring can be used effectively for increasing employee retention
2) Mentoring can be used effectively in reducing employees frustration.
3) Mentoring can be used effectively for increasing organization communication.
4) Mentoring can be used effectively as a short term activity consisting of instruction and training
Which of me following application controls is the most dependent on the password owner?
Which of the following organization structures would most likely be able to cope with rapid changes and uncertainties?
Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?
In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?
A company's financial balance sheet is presented below:
The company has net working capital of:
According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:
The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:
Which of the following statements regarding database management systems is not correct?
According to IIA guidance, which of the following is a typical risk associated with the tender process and contracting stage of an organization's IT outsourcing life cycle?
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?
According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?
1) Consult on CSR program design and implementation.
2) Serve as an advisor on CSR governance and risk management.
3) Review third parties for contractual compliance with CSR terms.
4) Identify and mitigate risks to help meet the CSR program objectives.
An internal auditor discovered that several unauthorized modifications were made to the production version of an organization's accounting application. Which of the following best describes this deficiency?
Which of the following factors is considered a disadvantage of vertical integration?
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?
Which of the following would best prevent unauthorized external changes to an organization's data?
Multinational organizations generally spend more time and effort to identify and evaluate:
A capital investment project will have a higher net present value, everything else being equal, if it has:
An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:
Which of the following statements is in accordance with COBIT?
1) Pervasive controls are general while detailed controls are specific.
2) Application controls are a subset of pervasive controls.
3) Implementation of software is a type of pervasive control.
4) Disaster recovery planning is a type of detailed control.
Which of the following best describes an objective for an audit of an environmental management system?
TESTED 22 Dec 2024
