IIA-CIA-Part3

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

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 factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?A . A sense of achievement.B . Promotion.C . Recognition.D . An incremental increase in salary.View AnswerAnswer: D

According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?A . To ensure that adequate controls exist to prevent any significant business interruptions.B . To identify and address potential security weaknesses within the system.C . To...

Which of the following is a characteristic of an emerging industry?A . Established strategy of players.B . Low number of new firms.C . High unit costs.D . Technical expertise.View AnswerAnswer: C

Identify and prioritize the resources required to support critical business processes.A . 1 onlyB . 2 and 4 onlyC . 1, 3, and 4 onlyD . 1, 2, 3, and 4View AnswerAnswer: A

Which of the following statements about COBIT is not true?A . COBIT helps management understand and manage the risks associated with information technology (IT) processes.B . Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.C . COBIT control objectives are specific to various IT platforms and help...

According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?A . Determine the optimal amount of resources for the organization to invest in CSC . Align CSR program objectives with the organization's strategic plan.D . Integrate CSR activities...

Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered: Activity Level - Maintenance Cost Month Patient Days Incurred January 5,600 $7,900 February 7,100 $8,500 March 5,000 $7,400 April 6,500 $8,200 May 7,300 $9,100 June 8,000 $9,800 If the cost of maintenance...

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