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According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?
An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?A . Avoidance.B . Reduction.C . Elimination.D . Sharing.View AnswerAnswer: B
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...
Provide broad oversight of implementation, training, and operation of new systems.
Provide broad oversight of implementation, training, and operation of new systems.A . 1, 2, and 3B . 1, 2, and 4C . 1, 3, and 4D . 2, 3, and 4View AnswerAnswer: D
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
Which of the following statements is true regarding outsourced business processes?
Which of the following statements is true regarding outsourced business processes?A . Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.B . Generally, independence is improved when the internal audit activity reviews outsourced business processes.C . The...
According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?
According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?A . Determine the optimal amount of resources for the organization to invest in CSC . Align CSR program objectives with the organization's strategic plan.D . Integrate CSR activities...
Which of the following professional organizations sets standards for quality and environmental audits?
Which of the following professional organizations sets standards for quality and environmental audits?A . The Committee of Sponsoring Organizations of the Treadway Commission.B . The Board of Environmental, Health, and Safety Auditor Certifications.C . The International Organization of Supreme Audit Institutions.D . The International Standards Organization.View AnswerAnswer: D
All of the following are true with regard to the first-in, first-out inventory valuation method except:
All of the following are true with regard to the first-in, first-out inventory valuation method except:A . It values inventory close to current replacement cost.B . It generates the highest profit when prices are rising.C . It approximates the physical flow of goods.D . It minimizes current-period income taxes.View AnswerAnswer:...
To assess the performance of employees.
To assess the performance of employees.A . 1 and 2 onlyB . 1 and 3 onlyC . 2 and 3 onlyD . 2 and 4 onlyView AnswerAnswer: B
Which of the following costs would be incurred in an inventory stockout?
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
