IIA-CIA-Part3-3P

An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets . Which internal control component is most negatively affected?A . Monitoring.B . Control activities.C . Risk assessment.D . Control environment.View AnswerAnswer: D

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...

Which of the following is not a barrier to effective communication?A . Filtering.B . Communication overload.C . Similar frames of reference.D . Lack of source credibility.View AnswerAnswer: C

Which of the following costs would be incurred in an inventory stockout?A . Lost sales, lost customers, and backorder.B . Lost sales, safety stock, and backorder.C . Lost customers, safety stock, and backorder.D . Lost sales, lost customers, and safety stock.View AnswerAnswer: A

The internal audit activity completed an initial risk analysis of the organization's data storage center and found several areas of concern . Which of the following is the most appropriate next step?A . Risk response.B . Risk identification.C . Identification of context.D . Risk assessment.View AnswerAnswer: D

Which of the following is a key characteristic of a zero-based budget?A . A zero-based budget provides estimates of costs that would be incurred under different levels of activity.B . A zero-based budget maintains focus on the budgeting process.C . A zero-based budget is prepared each year and requires each...

Which of the following local area network physical layouts is subject to the greatest risk of failure if one device fails?A . Star network.B . Bus network.C . Token ring network.D . Mesh network.View AnswerAnswer: C

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...

An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud . Which of the following controls would be least effective in detecting any potential fraudulent activity?A . Exception report identifying payment anomalies.B . Documented policy and procedures.C . Periodic account reconciliation of contractor charges.D...

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...