Q68. Which of the following statements is correct regarding corporate compensation systems and related bonuses?
1. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
2. Compensation systems are not part of an organization’s control system and should not be reported as such.
3. An audit of an organization’s compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

Q69. Which of me following responsibilities would ordinary fall under the help desk function of an organization?

Q70. On September 22, Year 1, a corporation purchased merchandise from an unaffiliated foreign entity for 10.000 units of the foreign entity’s local currency. On that date, the spot rate was US $.55. The corporation paid the bill in full on March 20. Year 2, when the spot rate was US $.65. The closing rate was US $.70 on December 31, Year 1. What amount should the corporation report as a foreign currency transaction loss in its income statement for the year ended December 31, Year 1?

Q71. 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?

Q72. Program documentation is a control designed primarily to ensure that:

Q73. An entity has US $100 of current assets, US $100 of fixed assets, US $100 of debt, and US $100 of equity. If it then leases a US $75 asset in a(n) ,List A, lease agreement, the debt-to-assets ratio of the entity will be <List B>

Q74. Which of the following is a result of Implementing on e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and biting?

Q75. Which of the following should an organization consider when developing strategic
objectives for its business processes?
1.Contribution to the success of the organization.
2.Reliability of operational information.
3.Behaviors and actions expected of employees.
4.How inputs combine with outputs to generate activities.

Q76. Which of the following steps should an internal auditor take during an audit of an organization’s business continuity plans?
1.Evaluate the business continuity plans for adequacy and currency.
2.Prepare a business impact analysis regarding the loss of critical business.
3.Identify key personnel who will be required to implement the plans.
4.Identify and prioritize the resources required to support critical business processes.

Q77. The estimated demand for pretzels at the next home football game using an expected value approach is:

Q78. Shown below is a forecast of sales for the first 4 months of the year all amounts are in thousands of dollars).

On average, 50% of credit sales are paid for in the month of sale, 30% in the month following the sale, and the remainder is paid 2 months after the month of sale. Assuming there are no bad debts, what is the expected cash inflow in March?

Q79. According to lIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?

Q80. The company receives a special order for 10,000 units at US $7.60. Variable selling cost for each of these 10,000 units will be US $1.20. This special order will not affect regular sales of 75.000 units. If the company accepts this special order, its profit will:

Q81. An internal auditor is reviewing key phases of a software development project. Which of the following would; the auditor most likely use to measure the project team’s performance related to how project tasks are completed?

Q82. According to IIA guidance, which of the following steps are most important for an internal auditor to perform when evaluating an organization’s social and environmental impact on the local community?
Determine whether previous incidents have been reported, managed, and
resolved.
Determine whether a business contingency plan exists.
Determine the extent of transparency in reporting.
Determine whether a cost/benefit analysis was performed for all related projects.

Q83. Data regarding four different products manufactured by an organization are presented as follows. Direct material and direct labor are readily available from the respective resource markets.
However, the manufacturer is limited to a maximum of 3,000 machine hours per month.

Units Produced per Machine Hour: A: 3 B: 4 C: 2 D: 3
The product that is the most profitable for the manufacturer in this situation is

Q84. A tax is regressive if:

Q85. Which of the following is an example of a contingent liability?

Q86. An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

Q87. A reader of a statement of cash flows wishes to analyze the major classes of gross cash receipts and gross cash payments from operating activities. Which methods of reporting cash flows from operating activities will supply that information?

Q88. If the market rate of interest is [List A] the coupon rate when bonds are issued, then the bonds will sell in the market at a price [List B] the face value and the issuing firm will record a [List C] on bonds payable.

Q89. The best evidence that contingency planning is effective is to have:

Q90. While conducting’ audit procedures at the organization’s data center an internal auditor noticed the following:
– Backup media was located on data center shelves.
– Backup media was organized by date.
– Backup schedule was one week in duration.
The system administrator was able to present restore logs.
Which of the following is reasonable for the internal auditor to conclude?

Q91. Which of the following data security policies is most likely to be the result of a data privacy law?

Q92. Which of the following statements is correct regarding risk analysis?