IIA-CIA-Part3-3P

Which of the following budgets must be prepared first?A . Cash budget.B . Production budget.C . Sales budget.D . Selling and administrative expenses budget.View AnswerAnswer: C

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.View AnswerAnswer: A

Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?A . A multinational company has stockholders in other countries.B . A multinational company exports its products to other countries.C . A multinational company operates outside of its country of origin.D...

Within an enterprise, IT governance relates to the: 1) Alignment between the enterprise's IT long term plan and the organization's objectives. 2) Organizational structures of the company that are designed to ensure that IT supports the organization's strategies and objectives. 3) Operational plans established to support the IT strategies and...

All of the following are possible explanations for a significant unfavorable material efficiency variance except:A . Cutbacks in preventive maintenance.B . An inadequately trained and supervised labor force.C . A large number of rush orders.D . Production of more units than planned for in the master budget.View AnswerAnswer: D

Which of the following is useful for forecasting the required level of inventory? 1) Statistical modeling. 2) Information about seasonal variations in demand. 3) Knowledge of the behavior of different business cycles. 4) Pricing models linked to seasonal demand.A . 1 and 2 onlyB . 2 and 3 onlyC ....

Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?A . Increasing complexity over time.B . Interface with corporate systems.C . Ability to meet user needs.D . Hidden data columns or worksheets.View AnswerAnswer: C

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.A ....

The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:A . Use an aging schedule to more closely estimate uncollectible accounts.B . Eliminate the need for an allowance for doubtful accounts.C . Emphasize the accuracy of...

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:A . There is an external market for that service.B . The selling department operates at 50 percent of its capacity.C . The purchasing department...