IIA IIA-CIA-Part3 Quiz 49 Topic 1 Questions 241-245

Question: 1

Which of the following is a characteristic of just-in-time inventory management systems?

AUsers determine the optimal level of safety stocks.

BThey are applicable only to large organizations.

CThey do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.

DThey rely heavily on high quality materials.

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Question: 2

Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?

AUse of a formal systems development lifecycle.

BEnd-user involvement.

CAdequate software documentation.

DFormalized non-regression testing phase.

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Question: 3

Which of the following statements is true regarding outsourced business processes?

AOutsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.

BGenerally, independence is improved when the internal audit activity reviews outsourced business processes.

CThe key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.

DThe system of internal controls may be better and more efficient when the business process is
outsourced compared to internally sourced.

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Question: 4

Which stage in the industry life cycle is characterized by many different product variations?

AIntroduction.

BGrowth.

CMaturity.

DDecline.

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Question: 5

A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:

ASort on product identification code and identify missing product identification codes.

BReview store identification code and identify missing product identification codes.

CCompare product identification codes for consecutive periods.

DCompare product identification codes by store for consecutive periods.

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IIA IIA-CIA-Part3 Quiz:49 Topic:1 Questions:241-245