IIA IIA-CIA-Part3 Quiz 64 Topic 8 Questions 316-320

Question: 1

Which of the following statements is true regarding the capital budgeting procedure known as discounted payback period?

AIt calculates the overall value of a project

BIt ignores the time value of money

CIt calculates the time a project takes to break even.

DIt begins at time zero for the project.

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Question: 2

An internal auditor has been approved lo gather data directly horn the organization's relational database management system tor data analyses To collect the data which of the Wowing is most important for the auditor to know?

AStructured query language

BSpreadsheet software such as Excel

CData management system such as Oracle

DBasic web development

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Question: 3

While reviewing the contracts for a large city, the internal auditor learns that the organization contracted to perform trash collection is paid based on the number of bins emptied each week as a result, the city has minimal control over payments Which of the following actions should the auditor recommend to give the city greater control over payments?

AChange the contract so payment is based on the distances traveled by the contractor during collection.

BRenegotiate a lump-sum contract when the contract is up for renewal

CAssign a city employee to verify the number of bins emptied each day

DRequire that the contractor provide supervisory review of the number of bins emptied each day

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Question: 4

An organization uses the management-by-objectives method, whereby employee performance is based on defined goals Which of the following statements is true regarding this approach?

AIt is particularly helpful to management when the organization is facing rapid change

BIt is a more successful approach when adopted by mechanistic organizations

CIt is more successful when goal-setting is performed not only by management, but by an team members, including lower-level staff.

DIt is particularly successful in environments that are prone to having poor employer-employee relations

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Question: 5

When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?

AWhen a manufacturing organization has stable demand for its products.

BWhen an organization is subjected to strong political and social pressures

CWhen a manufacturer has reliable resources and suppliers

DWhen an organization is infrequently affected by technological advances

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IIA IIA-CIA-Part3 Quiz:64 Topic:8 Questions:316-320