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IIA Business Knowledge for Internal Auditing Sample Questions (Q168-Q173):
NEW QUESTION # 168
An organization and its trading partner rely on a computer-to-computer exchange of digital business documents. Which of the following best describes this scenario?
- A. Use of a database management system
- B. Use of electronic data Interchange
- C. Use of a local area network
- D. Use of a central processing unit
Answer: B
NEW QUESTION # 169
At one organization, the specific terms of a contract require both the promisor end promise to sign the contract in the presence of an independent witness.
What is the primary role to the witness to these signatures?
- A. A witness verifies that the contract was signed with the free consent of the promisor and promise.
- B. A witness ensures the completeness of the contract between the promisor and promise.
- C. A witness validates that the signatures on the contract were signed by tire promisor and promise.
- D. A witness verifies the quantities of the copies signed.
Answer: C
NEW QUESTION # 170
For control purposes, which of the following should be organizationally segregated from the computer operations function?
- A. Surveillance of screen display messages.
- B. Systems development.
- C. Data conversion.
- D. Minor maintenance according to a schedule.
Answer: B
Explanation:
Systems development is performed by systems analysts and application programmers.
NEW QUESTION # 171
Which of the following is true regarding an organization's relationship with external stakeholders?
- A. Disclosure laws tend to be consistent from one jurisdiction to another.
- B. Legal representation should be consulted before releasing internal audit information to other assurance
- C. There are several internationally recognized standards for dealing with financial donors.
- D. Specific guidance must be followed when interacting with nongovernmental organizations.
Answer: B
NEW QUESTION # 172
If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?
- A. The organization is efficient in using assets to generate revenue.
- B. Settlement of short-term obligations may become difficult.
- C. Collection policies of the organization are ineffective.
- D. Cash may be bed up in items not generating financial value.
Answer: D
NEW QUESTION # 173
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