Question 1

After purchasing shoes from an online retailer, a customer continued to receive additional unsolicited offers from the retailer and other retailers who offer similar products. Which of the following is the most likely control weakness demonstrated by the seller?

Options :

A : Excessive collecting of information

B : Application of social engineering.

C : Retention of incomplete information

D : Undue disclosure of information

Answer: D

Question 2

Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

Options :

A : Times interest earned, return on assets, and inventory turnover.

B : Accounts receivable turnover, inventory turnover in days, and the current ratio.

C : Accounts receivable turnover, return on assets, and the current ratio.

D : Inventory turnover in days, the current ratio, and return on equity.

Answer: B

Question 3

What kind of strategy would be most effective for an organization to adopt in order to implement a unique advertising campaign for selling identical product lines across all of its markets?

Options :

A : Export strategy.

B : Transnational strategy.

C : Multi-domestic strategy.

D : Globalization strategy.

Answer: C

Question 4

Which of the following describes a benefit of using data analytics during an audit engagement?

Options :

A : An increased number of data extracts obtained from IT personnel.

B : A reduced audit risk by focusing risk assessment and stratifying the population.

C : A broadened scope of assurance services through the increase of audit staff.

D : An increased performance level of data analysis that enables reduced time for audit planning.

Answer: B

Question 5

How can the concept of relevant cost help management with behavioral analysis?

Options :

A : It explains the assumption that both costs and revenues are linear through the relevant range.

B : It enables management to calculate a minimum number of units to produce and sell without having to incur a loss.

C : It enables management to predict how costs such as the depreciation of equipment will be affected by a change in business decisions.

D : It enables management to make business decisions, as it explains the cost that will be incurred for a given course of action

Answer: D

Free IIA-CIA-Part3 Mock Exam – Practice Online Confidently

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