IIA Internal Audit Function - IIA-CIA-Part3 Exam Practice Test

A manufacturer ss deciding whether to sell or process materials further. Which of the following costs would be relevant to this decision?

Which of the following scenarios indicates an effective use of financial leverage?

What is the primary risk associated with an organization adopting a decentralized structure?

An organization buys equity securities for trading purposes and sells them within a short time period. Which of the following is the correct way to value and report those securities at a financial statement date?

At which fundamental level of a quality assurance and improvement program is an opinion expressed about the entire spectrum of the internal audit function's work?

Which of the following principles is shared by both hierarchical and open organizational structures?
A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions.
A supervisor's span of control should not exceed seven subordinates.
Responsibility should be accompanied by adequate authority.
Employees at all levels should be empowered to make decisions.

Which of the following is a characteristic of big data?

Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic cate interchange?

A new chief audit executive (CAE) reviews long overdue audit recommendations, which have been repeatedly reported to senior management but have not been implemented, and is unsure which issues should be escalated to the board. Which of the following would serve as the best guide in this scenario?

An organization's account for office supplies on hand had a balance of $9,000 at the end of year one. During year two, the organization recorded an expense 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?

A new manager received computations of the internal fate of return regarding the project proposal. What should the manager compare the computation results to in order to determine whether the project is potentially acceptable?

Which of the following types of accounts must be closed at the end of the period?

Which of the following would best contribute to the success of a guest auditor program that allows people from other areas of the organization to serve as subject matter experts?