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IIA Internal Audit Function Sample Questions (Q354-Q359):

NEW QUESTION # 354
Which of the following statements is true regarding cost-volume-profit analysis?

A. Following breakover1, he operating income will increase by the excess of fixed costs less the variable costs per units sold.
B. Breakeven point is the amount of units sold to cover variable costs.
C. Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.
D. Breakeven occurs when the contribution margin covers fixed costs.

Answer: D

NEW QUESTION # 355
In an order-entry system in which manually-prepared source documents are entered online for immediate processing, which of the following is an example of an appropriate input-output control?

A. Hash total verification.
B. Check-digit validation procedure.
C. Password authorization procedure
D. Backup and recovery procedures.

Answer: B

Explanation:
Self-checking digits may be used to detect incorrect identification numbers. The digit is generated by applying an algorithm to the ID number. During the input process, the check digit is recomputed by applying the same algorithm to the code actually entered.

NEW QUESTION # 356
A company manufactures banana hooks for retail sale. The bill of materials for this item and the parts inventory for each material required are as follows:

An incoming order calls for delivery of 2.000 banana hooks in 2 weeks. The company has 200 finished banana hooks in current inventory. If no safety stocks are required for inventory, what are the company's net requirements for swag hooks and screws needed to fill this order?

A. Option A
B. Option C
C. Option D
D. Option C

Answer: B

Explanation:
The company needs 1,800 banana hooks (2,000 - 200) and therefore 1,800 swag hooks (1
* 1,800) and 3,600 wood screws (2 x 1,800). Given that 300 swag hooks and 400 wood screws are on hand, the company must obtain 1,500 swag hooks (1,800 - 300) and 3,200 wood screws (3,600 -400).

NEW QUESTION # 357
Which of the following is the best program for the protection of a company's vital
information resources from computer viruses?

A. Stringent corporate hiring policies for staff working with computerized functions_
B. Existence of a software program for virus prevention.
C. Physical protection devices in use for hardware, software, and library facilities.
D. Prudent management policies and procedures instituted in conjunction with technological safeguards.

Answer: D

Explanation:
Acceptably safe computing can be achieved by carefully crafted policies and procedures used in conjunction with antivirus and access control software.

NEW QUESTION # 358
Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?

A. Firewall and other network penmeter protection tools.
B. Comprehensive service level agreements with vendors.
C. Monitoring for vulnerabilities based on industry intelligence
D. A list of trustworthy good traffic and a list of unauthorized blocked traffic.

Answer: A

NEW QUESTION # 359
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