IIA-CIA-Part3

Capacity overbuilding is most likely to occur when management is focused on which of the following?A . Marketing.B . Finance.C . Production.D . Diversification.View AnswerAnswer: C

Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?A . Increasing complexity over time.B . Interface with corporate systems.C . Ability to meet user needs.D . Hidden data columns or worksheets.View AnswerAnswer: C

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

The organization makes exclusive arrangements with the channels.A . 1 and 3 onlyB . 1 and 4 onlyC . 2 and 3 onlyD . 2 and 4 onlyView AnswerAnswer: A

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...

An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud. Which of the following controls would be least effective in detecting any potential fraudulent activity?A . Exception report identifying payment anomalies.B . Documented policy and procedures.C . Periodic account reconciliation of contractor charges.D ....

Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?A . The cost of goods sold for the period will be understated.B . The cost of goods sold for the period will be overstated.C ....

Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?A . We are a people-and-goods mover.B . We supply energy.C . We make movies.D . We provide climate control in the home.View AnswerAnswer: C

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

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...