Business Knowledge for Internal Auditing Questions and Answers
Which of the following is most influenced by a retained earnings policy?
Which of the following is a systems software control?
Management is pondering the following question:
"How does our organization compete?"
This question pertains to which of the following levels of strategy?
An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization's needs, in order to quickly recover operational capability in the event of a disaster, Which of the following best describes this approach to disaster recovery planning?
According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?
The manager of the sales department wants to Increase the organization's net profit margin by 7% (from 43% in the prior year to 50% in the current year). Given the information provided in the table below, what would be the targeted sales amount for the current year?
Which of the following is a characteristic of using a hierarchical control structure?
Which of the following would an organization execute to effectively mitigate and manage risks created by a crisis or event?
Which of the following would most likely serve as a foundation for individual operational goats?
According to 11A guidance on IT, which of the following spreadsheets is most likely to be considered a high-risk user-developed application?
Which of the following situations best illustrates a "false positive" in the performance of a spam filter?
Which of the following networks is suitable for an organization that has operations In multiple cities and countries?
According to IIA guidance, which of the following is an IT project success factor?
At what stage of project integration management would a project manager and project management team typically coordinate the various technical and organizational interfaces that exist in the project?
Which of the following biometric access controls uses the most unique human recognition characteristic?
An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?
While conducting an audit of the accounts payable department, an internal auditor found that 3% of payments made during the period under review did not agree with the submitted invoices. Which of the following key performance indicators (KPIs) for the department would best assist the auditor in determining the significance of the test results?
At one organization, the specific terms of a contract require both the promisor and promisee to sign the contract in the presence of an independent witness. What is the primary role to the witness to these signatures?
An organization's board of directors is particularly focused on positioning, the organization as a leader in the industry and beating the competition. Which of the following strategies offers the greatest alignment with the board's focus?
Which of the following would be classified as IT general controls?
Which of the following is an indicator of liquidity that is more dependable than working capital?
According to lIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?
According to IIA guidance, which of the following statements is true regarding analytical procedures?
An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC
resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?
Which of the following is a characteristic of big data?
The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity's (lAArs) processes. He would like to reduce the time to complete audits and improve client ratings of the IAA. Which of the following staffing approaches is the CAE most likely lo select?
What relationship exists between decentralization and the degree, importance, and range of lower-level decision making?
An internal auditor is reviewing key phases of a software development project. Which of the following would; the auditor most likely use to measure the project team's performance related to how project tasks are completed?
Which of the following is a sound network configuration practice to enhance information security?
Which of the following controls would enable management to receive timely feedback and help mitigate unforeseen risks?
When examining; an organization's strategic plan, an internal auditor should expect to find which of the following components?
Which of following best demonstrates the application of the cost principle?
Which of the following best describes owner's equity?
An internal auditor for a pharmaceutical company as planning a cybersecurity audit and conducting a risk assessment. Which of the following would be considered the most significant cyber threat to the organization?
An internal auditor reviewed Finance Department records to obtain a list of current vendor addresses. The auditor then compared the vendor addresses to a record of employee addresses maintained by the Payroll Department Which of the following types of data analysis did the auditor perform?
An organization and its trading partner rely on a computer-to-computer exchange of digital business documents. Which of the following best describes this scenario?
Which of the following controls would an internal auditor consider the most relevant to reduce risks of project cost overruns?
Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables. Which of the following would be the best argument for using the direct write-off method?
An organization discovered fraudulent activity involving the employee time-tracking system. One employee regularly docked in and clocked out her co-worker friends on their days off, inflating their reported work hours and increasing their wages. Which of the following physical authentication devices would be most effective at disabling this fraudulent scheme?
According to IIA guidance, which of the following links computers and enables them to -communicate with each other?
Which of the following responsibilities would ordinary fall under the help desk function of an organization?
The head of the research arid development department at a manufacturing organization believes that his team lacks expertise in some areas, and he decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?
1. Favorable labor efficiency variance.
2. Adverse labor rate variance.
3. Adverse labor efficiency variance.
4. Favorable labor rate variance.
Which of the following is most appropriately placed in the financing section of an organization's cash budget?
Which of the following physical access control is most likely to be based on ’’something you have" concept?
Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?
A third party who provides payroll services to the organization was asked to create audit or “read-only 1 functionalities in their systems. Which of the following statements is true regarding this request?
An organization decided to outsource its human resources function. As part of its process migration, the organization is implementing controls over sensitive employee data.
What would be the most appropriate directive control in this area?
The internal audit activity has identified accounting errors that resulted in the organization overstating its net income for the fiscal year. Which of the following is the most likely cause of this overstatement?
Which of the following is true regarding the use of remote wipe for smart devices?
Which of the following inventory costing methods requires the organization to account for the actual cost paid for the unit being sold?
Which of the following job design techniques would most likely be used to increase employee motivation through job responsibility and recognition?
