IIA-CIA-Part3 Reviews Questions

Business Knowledge for Internal Auditing Questions and Answers

Question 33

Which of the following can be viewed as a potential benefit of an enterprisewide resource planning system?

Real-time processing of transactions and elimination of data redundancies.

Fewer data processing errors and more efficient data exchange with trading partners.

Exploitation of opportunities and mitigation of risks associated with e-business.

Integration of business processes into multiple operating environments and databases.

Question 34

Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

Cost method.

Equity method .

Consolidation method.

Fair value method.

Question 35

When examining; an organization's strategic plan, an internal auditor should expect to find which of the following components?

Identification of achievable goals and timelines

Analysis of the competitive environment.

Plan for the procurement of resources

Plan for progress reporting and oversight.

Question 36

Which of the following is on advantage of a decentralized organizational structure, as opposed to a centralized structure?

Greater cost-effectiveness

Increased economies of scale

Larger talent pool

Strong internal controls