IIA IIA-CIA-Part2 Quiz 97 Topic 8 Questions 481-485

Question: 1

The engagement work most likely to yield relevant information for determining the adequacy of an organization's "disaster-recovery plan" should focus on

AThe completeness of the plan as to facilities, operations, communications, security, and data processing.

BThe sufficiency of the list of replacement equipment needed in event of a disaster.

CWhether the plan is in the planning or developmental stage.

DThe role of the internal audit activity in developing and testing the plan.

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Question: 2

In conducting an audit of an organization's disaster recovery capability, which of the

following would an auditor consider to be the most serious weakness?

ATests use recovery scripts.

BHot-site contracts are two years old.

CBackup media are stored on-site.

DOnly a few systems are tested annually.

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Question: 3

Internal auditors are often called upon to either perform or assist the external auditor in performing a due diligence review. A due diligence review may be a(n)

AReview of interim financial statements as directed by an underwriting firm.

BOperational audit of a division of an organization to determine if divisional management is complying with laws and regulations.

CReview of operations as requested by the audit committee to determine whether the operations comply with audit committee and organizational policies.

DReview of financial statements and related disclosures in conjunction with a potential acquisition.

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Question: 4

An organization is considering purchasing a small toxic waste disposal business. The internal auditors are part of the team doing a due diligence review for the acquisition. The scope of the internal auditors' work will most likely not include

AAn evaluation of the merit of lawsuits currently filed against the acquiree.

BA review of the acquiree's procedures for acceptance of waste material and
comparison with legal requirements.

CAnalysis of the acquiree's compliance with, and disclosure of, loan covenants.

DAssessment of the efficiency of the operations of the acquiree.

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Question: 5

An internal audit team is performing a due diligence audit to assess plans for a potential merger/acquisition. Which of the following would be the (east valid reason fora company to merge with or acquire another company?

ATo diversify risk.

BTo respond to government policy.

CTo reduce labor costs.

DTo increase stock prices.

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IIA IIA-CIA-Part2 Quiz:97 Topic:8 Questions:481-485