IIA IIA-CIA-Part3 Quiz 21 Topic 7 Questions 101-105

Question: 1

Which of the following statements pertaining to a market skimming pricing strategy is not true?

AThe strategy is favored when unit costs fall with the increase in units produced.

BThe strategy is favored when buyers are relatively insensitive to price increases.

CThe strategy is favored when there is insufficient market capacity and competitors cannot increase market capacity.

DThe strategy is favored when high price is perceived as high quality.

Show Answer

Question: 2

Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

AThe internal auditor may cite the use of other standards during audit communications.

BIf the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.

CIf there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.

DIf there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.

Show Answer

Question: 3

In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?

AThe underlying causes of the risk.

BThe impact of the risk on the organization's objectives.

CThe risk levels of current and future events.

DThe potential for eliminating risk factors.

Show Answer

Question: 4

Organizational activities that complement each other and create a competitive advantage are called a:

AMerger.

BStrategic fit.

CJoint venture.

DStrategic goal.

Show Answer

Question: 5

If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?

AConform with all other parts of The IIA's Standards and provide appropriate disclosures.

BConform with all other parts of The IIA's Standards; there is no need to provide appropriate disclosures.

CContinue the engagement without conforming with the other parts of The IIA's Standards.

DWithdraw from the engagement.

Show Answer

IIA IIA-CIA-Part3 Quiz:21 Topic:7 Questions:101-105