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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Information Technology | 20% | - Emerging Technologies and Data Analytics
|
| Topic 2: Information Security | 25% | - Information Security Principles
|
| Topic 3: Business Acumen | 35% | - Governance, Risk, and Control
|
| Topic 4: Financial Management | 20% | - Financial Accounting and Reporting
|
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NEW QUESTION # 430
Which of the following are likely indicators of ineffective change management?
* IT management is unable to predict how a change will impact interdependent systems or business processes.
* There have been significant increases in trouble calls or in support hours logged by programmers.
* There is a lack of turnover in the systems support and business analyst development groups.
* Emergency changes that bypass the normal control process frequently are deemed necessary.
Answer: A
Explanation:
Ineffective change management is indicated by poor impact analysis, increased production issues, and frequent emergency changes. If IT management cannot predict how changes affect interdependent systems or business processes, change risk assessment is weak. Increased trouble calls or programmer support hours suggest changes are causing defects, instability, or user disruption. Frequent emergency changes that bypass normal controls indicate inadequate planning, testing, or release management. A lack of turnover in systems support and business analyst groups is not a negative indicator; stability may actually support institutional knowledge. Internal auditors reviewing change management should evaluate authorization, testing, segregation of duties, migration controls, emergency change approval, backout plans, and post- implementation review. Therefore, items 1, 2, and 4 are correct, making Option C the answer.
NEW QUESTION # 431
Selling film for use with a camera is an example of which product-mix pricing strategy?
Answer: A
Explanation:
Captive products are those that must be used along with the main product. Sellers often make their money on the captive products, rather than on the main product that is sold at a low price. The captive products will therefore be priced well above the storage and delivery costs.
NEW QUESTION # 432
Plantation should treat Lease B as a(n):
Answer: D
Explanation:
A finance lease is one in which the risks and rewards of ownership are transferred to the lessee. For accounting purposes, the lessee treats a finance lease as similar to the purchase of an asset capitalized at the fair value of the leased asset or, if lower the present value of the minimum lease payments. The lessee's minimum lease payments include the required payments, excluding contingent rent and executor costing taxes and insurance), plus any amounts guaranteed by the lessee or a related party. If a bargain purchase option exists, however, minimum lease payments equal the required payments plus the amount of the option. If the present value of the minimum lease payments calculated without guaranteed amounts or a bargain purchase option) is substantially all of the asset's fair value, the lease normally is accounted for as a finance lease. Given that the executor costs associated with the lease are to be paid by the lesser.
A portion of the lease rental price is for those costs. not for the asset. Consequently the annual minimum lease payment equals the annual payment minus the executory costs. or US $3,500$4,000 yearly rental - $500). The present value of the minimum lease payments is therefore US $9,590 $3,500 x 2.74), which is substantially all of the fair value of the asset. Thus the lease should be capitalized. The appropriate amount of the initial asset value is the present value of the minimum lease payments calculated above.
NEW QUESTION # 433
An organization recently documented its procedures for recovering systems and data after a disaster How are these documented procedures most likely to be used during a disaster simulation exercise''
Answer: B
NEW QUESTION # 434
An organization decided to reorganize into a flatter structure. Which of the following changes would be expected with this new structure?
Answer: C
Explanation:
A flatter organizational structure reduces hierarchical levels and promotes greater autonomy for employees.
The primary benefit is cost reduction due to fewer management layers and streamlined decision-making.
Fewer Management Layers - Reduces the number of mid-level managers, decreasing salary expenses.
Increased Operational Efficiency - Less bureaucracy leads to faster decision-making, lowering administrative costs.
Encourages Employee Autonomy - Reduces dependence on supervision, improving productivity.
B). Slower decision-making at the senior executive level - Incorrect because flatter structures lead to faster decision-making due to fewer approval levels.
C). Limited creative freedom in lower-level managers - Incorrect because flatter structures provide more autonomy and innovation opportunities.
D). Senior-level executives more focused on short-term, routine decision-making - Incorrect because executives in a flatter structure focus on strategic, high-level decisions, delegating routine tasks.
IIA's GTAG on Governance and Risk Management - Discusses the financial and operational impacts of different organizational structures.
COSO's Enterprise Risk Management (ERM) Framework - Emphasizes how flatter structures reduce operational inefficiencies and costs.
COBIT 2019 (Governance Framework) - Highlights the impact of organizational structure on financial performance.
Why Lower Costs is the Correct Answer?Why Not the Other Options?IIA References:
NEW QUESTION # 435
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