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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
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:A . Use an aging schedule to more closely estimate uncollectible accounts.B . Eliminate the need for an allowance for doubtful accounts.C . Emphasize the accuracy of...
During a review of a web-based application used by customers to check the status of their bank accounts, it would be most important for the internal auditor to ensure that:
During a review of a web-based application used by customers to check the status of their bank accounts, it would be most important for the internal auditor to ensure that:A . Access to read application logs is restricted to authorized users.B . Account balance information is encrypted in the database.C...
The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization’s strategies and objectives.
The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization’s strategies and objectives.A . 1 onlyB . 4 onlyC . 2 and 4D . 3 and 4View AnswerAnswer: C
Which of the following is not a method for implementing a new application system?
Which of the following is not a method for implementing a new application system?A . Direct cutover.B . Parallel.C . Pilot.D . Test.View AnswerAnswer: D
The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:
The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:A . Test marketingB . ExperimentationC . SegmentationD . PositioningView AnswerAnswer: A
The main reason to establish internal controls in an organization is to:
The main reason to establish internal controls in an organization is to:A . Encourage compliance with policies and procedures.B . Safeguard the resources of the organization.C . Ensure the accuracy, reliability, and timeliness of information.D . Provide reasonable assurance on the achievement of objectives.View AnswerAnswer: D
What is the closing inventory if the periodic inventory system is used?
During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?A . $170,000B . $280,000C . $300,000D . $540,000View AnswerAnswer: A
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?A . Submit batches of test transactions through the current system and verify with expected results.B . Use a test program to simulate the normal data entering process.C . Select a...
Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?
Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?A . A flexible budget.B . Variance analysis.C . A contribution margin income statement by...
