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NEW QUESTION 40
A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:

• A. Established procedures to prevent and detect unauthorized changes to data files.
• B. Adequate segregation of duties between data processing controls and file security controls.
• C. Emergency and disaster recovery procedures and maintenance agreements in place to ensure continuity of operations.
• D. Documented procedures for remote job entry and for local data file retention.

Answer: D

NEW QUESTION 41
According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?
1) Every employee generally has a responsibility for ensuring the success of CSR objectives.
2) The board has overall responsibility for the effectiveness of internal control processes associated with CSR.
3) Public reporting on the CSR governance process is expected.
4) Organizations generally have flexibility regarding what is included in a CSR program.

• A. 1, 2, and 4 only
• B. 1, 3, and 4 only
• C. 1, 2, and 3 only
• D. 2, 3, and 4 only

Answer: A

NEW QUESTION 42
An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement. Which of the following approaches is most appropriate to address this concern?

• A. The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.
• B. The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.
• C. The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.
• D. The organization should work with the service provider to review the current agreement and expectations relating to objectives, processes, and overall performance.

Answer: C

NEW QUESTION 43
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.

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 4 only
• D. 3 and 4 only

Answer: B

NEW QUESTION 44
An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?

• A. The capital accounts of the partners should be increased by the fair market value of their contribution
• B. The capital accounts should be increased using a weighted average based on the current percentage of ownership
• C. The capital accounts of the partners should be increased by the original cost of the contributed equipment.
• D. No action is needed as the capital account of each partner was increased by the correct amount

Answer: A

NEW QUESTION 45
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