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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 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 describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?
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 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 best describes an objective for an audit of an environmental management system?
Which of the following best describes an objective for an audit of an environmental management system?A . To assess whether an annual control review is necessary.B . To determine conformance with requirements and agreements.C . To evaluate executive management oversight.D . To promote environmental awareness.View AnswerAnswer: B
According to IIA guidance, which of the following steps are most important for an internal auditor to perform when evaluating an organization's social and environmental impact on the local community?
According to IIA guidance, which of the following steps are most important for an internal auditor to perform when evaluating an organization's social and environmental impact on the local community? 1) Determine whether previous incidents have been reported, managed, and resolved. 2) Determine whether a business contingency plan exists. 3)...
Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?
Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?A . The internal auditor may cite the use of other standards during audit communications.B . If the other standards are government-issued, the...
Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?
Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?A . Penetration test.B . Social engineering test.C . Vulnerability test.D . Physical control test.View AnswerAnswer: D
Which of the following statements regarding organizational governance is not correct?
Which of the following statements regarding organizational governance is not correct?A . An effective internal audit function is one of the four cornerstones of good governance.B . Those performing governance activities are accountable to the customer.C . Accountability is one of the key elements of organizational governance.D . Governance principles...
Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?
The economic order quantity can be calculated using the following formula: Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?A . Decrease by about 17 percent.B . Decrease by about 7 percent.C . Increase by about 7 percent.D ....
Which of the following is a limiting factor for capacity expansion?
Which of the following is a limiting factor for capacity expansion?A . Government pressure on organizations to increase or maintain employment.B . Production orientation of management.C . Lack of credible market leader in the industry.D . Company diversification.View AnswerAnswer: D
