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Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?
Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?A . The auditor should focus on the audit client as a person and understand him, rather than just...
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?A . The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.B...
For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?
For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy? 1) It significantly raises compensation and staffing costs. 2) It produces resentment among the organization's employees in host countries. 3) It limits career mobility for parent-country nationals. 4) It can lead to cultural myopia.A...
Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?
Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance? 1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization. 2) The IAA must assess whether the IT governance...
Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?
Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?A . Intranet.B . Extranet.C . Digital subscriber line.D . Broadband.View AnswerAnswer: B
A capital investment project will have a higher net present value, everything else being equal, if it has:
A capital investment project will have a higher net present value, everything else being equal, if it has:A . A higher initial investment level.B . A higher discount rate.C . Cash inflows that are larger in the later years of the life of the project.D . Cash inflows that are...
Which of the following must be adjusted to index a progressive tax system to inflation?
Which of the following must be adjusted to index a progressive tax system to inflation?A . Tax deductions, exemptions, and tax filings.B . Tax deductions, exemptions, and tax brackets.C . Tax brackets, tax deductions, and tax payments.D . Tax brackets, exemptions, and nominal tax receipts.View AnswerAnswer: B
Which of the following audit procedures would not provide assurance to the auditor on this matter?
An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls . Which of the following audit procedures would not provide assurance to the auditor on this matter?A . Interviewing the organization's employees.B . Observing the organization's operations.C . Reading the board's minutes.D ....
Which of the following is useful for forecasting the required level of inventory?
Which of the following is useful for forecasting the required level of inventory? 1) Statistical modeling. 2) Information about seasonal variations in demand. 3) Knowledge of the behavior of different business cycles. 4) Pricing models linked to seasonal demand.A . 1 and 2 onlyB . 2 and 3 onlyC ....
Which of the following does not provide operational assurance that a computer system is operating properly?
Which of the following does not provide operational assurance that a computer system is operating properly?A . Performing a system audit.B . Making system changes.C . Testing policy compliance.D . Conducting system monitoring.View AnswerAnswer: B
