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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?

A.

1

B.

2

C.

3

D.

4

Which of the following is an example of a phishing attack?

A.

An employee receives an email that appears to be from the organization's bank, though it is not. The employee replies to the email and sends the requested confidential information.

B.

An organization's website has been hacked. The hacker added political content that is not consistent with the organization's views.

C.

An organization's systems have been compromised by malicious software. The software locks the organization's operating system until d ransom is paid.

D.

An organization's communication systems have been intercepted. A communication session is controlled by an unauthorized third party.

Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?

A.

Control environment.

B.

Control activities.

C.

Information and communication.

D.

Monitoring.

A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

A.

Lack of coordination among different business units.

B.

Operational decisions are inconsistent with organizational goals.

C.

Suboptimal decision-making.

D.

Duplication of business activities.

When initiating international ventures, an organization should consider cultural dimensions in order to prevent misunderstandings. Which of the following does not represent a recognized cultural dimension in a work environment?

A.

Self control.

B.

Power distance.

C.

Masculinity versus femininity.

D.

Uncertainty avoidance.

Which of the following best describes the concept of relevant cost?

A.

A future cost that is the same among alternatives.

B.

A future cost that differs among alternatives.

C.

A past cost that is the same among alternatives.

D.

A past cost that differs among alternatives.

Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

A.

The internal auditor may cite the use of other standards during audit communications.

B.

If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.

C.

If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.

D.

If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.

How do data analysis technologies affect internal audit testing?

A.

They improve the effectiveness of spot check testing techniques

B.

They allow greater insight into high risk areas.

C.

They reduce the overall scope of the audit engagement.

D.

They increase the internal auditor's objectivity

Which of the following statements best describes the frameworks set forth by the International Standards Organization?

A.

Globally accepted standards for industries and processes.

B.

Bridging the gaps among control requirements, technical issues, and business risks.

C.

Practical guidance and benchmarks for all organizations that use information systems.

D.

Frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.

What is the most significant potential problem introduced by just-in-time inventory systems?

A.

They require significant computer resources.

B.

They are susceptible to supply-chain disruptions.

C.

They require complicated materials-supply contracts.

D.

They prevent manufacturers from scaling up or down to meet changing demands.

Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

A.

Observation.

B.

Inspection.

C.

Original cost.

D.

Vouching.

Which of the following actions is most likely to gain support for process change?

A.

Set clear objectives.

B.

Engage the various communities of practice within the organization.

C.

Demonstrate support from senior management.

D.

Establish key competencies.

Which of the following is an example of a physical control?

A.

Providing fire detection and suppression equipment

B.

Establishing a physical security policy and promoting it throughout the organization

C.

Performing business continuity and disaster recovery planning

D.

Keeping an offsite backup of the organization's critical data

The economic order quantity for inventory is higher for an organization that has:

A.

Lower annual unit sales.

B.

Higher fixed inventory ordering costs.

C.

Higher annual carrying costs as a percentage of inventory value.

D.

A higher purchase price per unit of inventory.

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?

A.

21 days.

B.

22 days.

C.

27 days.

D.

51 days.