NEW QUESTION 1

Which of the following is the primary benefit of including end users in the system development process?

• A. Improved integrity of programs and processing.
• B. Enhanced ongoing maintenance of the system.
• C. Greater accuracy of the testing phase.
• D. Reduced need for unexpected software changes.

Answer: C

NEW QUESTION 2

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?

• A. A star
• B. A cash cow
• C. A Question mark
• D. A dog

Answer: B

NEW QUESTION 3

At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?

• A. Prior to testing the new application.
• B. During testing of the new application.
• C. During implementation of the new application.
• D. During maintenance of the new application.

Answer: A

NEW QUESTION 4

Which of the following is not a common feature of cumulative preferred stock?

• A. Priority over common stock with regard to dilution of shares.
• B. Priority over common stock with regard to earnings.
• C. Priority over common stock with regard to dividend payment.
• D. Priority over common stock with regard to assets.

Answer: A

NEW QUESTION 5

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

• A. A tougher collections policy that reduces the bad debt loss ratio.
• B. A higher cost per unit sold.
• C. A longer average collection period.
• D. An increase in the cost of capital.

Answer: A

NEW QUESTION 6

Which of the following re a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

• A. Higher cash flow and treasury balances
• B. Higher inventory balances
• C. Higher accounts receivable
• D. Higher accounts payable

Answer: C

NEW QUESTION 7

Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

• A. Penetration test.
• B. Social engineering test.
• C. Vulnerability test.
• D. Physical control test.

Answer: D

NEW QUESTION 8

Which of the following statements best describes the frameworks set forth by the International Standards Organization?

• A. Globally accepted standards for industries and processes.
• B. Bridging the gaps among control requirements, technical issues, and business risks.
• C. Practical guidance and benchmarks for all organizations that use information systems.
• D. Frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.

Answer: A

NEW QUESTION 9

An organization has started allowing employees to use their personal smart devices to accept vendor payments. What should the organization's bring-your-own-device (BYOD) policy include to specifically address security and privacy required by the Payment Card Data Security Standard (PCI DSS)?

• A. Approved devices
• B. Mobile applications
• C. Data storage.
• D. Backups and transfers

Answer: C

NEW QUESTION 10

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?

• A. High degree of masculinity.
• B. Low uncertainty avoidance.
• C. High collectivism.
• D. Low long-term orientation.

Answer: C

NEW QUESTION 11

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.

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

Answer: C

NEW QUESTION 12

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?

• A. Review and acquire the external audit service.
• B. Assess the appraisal and actuarial services.
• C. Determine the selection criteria.
• D. Identify regulatory requirements to be considered.

Answer: D

NEW QUESTION 13

Which of the following is an example of a physical control?

• A. Providing fire detection and suppression equipment
• B. Establishing a physical security policy and promoting it throughout the organization
• C. Performing business continuity and disaster recovery planning
• D. Keeping an offsite backup of the organization's critical data

Answer: A

NEW QUESTION 14

According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time?

• A. Process element.
• B. Key principles.
• C. Maturity model.
• D. Assurance.

Answer: C

NEW QUESTION 15

According to the waterfall cycle approach to systems development, which of the following sequence of events is correct?

• A. Program design, system requirements, software design, analysis, coding, testing, operations.
• B. System requirements, software design, analysis, program design, testing, coding, operations.
• C. System requirements, software design, analysis, program design, coding, testing, operations.
• D. System requirements, analysis, coding, software design, program design, testing, operations.

Answer: C

NEW QUESTION 16

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?

• A. The auditor is normalizing data in preparation for analyzing it
• B. The auditor is analyzing the data m preparation for communicating the results
• C. The auditor is cleaning the data in preparation for determining which processes may tie involved
• D. The auditor is reviewing the data prior lo defining the question

Answer: A

NEW QUESTION 17

An organization is developing a new online collaboration tool for employees. The tool includes a homepage that is customized to each employee according to his department and job function Which of the following engagements should be conducted to ensure that the organization has included all departments and job
functions in the system before it is implemented?

• A. An application control review
• B. A source code review
• C. A design review
• D. An access control review

Answer: C

NEW QUESTION 18

According to Porter, which of the following is associated with fragmented industries?

• A. Weak entrance barriers.
• B. Significant scale economies.
• C. Steep experience curve.
• D. Strong negotiation power with suppliers.

Answer: A

NEW QUESTION 19

Which of the following is an example of an application system control?

• A. Data values fall within a prescribed range.
• B. Error listings are generated and promptly remediated.
• C. Report distribution is restricted to authorized personnel.
• D. Field amounts contain an upper or lower limit.

Answer: A

NEW QUESTION 20

Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?

• A. Decentralized organizations are more focused on organizational goals.
• B. Decentralized organizations streamline organizational structure.
• C. Decentralized organizations tend to be less expensive to operate.
• D. Decentralized organizations tend to be more responsive to market changes.

Answer: D

NEW QUESTION 21
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