IIA IIA-CIA-Part2 Quiz 93 Topic 9 Questions 461-465

Question: 1

Managerial performance may be measured in many ways. For example, an internal nonfinancial measure is

AMarket share.

BDelivery performance.

CCustomer satisfaction.

DManufacturing lead time.

Show Answer

Question: 2

An organization's managerial decision-making model for capital budgeting is based on the net present value of discounted cash flows. The same organization's managerial performance evaluation model is based on annual divisional return on investment. Which of the following is true?

ADivisional managers are likely to maximize the measures in the decision-making model.

BDivisional managers are likely to maximize the measures in the performance evaluation model.

CThe manager has an incentive to accept a project with a positive net present value that initially has a negative effect on net income.

DThe use of models with different criteria promotes goal congruence.

Show Answer

Question: 3

On a balanced scorecard, which of the following is not a customer measure?

AMarket share.

BEconomic value added.

CService response time.

DWarranty expense.

Show Answer

Question: 4

Reengineering is the thorough analysis, fundamental rethinking, and complete redesign of essential business processes. The intended result is a dramatic improvement in service, quality, speed, and cost. An internal auditor's involvement in reengineering should include all of the following except

ADetermining whether the process has senior management's support.

BRecommending areas for consideration.

CDeveloping audit plans for the new system.

DDirecting the implementation of the redesigned process.

Show Answer

Question: 5

Monitoring is an important component of internal control. Which of the following items

would not be an example of monitoring?

AManagement regularly compares divisional performance with budgets for the division.

BData processing management regularly generates exception reports for unusual transactions or volumes of transactions and follows up with investigation as to causes.

CData processing management regularly reconciles batch control totals for items processed with batch controls for items submitted.

DManagement has asked internal auditing to perform regular audits of the controls over cash processing.

Show Answer

IIA IIA-CIA-Part2 Quiz:93 Topic:9 Questions:461-465