IIA-CIA-Part3

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

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...

Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?A . Times interest earned, return on assets, and inventory turnover.B . Accounts receivable turnover, inventory turnover in days, and the current ratio.C . Accounts receivable turnover, return on assets, and the current...

A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:A . Functional departmentalization.B . Product departmentalization.C . Matrix organization.D . Divisional organization.View AnswerAnswer: A

A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?A . Evaluate the proposed external auditor fee.B . Recommend criteria to be used in the selection process.C . Develop appropriate performance...

Which of the following statements pertaining to a market skimming pricing strategy is not true?A . The strategy is favored when unit costs fall with the increase in units produced.B . The strategy is favored when buyers are relatively insensitive to price increases.C . The strategy is favored when there...

Which of the following statements regarding program change management is not correct?A . The goal of the change management process is to sustain and improve organizational operations.B . The degree of risk associated with a proposed change determines if the change request requires authorization.C . In order to protect the...

Which of the following professional organizations sets standards for quality and environmental audits?A . The Committee of Sponsoring Organizations of the Treadway Commission.B . The Board of Environmental, Health, and Safety Auditor Certifications.C . The International Organization of Supreme Audit Institutions.D . The International Standards Organization.View AnswerAnswer: D

5 Based on this data, which of the following describes the value of Cost X in relation to the value of Output Produced?A . Cost X is a variable cost.B . Cost X is a fixed cost.C . Cost X is a semi-fixed cost.D . Cost X and the value...

Which of the following is the most likely reason an organization may decide to undertake a stock split?A . To keep stock price constant.B . To keep shareholders' equity constant.C . To increase shareholders' equity.D . To enhance the stock liquidity.View AnswerAnswer: D