Question 1

Which of the following are likely indicators of ineffective change management?

1. IT management is unable to predict how a change will impact interdependent systems or business processes.

2. There have been significant increases in trouble calls or in support hours logged by programmers.

3. There is a lack of turnover in the systems support and business analyst development groups.

4. Emergency changes that bypass the normal control process frequently are deemed necessary.

Options :

A : 1 and 3 only

B : 2 and 4 only

C : 1, 2, and 4 only

D : 1, 2, 3, and 4

Answer: C

Question 2

Which of the following statements is true regarding reversing entries in an accounting cycled

Options :

A : Reversing all previous closing adjustments is a mandatory step in the accounting cycle

B : Reversing entries should be completed at the end of the next accounting period after recording regular transactions of the period

C : Reversing entries are identical to the adjusting entries made in the previous period.

D : Reversing entries are the exact opposite of the adjustments made in the previous period.

Answer: D

Question 3

Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

Options :

A : The cost of goods sold for the period will be understated.

B : The cost of goods sold for the period will be overstated.

C : The net income for the period will be understated.

D : There will be no effect on the cost of goods sold or the net income for the period.

Answer: B

Question 4

After the team member who specialized in fraud investigations left the internal audit team, the chief audit executive decided to outsource fraud investigations to a third party service provider on an as needed basis. Which of the following is most likely to be a disadvantage of this outsourcing decision?

Options :

A : Cost.

B : Independence.

C : Familiarity.

D : Flexibility.

Answer: C

Question 5

Which of the following corporate social responsibility strategies is likely to be most effective in minimizing confrontations with influential activists and lobbyists?

Options :

A : Continually evaluate the needs and opinions of all stakeholder groups.

B : Ensure strict compliance with applicable laws and regulations to avoid incidents.

C : Maintain a comprehensive publicity campaign that highlights the organization-s efforts.

D : Increase goodwill through philanthropic activities among stakeholder communities.

Answer: A