A bond that matures after one year has a face value of S250,000 and a coupon of $30,000. if the market price of the bond is 5265,000, which of the following would be the market interest rate?

Between 12.01 percent and 12.50 percent.

Which of the following is required in effective IT change management?

Change management follows a consistent process and is done in a controlled environment.

The sole responsibility for change management is assigned to an experienced and competent IT team

Change management follows a consistent process and is done in a controlled environment.

Internal audit participates in the implementation of change management throughout the organisation.

All changes to systems must be approved by the highest level of authority within an organization.

Which of the following statements is true regarding an investee that received a dividend distribution from an entity and is presumed to have little influence over the entity?

The investee must record the cash dividends as dividend revenue

The cash dividends received increase the investee investment account accordingly.

The investee must adjust the investment account by the ownership interest

The investment account is adjusted downward by the percentage of ownership.

The investee must record the cash dividends as dividend revenue

Which of the following is true of bond financing, compared to common stock, when alJ other variables are equal?

Higher company earnings per share.

Higher overall company earnings

Which of the following characteristics applies to an organization that adopts a flat structure?

The tower-level managers are encouraged to exercise creativity when solving problems

The structure is dispersed geographically

The hierarchy levels are more numerous.

The tower-level managers are encouraged to exercise creativity when solving problems

According to IIA guidance on IT, which of the following best describes a logical access control?

Maintain current role definitions to ensure appropriate segregation of duties

Require complex passwords to be established and changed quarterly

Require swipe cards to control entry into secure data centers.

Monitor access to the data center with closed circuit camera surveillance.

Maintain current role definitions to ensure appropriate segregation of duties

Which of the following performance measures includes both profits and investment base?

A contribution margin income statement by segment.

At an organization that uses a periodic inventory system, the accountant accidentally understated the organization s beginning inventory. How would the accountant's accident impact the income statement?

Cost of goods sold will be overstated and net income will be understated

Cost of goods sold will be understated and net income will be overstated.

Cost of goods sold will be overstated and net income will be understated

Cost of goods sold will be understated and there Wi-Fi be no impact on net income.

There will be no impact on cost of goods sold and net income will be overstated

With increased cybersecurity threats, which of the following should management consider to ensure that there is strong security governance in place?

Inventory of information assets

Limited sharing of data files with external parties.

In accounting, which of the following statements is true regarding the terms debit and credit?

Credit means an increase in an account and debit means a decrease

Debit indicates the right side of an account and credit the left side

Debit means an increase in an account and credit means a decrease.

Credit indicates the right side of an account and debit the left side.

Credit means an increase in an account and debit means a decrease

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?

Educating employees throughout the company to recognize phishing attacks.

Using whitelists and blacklists to manage network traffic.

Restricting access and blocking unauthorized access to the network

Educating employees throughout the company to recognize phishing attacks.

Which of the following statements is true regarding change management?

To protect the production environment, changes must be managed in a repeatable, defined, and predictable manner

The degree of risk associated with a proposed change determines whether the change request requires authorization

Program changes generally are developed and tested in the production environment.

Changes are only required by software programs

To protect the production environment, changes must be managed in a repeatable, defined, and predictable manner

An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two. Which of the following could be the reason for the decline in the net profit margin for year two?

The government increased the corporate tax rate

Cost of sales increased relative to sales.

Total sales increased relative to expenses.

The organization had a higher dividend payout rate in year two.

The government increased the corporate tax rate

Which of the following statements is true regarding user developed applications (UDAs) and traditional IT applications?

Unlike traditional IT applications. UDAs typically are developed with little consideration of controls.

UDAs arid traditional JT applications typically follow a similar development life cycle

A UDA usually includes system documentation to illustrate its functions, and IT-developed applications typically do not require such documentation.

Unlike traditional IT applications. UDAs typically are developed with little consideration of controls.

IT testing personnel usually review both types of applications thoroughly to ensure they were developed properly.

A multinational organization allows its employees to access work email via personal smart devices.However, users are required to consent to the installation of mobile device management (MDM) software that will remotely wipe data in case of theft or other incidents. Which of the following should the organization ensure in exchange for the employees' consent?

That personal data on the device cannot be accessed and deleted by system administrators.

That those employees who do not consent to MDM software cannot have an email account.

That personal data on the device cannot be accessed and deleted by system administrators.

That monitoring of employees' online activities is conducted in a covert way to avoid upsetting them.

That employee consent includes appropriate waivers regarding potential breaches to their privacy.

During disaster recovery planning, the organization established a recovery point objective. Which of the following best describes this concept?

The maximum tolerable data loss after the occurrence of an incident.

The maximum tolerable downtime after the occurrence of an incident.

The maximum tolerable data loss after the occurrence of an incident.

The maximum tolerable risk related to the occurrence of an incident

The minimum recovery resources needed after the occurrence of an incident

A company that supplies medications to large hospitals relies heavily on subcontractors to replenish any shortages within 24 hours. Where should internal auditors look for evidence that subcontractors are held responsible for this obligation?

The signed service-level agreement.

The third-party management risk register.

The signed service-level agreement.

The subcontractors' annual satisfaction survey.

Which of the following is an example of a contingent liability that a company should record?

The threat of a lawsuit by a competitor.

A potential assessment of additional income tax.

Possible product warranty costs.

The threat of a lawsuit by a competitor.

The remote possibility of a contract breach.

An organization has decided to allow its managers to use their own smart phones at work. With this change, which of the following is most important to Include In the IT department's comprehensive policies and procedures?

Required documentation of process for discontinuing use of the devices

Required removal of personal pictures and contacts.

Required documentation of expiration of contract with service provider.

Required sign-off on conflict of interest statement.

What security feature would Identity a legitimate employee using her own smart device to gam access to an application run by the organization?

Using a jailbroken or rooted smart device feature.

Using only smart devices previously approved by the organization.

Obtaining written assurance from the employee that security policies and procedures are followed.

Introducing a security question known only by the employee.

Which of the following statements Is true regarding the use of centralized authority to govern an organization?

Centralized managerial authority typically enhances certainty and consistency within an organization.

Fraud committed through collusion is more likely when authority is centralized.

Centralized managerial authority typically enhances certainty and consistency within an organization.

When authority is centralized, the alignment of activities to achieve business goals typically is decreased.

Using separation of duties to mitigate collusion is reduced only when authority is centralized.

When auditing databases, which of the following risks would an Internal auditor keep In mind In relation to database administrators?

The risk that database administrators set up personalized accounts for themselves, making the audit time consuming.

The risk that database administrators will disagree with temporarily preventing user access to the database for auditing purposes.

The risk that database administrators do not receive new patches from vendors that support database software in a timely fashion.

The risk that database administrators set up personalized accounts for themselves, making the audit time consuming.

The risk that database administrators could make hidden changes using privileged access.

Which of the following controls would enable management to receive timely feedback and help mitigate unforeseen risks?

Assign each employee a reasonable workload.

Measure product performance against an established standard.

Develop standard methods for performing established activities.

Require the grouping of activities under a single manager.

Assign each employee a reasonable workload.

IIA IIA-CIA-Part3 Practice Test 7 - Free Online Exam Questions 241-280

Which of the following is an example of a physical control designed to prevent security breaches?

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