IIA IIA-CIA-Part3 Quiz 47 Topic 12 Questions 231-235

Question: 1

Preferred stock is less risky for investors than is common stock because:

ACommon stock pays dividends as a stated percentage of face value.

BCommon stock has priority over preferred stock with regard to earnings and assets.

CPreferred dividends are usually cumulative.

DPreferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.

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Question: 2

Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?

ASubmit batches of test transactions through the current system and verify with expected results.

BUse a test program to simulate the normal data entering process.

CSelect a sample of records from the database and ensure it matches supporting documentation.

DEvaluate compliance with the organization's change management process.

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Question: 3

According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?

ADetermine the optimal amount of resources for the organization to invest in CSR.

BAlign CSR program objectives with the organization's strategic plan.

CIntegrate CSR activities into the organization's decision-making process.

DDetermine whether the organization has an appropriate policy governing its CSR activities.

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Question: 4

In mergers and acquisitions, which of the following is an example of a horizontal combination?

ADairy manufacturing company taking over a large dairy farm.

BA movie producer acquires movie theaters.

CA petroleum processing company acquires an agro-processing firm.

DA baker taking over a competitor.

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Question: 5

An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?

AMonitoring.

BControl activities.

CRisk assessment.

DControl environment.

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IIA IIA-CIA-Part3 Quiz:47 Topic:12 Questions:231-235