NEW QUESTION 1

Operational management in the IT department has introduced performance evaluation policies that are linked to employees achieving continuing education hours. This activity is designed to prevent which of the following conditions?

• A. Knowledge/skills gap
• B. Monitoring gap
• C. Accountability/reward failure.
• D. Communication failure.

Answer: A

NEW QUESTION 2

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?

• A. Use the equity method to recalculate the investment carrying value
• B. Confirm the securities held by the broker
• C. Perform a calculation of premium or discount amortization.
• D. Compare the carrying value with current market quotations

Answer: D

NEW QUESTION 3

Which of the following statements is correct regarding risk analysis?

• A. The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.
• B. The highest risk assessment should always be assigned to the area with the largest potential loss.
• C. The highest risk assessment should always be assigned to the area with the highest probability of occurrence.
• D. Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Answer: A

NEW QUESTION 4

An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

• A. Hardware encryption.
• B. Software encryption
• C. Data encryption.
• D. Authentication.

Answer: C

NEW QUESTION 5

The following transactions and events occurred during the year:

- $300,000 of raw materials were purchased, of which $20,000 were returned because of defects
- $600,000 of direct labor costs were incurred.
- S750.000 of manufacturing overhead costs were incurred. What is the organization's cost of goods sold for the year?

• A. $1.480.000
• B. $1 500 000
• C. $1,610.000
• D. $1650 000

Answer: B

NEW QUESTION 6

Refer to the exhibit.

The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?

• A. 21 days.
• B. 22 days.
• C. 27 days.
• D. 51 days.

Answer: C

NEW QUESTION 7

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.

• A. 1 only
• B. 4 only
• C. 1 and 4 only
• D. 1, 2, and 3 only

Answer: C

NEW QUESTION 8

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:

• A. Test marketing
• B. Experimentation
• C. Segmentation
• D. Positioning

Answer: A

NEW QUESTION 9

Which of the following concepts of managerial accounting is focused on allocating overheads to products?

• A. Theory of constraints
• B. Just-in-time method
• C. Activity-based costing
• D. Break-even analysis

Answer: C

NEW QUESTION 10

Which of the following is the best approach to overcome entry barriers into a new business?

• A. Offer a standard product that is targeted in the recognized market.
• B. Invest in commodity or commodity-like product businesses.
• C. Enter into a slow-growing market.
• D. Use an established distribution relationship.

Answer: D

NEW QUESTION 11

Which of the following is a key responsibility of a database administrator?

• A. Troubleshoot end user problems
• B. Provide production support.
• C. Provide physical security of databases
• D. Maintain database integrity

Answer: D

NEW QUESTION 12

One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:

• A. Program versions are synchronized across the network.
• B. Emergency move procedures are documented and followed.
• C. Appropriate users are involved in program change testing.
• D. Movement from the test library to the production library is controlled.

Answer: A

NEW QUESTION 13

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?

• A. Ensure compliance with the model.
• B. Identify management functions.
• C. Identify emerging issues.
• D. Set goals for implementation.

Answer: A

NEW QUESTION 14

A global business organization is selecting managers to post to various international (expatriate) assignments. In the screening process, which of the following traits would be required to make a manager a successful expatriate?
* 1. Superior technical competence.
* 2. Willingness to attempt to communicate in a foreign language.
* 3. Ability to empathize with other people.

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2, and 3

Answer: C

NEW QUESTION 15

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.

• A. 1 and 2 only
• B. 1 and 4 only
• C. 2 and 3 only
• D. 3 and 4 only

Answer: B

NEW QUESTION 16

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?

• A. Electronic funds transfer.
• B. Knowledge-based systems.
• C. Biometrics.
• D. Standardized graphical user interface.

Answer: A

NEW QUESTION 17

Preferred stock is less risky for investors than is common stock because:

• A. Common stock pays dividends as a stated percentage of face value.
• B. Common stock has priority over preferred stock with regard to earnings and assets.
• C. Preferred dividends are usually cumulative.
• D. Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.

Answer: C

NEW QUESTION 18

How do data analysis technologies affect internal audit testing?

• A. They improve the effectiveness of spot check testing techniques
• B. They allow greater insight into high risk areas.
• C. They reduce the overall scope of the audit engagement.
• D. They increase the internal auditor's objectivity

Answer: B

NEW QUESTION 19

According to IIA guidance, which of the following best describes the activities that occur during the conversion phase of an IT project?

• A. Conversion of user requirements into system specifications
• B. Conversion of user requirements into program codes
• C. Conversion of test data into production data
• D. Conversion of data from the old system into the new system

Answer: D

NEW QUESTION 20

Which of the following IT-related activities is most commonly performed by the second line of defense?

• A. Block unauthorized traffic.
• B. Encrypt data.
• C. Review disaster recovery test results.
• D. Provide independent assessment of IT security.

Answer: C

NEW QUESTION 21
......