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According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?
1) Every employee generally has a responsibility for ensuring the success of CSR objectives.
2) The board has overall responsibility for the effectiveness of internal control processes associated with CSR.
3) Public reporting on the CSR governance process is expected.
4) Organizations generally have flexibility regarding what is included in a CSR program.
Which of the following price adjustment strategies encourages prompt payment?
An organization has received funding to continue a program that utilizes an in-house Due to new legislative requirements the application will require additional features to capture information not previously collected Which of the following is the most critical for completing this specific project?
A bond that matures after one year has a face value of $250,000 and a coupon of $30,000. If the market price of the bond is $265,000, which of the following would be the market interest rate?
According to IIA guidance, which of the following best describes the activities that occur during the conversion phase of an IT project?
The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity's (IAA's) 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 to select?
Which of the following does not provide operational assurance that a computer system is operating properly?
A global business organization is selecting managers to post to various international (expatriate) assignments.
In the screening process, which of the following traits would be required to make a manager a successful expatriate?
1) Superior technical competence.
2) Willingness to attempt to communicate in a foreign language.
3) Ability to empathize with other people.
Which of the following would best prevent unauthorized external changes to an organization's data?
Which of the following actions is most likely to gain support for process change?
An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:
According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?
1) Organizational governance.
2) Organizational operations.
3) Organizational information systems.
4) Organizational structure.
One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:
Which of the following is a role of the board of directors in the governance process?
Which of the following statements pertaining to a market skimming pricing strategy is not true?
When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:
An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?
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:
Which of the following statements is correct regarding corporate compensation systems and related bonuses?
1) A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
2) Compensation systems are not part of an organization's control system and should not be reported as such.
3) An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.
Which of the following best demonstrates an organization's ability to recover from a disaster?
According to the waterfall cycle approach to systems development, which of the following sequence of events is correct?
Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?
Which of the following is true regarding an organization's relationship with external stakeholders?
Refer to the exhibit.
The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?
Which of the following describes a typical desktop workstation used by most employees in their daily work?
A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?
Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?
For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?
1) It significantly raises compensation and staffing costs.
2) It produces resentment among the organization's employees in host countries.
3) It limits career mobility for parent-country nationals.
4) It can lead to cultural myopia.
According to IIA guidance, which of the following is a typical risk associated with the tender process and contracting stage of an organization's IT outsourcing life cycle?
According to IIA guidance on IT auditing, which of the following would not be an area examined by the internal audit activity?
According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time?
Which of the following statements regarding organizational governance is not correct?
A company's financial balance sheet is presented below:
The company has net working capital of:
Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
The audit committee of a global corporation has mandated a change in the organization's business ethics policy. Which of the following approaches describes the best way to accomplish the policy's diffusion worldwide?
Which of the following statements are true regarding the use of heat maps as risk assessment tools?
1. They focus primarily on known risks, limiting the ability to identify new risks.
2. They rely heavily on objective assessments and related risk tolerances.
3. They are too complex to provide an easily understandable view of key risks.
4. They are helpful but limited in value in a rapidly changing environment.
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?
An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:
A capital investment project will have a higher net present value, everything else being equal, if it has:
Which of the following best describes an objective for an audit of an environmental management system?
Technological uncertainty, subsidy, and spin-offs are usually characteristics of:
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?
Within an enterprise, IT governance relates to the:
1) Alignment between the enterprise's IT long term plan and the organization's objectives.
2) Organizational structures of the company that are designed to ensure that IT supports the organization's strategies and objectives.
3) Operational plans established to support the IT strategies and objectives.
4) Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.
Which of the following is a characteristic of just-in-time inventory management systems?
If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?
Which of the following is not a method for implementing a new application system?
Which of the following statements best describes the frameworks set forth by the International Standards Organization?
Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?
An internal auditor discovered that several unauthorized modifications were made to the production version of an organization's accounting application. Which of the following best describes this deficiency?
An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?
At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?
Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?
All of the following are true with regard to the first-in, first-out inventory valuation method except:
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
Where complex problems need to be addressed, which of the following communication networks would be most appropriate?
In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?
An organization is projecting sales of 100,000 units, at a unit price of $12. Unit variable costs are $7. If fixed costs are $350,000, what is the projected total contribution margin?
According to Porter, which of the following is associated with fragmented industries?
Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?
According to HA guidance or IT which of the following spreadsheets is most likely to be considered a high-risk user-develop application?
A manager at a publishing company received an email that appeared to be from one of her vendors with an attachment that contained malware embedded in an Excel spreadsheet. When the spreadsheet was opened, the cybercriminal was able to attack the company's network and gain access to an unpublished and highly anticipated book.
Which of the following controls would be most effective to prevent such an attack?
Which of the following attributes of data is the most significantly impacted by the internet of things?
An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?
An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the data. Which of me following statements is true regarding this scenario?
Which of the following practices circumvents administrative restrictions on smart devices, thereby increasing data security risks?
The management of working capital is most crucial for which of the following aspects of business?
Which of the following statements is true regarding cost-volume-profit analysis?
What would be the effect if an organization paid one of its liabilities twice during the year in error?
With regard to disaster recovery planning, which of the following would most likely involve stakeholders from several departments?
An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?
Which of the following assumptions regarding cost-volume-profit analysis is true?
Which of the following statements is true regarding the "management-by-objectives" method?
While conducting audit procedures at the organization's data center, an internal auditor noticed the following:
Backup media was located on data center shelves.
Backup media was organized by date.
Backup schedule was one week in duration.
The system administrator was able to present restore logs.
Which of the following is reasonable for the internal auditor to conclude?
Which of the following methods is most closely associated to year over year trends?
Based on lest results an IT auditor concluded that the organization would suffer unacceptable toss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?
Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?
At a manufacturing plant, how would using Internet of Things during the production process benefit the organization?
A multinational organization involved in online business has planned to set up a help desk service. Which of the following best describes the role performed by the help desk?
A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.
Which of the following organizational structures does this situation represent?
Management has established a performance measurement focused on the accuracy of disbursements The disbursement statistics, provided daily to all accounts payable and audit staff, include details of payments stratified by amount and frequency Which of the following is likely to be the greatest concern regarding this performance measurement?
Which of the following types of data analytics would be used by a hospital to determine which patients are likely to require readmittance for additional treatment?
The leadership of an organization encourages employees to form voluntary problem-solving groups whereby several employees from the same work area meet regularity during work hours to discuss improvements and creative ways to reduce costs. Which of the following best describes this approach?
An internal auditor is assessing the risks related to an organization's mobile device pokey She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems Which of the following types of smart device risks should the internal auditor be most concerned about?
Which of the following application controls can be defined as controls that monitor data Being processed and in storage to ensure it remains consistent and correct?
An internal auditor for a pharmaceutical company is planning a cybersecurity audit and conducting a risk assessment.
Which of the following would be considered the most significant cyber threat to the organization?
In reviewing an organization's IT infrastructure risks, which of the following controls is to be tested as part of reviewing workstations?
An organization is developing a new online collaboration tool for employees. The tool includes a homepage that is customized to each employee according to his department and job function Which of the following engagements should be conducted to ensure that the organization has included all departments and job functions in the system before it is implemented?
According to IIA guidance on IT which of the following best describes a but recovery and restore processes have not been defined?
An organization's network administrator received an email that appeared to come from the organization's external IT service provider requesting his credentials to perform an update of a server operating system If the IT service provider did not send the email, which of the following best describes the likely purpose of the email?
Which of the following data security policies is most likely to be the result of a data privacy law?
Which of the following application controls verifies the accuracy of transaction results in a system?
An internal audit activity is piloting a data analytics model, which aims to identify anomalies in payments to vendors and potential fraud indicators Which of the following would be the most appropriate criteria for assessing the success of the piloted model?
Which of the following situations best applies to an organization that uses a project rather man a process to accomplish its business activities?
Which of the following statements is true concerning the basic accounting treatment of a partnership?
An organization's account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?
Which of me following is applicable to both a job order cost system and a process cost system?
Which of the following controls would be the most effective in preventing the disclosure of an organization’s confidential electronic information?
Which of the following is a security feature that involves the use of hardware and software to fitter or prevent specific information from moving between the outside network and the outside network?
According to IIA guidance on IT. which of the following plans would pair the identification of critical business processes with recovery time objectives?
Which of the following bring-your-own-device (BYOD) practices is likely to increase the risk of infringement on local regulations such as copyright or privacy laws?
According to IIA guidance, which of the following is the correct order to conduct a business impact analysis (BIA) for the potential loss of an organization's network services''
1. identify resources and partners to provide required recovery services
2. Identify the business processes supporting the network functionality
3. Obtain approval of the BIA from the operating managers relative to their areas of responsibility
4. Identify the business impact if the network services cannot be performed
In which of the following plans is an employee most likely to find guidance on action and performance standards?
Which of the following performance measures disincentivizes engaging in earnings management?
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?
Which of me following statements is true regarding the reporting of tangible and intangible assets?
When using cost-volume-profit analysts which of the following will increase operating income once the break-even point has been reached?
The board has requested that the internal audit activity be involved in all phases of the organization's outsourcing of its network management. During which of the following stages is the internal auditor most likely to verify that the organization's right-to-audit clause is drafted effectively?
According to MA guidance, which of the following would indicate poor change management control?
1) Low change success rate
2) Occasional planned outages
3) Low number of emergency changes.
4) Instances of unauthorized changes
Which of the following types of analytics would be used by an organization to examine metrics by business units and identity the most profitable business units?
Which of the following is an example of a key systems development control typically found in the in-house development of an application system?
A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?
In an organization's established accounts payable department employees perform highly structured activities follow clearly defined procedures and have strict deadlines for performing their tasks The head of the department recently retired, and a new department head was hired To achieve the greatest benefit for this department and avoid redundancy the new leader should adopt which of the following leadership styles?
Which of the following network types should an organization choose if it wants to allow access only to its own personnel?
An organization is experiencing a high turnover. Which of the following can human resources deploy to effectively detect the root cause of turnover?
If a just-in-time purchasing system is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?
An internal auditor observed that the organization's disaster recovery solution will make use of a code site in a town several miles away Which of the following is likely to be a characteristic of this disaster recovery solution?
During a review of the accounts payable process, an internal auditor gathered all of the vendor payment transactions for the past 24 months. The auditor then used an analytics tool to identify the top five vendors that received the highest sum of payments.
Which of the following analytics techniques did the auditor apply?
Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?
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?
Which of the following should internal auditors be attentive of when reviewing personal data consent and opt-in/opt-out management process?
When using data analytics during a review of the procurement process what is the first step in the analysis process?
Which of the following statements is true regarding reversing entries in an accounting cycled
A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?
TESTED 14 Sep 2025