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NEW QUESTION 43
Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?

A. The risk that users try to bypass controls and do not install required software updates.B. The risk that smart devices can be lost or stolen due to their mobile nature.C. The risk that an organization intrusively monitors personal information stored on smart devices.D. The risk that proprietary information is not deleted from the device when an employee leaves.

Answer: C

 

NEW QUESTION 44
Which of the following should software auditors do when reporting internal audit findings related to enterprise wide resource planning?

A. Include technical details to support IT issuesB. Draft separate audit reports for business and IT managementC. Connect IT audit findings to business issuesD. Include an opinion on financial reporting accuracy and completeness

Answer: B

 

NEW QUESTION 45
Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

A. Vouching.B. Original cost.C. Observation.D. Inspection.

Answer: D

 

NEW QUESTION 46
An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?

A. 90 days.B. 26 days.C. 110 days.D. 100 days.

Answer: A

 

NEW QUESTION 47
A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

A. Involve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.B. Develop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.C. Develop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.D. Adopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.

Answer: C

 

NEW QUESTION 48
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