NEW QUESTION 1

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?

• A. To ensure that adequate controls exist to prevent any significant business interruptions.
• B. To identify and address potential security weaknesses within the system.
• C. To ensure that tests contribute to improvement of the program.
• D. To ensure that deficiencies identified by the audit are promptly addressed.

Answer: C

NEW QUESTION 2

According to IIA guidance, which of the following is the correct order to conduct a business impact analysis (BIA) for the potential loss of an organization's network services''
* 1. identify resources and partners to provide required recovery services
* 2. Identify the business processes supporting the network functionality
* 3. Obtain approval of the BIA from the operating managers relative to their areas of responsibility
* 4. Identify the business impact if the network services cannot be performed

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

Answer: B

NEW QUESTION 3

An organization recently documented its procedures for recovering systems and data after a disaster How are these documented procedures most likely to be used during a disaster simulation exercise''

• A. To help property configure mass communication notification tools
• B. To help identify training needs across the functional areas required to recover systems and data.
• C. To help ensure that the team members who are required to recover systems and data understand their roles.
• D. To help validate the contact information of key personnel required to recover systems and data

Answer: C

NEW QUESTION 4

A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?

• A. Diversification
• B. Vertical integration
• C. Risk avoidance
• D. Differentiation

Answer: B

NEW QUESTION 5

A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

• A. Lack of coordination among different business units.
• B. Operational decisions are inconsistent with organizational goals.
• C. Suboptimal decision-making.
• D. Duplication of business activities.

Answer: C

NEW QUESTION 6

An internal auditor observed that the organization's disaster recovery solution will make use of a code site in a town several miles away Which of the following is likely to be a characteristic of this disaster recovery solution?

• A. Data is synchronized in real lime
• B. Recovery time is expected to be less than one week
• C. Servers are not available and need to be procured
• D. Recovery resources and data restore processes have not been defined

Answer: C

NEW QUESTION 7

New data privacy laws require an organization to use collected customer information for me sole purpose of meeting the organization's business requirements. Which of the following best addresses the risk of the organization not complying with this objective?

• A. Provide training on social engineering attacks
• B. Encrypt the customer information retained by the organization
• C. Establish policies that discipline those who misuse customer information
• D. Allocate access profiles for each end user of the information

Answer: B

NEW QUESTION 8

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

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

Answer: B

NEW QUESTION 9

Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?

• A. A contract is a tool used by both suppliers and customers, the model and complexity of which generally remains constant
• B. Collaboration during contract negotiation encourages stakeholders to develop consensus but typically increases cycle times and the likelihood that the contract will fail
• C. Differing legal requirements affect the attitudes of contracting parties as well as the length content and language of contracts
• D. A contract is a tool used by both suppliers and customers though it offers commercial assurance of the relationship, purely from a customer perspective

Answer: C

NEW QUESTION 10

Which of the following is the best reason for considering the acquisition of a nondomestic organization?

• A. Relatively fast market entry.
• B. Improved cash flow of the acquiring organization.
• C. Increased diversity of corporate culture.
• D. Opportunity to influence local government policy.

Answer: A

NEW QUESTION 11

Which of the following application controls can be defined as controls that monitor data Being processed and in storage to ensure it remains consistent and correct?

• A. Input controls
• B. Output controls
• C. Integrity controls
• D. Processing controls

Answer: C

NEW QUESTION 12

Which of the following strategies is most appropriate for an industry that is in decline?

• A. Invest in marketing.
• B. Invest in research and development.
• C. Control costs.
• D. Shift toward mass production.

Answer: C

NEW QUESTION 13

An internal auditor is assessing the risks related to an organization's mobile device pokey She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems Which of the following types of smart device risks should the internal auditor be most concerned about'

• A. Compliance
• B. Privacy
• C. Strategic
• D. Physical security.

Answer: A

NEW QUESTION 14

Which of the following statements is true regarding the relationship between an individual’s average tax rate and marginal tax rate?

• A. In a regressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.
• B. In a regressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.
• C. In a progressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.
• D. In a progressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.

Answer: D

NEW QUESTION 15

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.

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

Answer: A

NEW QUESTION 16

A bank uses customer departmentalization to categorize its departments. Which of the following groups best exemplifies this method of categorization?

• A. Community institutional and agricultural banking.
• B. Mortgages credit cards and savings
• C. South southwest and east.
• D. Teller manager and IT specialist

Answer: A

NEW QUESTION 17

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

Answer: B

NEW QUESTION 18

Which of the following cybersecurity-related activities is most likely to be performed by the second line of defense?

• A. Deploy intrusion detection systems and conduct penetration testing
• B. Administer security procedures, training, and testing.
• C. Monitor incidents, key risk indicators, and remediation
• D. implement vulnerability management with internal and external scans.

Answer: D

NEW QUESTION 19

With regard to disaster recovery planning, which of the following would most likely involve stakeholders from several departments?

• A. Determining the frequency with which backups will be performed.
• B. Prioritizing the order in which business systems would be restored.
• C. Assigning who in the IT department would be involved in the recovery procedures.
• D. Assessing the resources needed to meet the data recovery objectives

Answer: B

NEW QUESTION 20

What are the objectives of governance as defined by the Standards?

• A. Inform, direct, manage, and monitor.
• B. Identify, assess, manage, and control.
• C. Organize, assign, authorize, and implement.
• D. Add value, improve, assure, and conform.

Answer: A

NEW QUESTION 21
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