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NEW QUESTION # 464
During an internal audit engagement, it was found that several vendors were on a government sanctions list and must no longer be traded with. Which of the following would most effectively mitigate the risk of noncompliance with sanctions lists that are updated regularly?
Answer: A
Explanation:
The most effective mitigation is to embed ongoing controls within vendor management processes to ensure that both new and existing vendors are continuously screened against updated sanctions lists. This creates a sustainable and automated compliance mechanism.
Option A is reactive and does not address future compliance. Option B only addresses onboarding of new vendors but ignores existing ones. Option D undermines compliance obligations and does not mitigate risk.
Reference:
IIA Global Technology Audit Guide (GTAG): Auditing Third-Party Risk; IIA Standards - Standard 2130:
Control.
NEW QUESTION # 465
Which of the following represents the greatest exposure to the integrity of electronic funds transfer data transmitted from a remote terminal?
Answer: B
Explanation:
Leased telephone circuits represent a direct exposure to the risk of breached
data integrity.
They use public lines that c. an be easily identified and tapped.
NEW QUESTION # 466
The following data on variables x and y was collected from June to October.
The correlation coefficient between variables x and y is nearest to:
Answer: C
Explanation:
The simplest way to solve this problem is to use a scatter diagram:
The data points appear to form a straight line with a negative slope. Thus,-1 is the best estimate of the coefficient of correlation.
NEW QUESTION # 467
The trough of a business cycle is generally characterized by:
Answer: A
Explanation:
There are four phases of a business cycle: trough, recovery, peak, and recession. The trough is marked by low levels of economic activity and underuse of resources. Investors are unwilling to risk new investments in productive capacity.
NEW QUESTION # 468
Which of the following best describes a transformational leader, as opposed to a transactional leader?
Answer: B
Explanation:
A transformational leader focuses on inspiring and motivating employees to exceed expectations, emphasizing vision, innovation, and long-term goals rather than just rule enforcement or performance monitoring.
(A) The leader searches for deviations from the rules and standards and intervenes when deviations exist.
Incorrect: This describes a transactional leader, who focuses on correcting errors and enforcing rules rather than inspiring employees.
(B) The leader intervenes only when performance standards are not met.
Incorrect: This describes a passive transactional leader, who waits for issues before taking action.
(C) The leader intervenes to communicate high expectations. (Correct Answer) Transformational leaders set high expectations, inspire employees to achieve them, and foster a culture of continuous improvement.
IIA Standard 2110 - Governance highlights the importance of leadership in driving organizational performance.
Transformational leadership aligns with COSO's principles of strong governance and strategic vision.
(D) The leader does not intervene to promote problem-solving.
Incorrect: A transformational leader actively promotes problem-solving by encouraging innovation and continuous improvement.
IIA Standard 2110 - Governance: Recognizes leadership's role in fostering a strong ethical and performance- driven culture.
COSO ERM - Governance and Culture: Highlights leadership's role in shaping strategic direction.
Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (C) because a transformational leader inspires employees by setting high expectations and motivating them to achieve organizational goals.
NEW QUESTION # 469
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