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Which internal control component is most negatively affected?
An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?A . Monitoring.B . Control activities.C . Risk assessment.D . Control environment.View AnswerAnswer: D
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 internal control component is most negatively affected?
An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?A . Monitoring.B . Control activities.C . Risk assessment.D . Control environment.View AnswerAnswer: D
Pricing models linked to seasonal demand.
Pricing models linked to seasonal demand.A . 1 and 2 onlyB . 2 and 3 onlyC . 1, 2, and 3 onlyD . 1, 2, 3, and 4View AnswerAnswer: C
How inputs combine with outputs to generate activities.
How inputs combine with outputs to generate activities.A . 1 and 2 onlyB . 1 and 3 onlyC . 2 and 4 onlyD . 3 and 4 onlyView AnswerAnswer: B
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...
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?A . Risk acceptance.B . Risk sharing.C . Risk avoidance.D . Risk reduction.View AnswerAnswer: D
Which is the least effective form of risk management?
Which is the least effective form of risk management?A . Systems-based preventive control.B . People-based preventive control.C . Systems-based detective control.D . People-based detective control.View AnswerAnswer: D
Which of the following is an example of a risk avoidance response?
Which of the following is an example of a risk avoidance response?A . Buying an insurance policy to protect against loss events.B . Hedging against natural gas price fluctuations.C . Selling a non-strategic business unit.D . Outsourcing a high risk process to a third party.View AnswerAnswer: C
Which of the following annual interest rates is least expensive?
An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?A . 7 percent simple interest with a 10 percent compensating balance.B . 7 percent simple interest paid at the end of each year.C . 7...
