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What are the objectives of governance as defined by the Standards?
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.View AnswerAnswer: A
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:A . Identifying risks to the organization's operations.B . Observing and analyzing controls.C . Prioritizing known risks.D . Reviewing organizational objectives.View AnswerAnswer: D
Which of the following is not a barrier to effective communication?
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?
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
Which of the following statements is true regarding the relationship between an individual’s average tax rate and marginal tax rate?
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...
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?A . Submit batches of test transactions through the current system and verify with expected results.B . Use a test program to simulate the normal data entering process.C . Select a...
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B: If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:A . $100B . $200C . $300D . $500View AnswerAnswer: A
Which of the following is useful for forecasting the required level of inventory?
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 ....
An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:
An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:A . Lack of awareness of the state of processing.B . Increased cost and complexity of network traffic.C . Interference of the mirrored data with the original source...
They are helpful but limited in value in a rapidly changing environment.
They are helpful but limited in value in a rapidly changing environment.A . 1 and 2 onlyB . 1 and 4 onlyC . 2 and 3 onlyD . 3 and 4 onlyView AnswerAnswer: B
