IIA IIA-CIA-Part3 Quiz 23 Topic 10 Questions 111-115

Question: 1

Which of the following costs would be incurred in an inventory stockout?

ALost sales, lost customers, and backorder.

BLost sales, safety stock, and backorder.

CLost customers, safety stock, and backorder.

DLost sales, lost customers, and safety stock.

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Question: 2

Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?

ADecentralized organizations are more focused on organizational goals.

BDecentralized organizations streamline organizational structure.

CDecentralized organizations tend to be less expensive to operate.

DDecentralized organizations tend to be more responsive to market changes.

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Question: 3

The most important reason to use risk assessment in audit planning is to:

AIdentify redundant controls.

BImprove budgeting accuracy.

CEnhance assurance provided to management.

DAssist in developing audit programs.

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Question: 4

The main reason to establish internal controls in an organization is to:

AEncourage compliance with policies and procedures.

BSafeguard the resources of the organization.

CEnsure the accuracy, reliability, and timeliness of information.

DProvide reasonable assurance on the achievement of objectives.

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Question: 5

An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

ALack of awareness of the state of processing.

BIncreased cost and complexity of network traffic.

CInterference of the mirrored data with the original source data.

DConfusion about where customer data are stored.

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IIA IIA-CIA-Part3 Quiz:23 Topic:10 Questions:111-115