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NEW QUESTION 51
Which of the following does not provide operational assurance that a computer system is operating properly?

• A. Performing a system audit.
• B. Testing policy compliance.
• C. Making system changes.
• D. Conducting system monitoring.

Answer: C

NEW QUESTION 52
The board of directors wants to implement an incentive program for senior management that is specifically tied to the long-term health of the organization. Which of the following methods of compensation would be best to achieve this goal?

• A. Commissions.
• B. Stock options
• C. Allowances
• D. Gain-sharing bonuses.

Answer: B

NEW QUESTION 53
In a business combination, the sum of the amounts assigned by the acquiring entity to assets acquired and liabilities incurred and assumed exceeds the consideration paid for the acquired entity. The excess should be reported as a:

• A. Reduction of the amounts assigned to current assets and a deferred credit for any unallocated portion.
• B. Gain immediately in profit or loss.
• C. Deferred credit
• D. Pro rata reduction of the amounts assigned to all acquired assets and a gain for any unallocated portion.

Answer: B

Explanation:
In a business combination, any excess of the fair value of the net assets acquired over the sum of the considerations transferred, any noncontrolling interests, and any previously held equity interest must be recognized immediately in profit or loss as a gain. Before concluding that the identification and measurement of the acquirer's assets, liabilities etc must be reassessed.

NEW QUESTION 54
What is the overall audit objective when auditing an e-commerce activity?

• A. To ensure that all e-commerce processes are adequate to fulfill their intended objectives.
• B. To ensure that all e-commerce processes have effective internal controls.
• C. To ensure that all e-commerce processes have efficient internal controls.
• D. To ensure that all e-commerce processes meet the functionality requirements of the end users.

Answer: B

Explanation:
According to PA 2100-6, when auditing e-commerce activities, the overall audit objective should be to ensure that all e-commerce processes have effective internal controls.

NEW QUESTION 55
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