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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
Overall system costs are lower.
Overall system costs are lower.A . 1 and 2 onlyB . 1 and 3 onlyC . 2 and 4 onlyD . 3 and 4 onlyView AnswerAnswer: C
The most important reason to use risk assessment in audit planning is to:
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
In order to maximize profit, how much of product Y should the organization produce each month?
An organization produces two products, X and Y. The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows: Product X Product Y Selling price per unit $10...
The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:
The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:A . There is an external market for that service.B . The selling department operates at 50 percent of its capacity.C . The purchasing department...
If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?
If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?A . Conform with all other parts of The IIA's Standards and provide appropriate disclosures.B . Conform with all other parts of The IIA's Standards; there is no need...
Which of the following statements is correct regarding risk analysis?
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...
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?
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 ....
In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?
In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?A . The underlying causes of the risk.B . The impact of the risk on the organization's objectives.C . The risk levels of current and future events.D . The...
Which of the following borrowing options is an unsecured loan?
Which of the following borrowing options is an unsecured loan?A . Second-mortgage financing from a bank.B . An issue of commercial paper.C . Pledged accounts receivable.D . Asset-based financing.View AnswerAnswer: B
