A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of...
Independent verification of data integrity and accuracy.A . 1, 2, and 3B . 1, 2, and 4C . 1, 3, and 4D . 2, 3, and 4View AnswerAnswer: A
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 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...
Determine whether a cost/benefit analysis was performed for all related projects.A . 1 and 3.B . 1 and 4.C . 2 and 3.D . 2 and 4.View AnswerAnswer: A
According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?A . To ensure that adequate controls exist to prevent any...
Which of the following statements pertaining to a market skimming pricing strategy is not true?A . The strategy is favored when unit costs fall with the increase in units produced.B . The strategy is...
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...
Which of the following corporate social responsibility strategies is likely to be most effective in minimizing confrontations with influential activists and lobbyists?A . Continually evaluate the needs and opinions of all stakeholder groups.B ....
The first stage in the development of a crisis management program is to:A . Formulate contingency plans.B . Conduct a risk analysis.C . Create a crisis management team.D . Practice the response to a...
