IIA-CIA-Part3

In mergers and acquisitions, which of the following is an example of a horizontal combination?A . Dairy manufacturing company taking over a large dairy farm.B . A movie producer acquires movie theaters.C . A petroleum processing company acquires an agro-processing firm.D . A baker taking over a competitor.View AnswerAnswer: D

Monitoring systems are in place to alert management to unexpected events.A . 1 and 3.B . 1 and 4.C . 2 and 3.D . 2 and 4.View AnswerAnswer: B

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...

Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?A . A time-sensitive just-in-time purchase environment.B . A large volume of custom purchases.C . A variable volume sensitive to material cost.D . A currently inefficient purchasing process.View AnswerAnswer: A

According to IIA guidance, which of the following steps are most important for an internal auditor to perform when evaluating an organization's social and environmental impact on the local community? ✑ Determine whether previous incidents have been reported, managed, and resolved. ✑ Determine whether a business contingency plan exists. ✑...

According to the waterfall cycle approach to systems development, which of the following sequence of events is correct?A . Program design, system requirements, software design, analysis, coding, testing, operations.B . System requirements, software design, analysis, program design, testing, coding, operations.C . System requirements, software design, analysis, program design, coding, testing,...

When granting third parties temporary access to an entity's computer systems, which of the following is the most effective control?A . Access is approved by the supervising manager.B . User accounts specify expiration dates and are based on services provided.C . Administrator access is provided for a limited period.D ....

The most important reason to use risk assessment in audit planning is to:A . Identify redundant controls.B . Improve budgeting accuracy.C . Enhance assurance provided to management.D . Assist in developing audit programs.View AnswerAnswer: C

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 methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?A . Electronic funds transfer.B . Knowledge-based systems.C ....