IIA-CIA-Part3

The economic order quantity for inventory is higher for an organization that has:A . Lower annual unit sales.B . Higher fixed inventory ordering costs.C . Higher annual carrying costs as a percentage of inventory value.D . A higher purchase price per unit of inventory.View AnswerAnswer: B

Sales trends.A . 1 onlyB . 4 onlyC . 1 and 4 onlyD . 1, 2, and 3 onlyView AnswerAnswer: C

According to the COSO enterprise risk management (ERM) framework, which of the following is not a typical responsibility of the chief risk officer?A . Establishing risk category definitions and a common risk language for likelihood and impact measures.B . Defining ERM roles and responsibilities.C . Providing the board with an...

Ensure that performance targets are always achieved.A . 1 and 3 onlyB . 2 and 4 onlyC . 1, 2, and 3 onlyD . 1, 2, 3, and 4View AnswerAnswer: C

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 of the following best describes a market signal?A . The bargaining power of buyers is forcing a drop in market prices.B . There is pressure from the competitor's substitute products.C . Strategic analysis by the organization indicates feasibility of expanding to new market niches.D . The competitor announces a...

A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:A . Adequate segregation of...

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

Which of the following statements is correct regarding risk analysis?A . The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.B . The highest risk assessment should always be assigned to the area...

An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?A . 7 percent simple interest with a 10 percent compensating balance.B . 7 percent simple interest paid at the end of each year.C . 7...