IIA-CIA-Part1 practice questions, page 41 of 47, with answer review and explanations.
Question 201
Which of the following would be the best example of a monitoring control for a chain of restaurants?
Each restaurant manager reconciles the cash received with the food orders recorded on the computer.
All food orders must be entered through the computer, and there is segregation of duties between the food servers and the cooks.
Corporate management prepares a detailed analysis of gross margin per restaurant and investigates those showing a significantly lower gross margin.
Proof of bank deposit is transmitted to corporate headquarters on a daily basis.
Question 202
Why is the concept of residual risk important?
Because residual risk is difficult to measure.
Because residual risk is all of the risk that remains after controls are established.
Because the cost-benefit analysis supporting control design is part of the measure of residual risk.
Because the risk that remains after control design and implementation needs to be acceptable to senior management.
Question 203
The first stage in the development of a crisis management program is to:
Formulate contingency plans.
Conduct a risk analysis.
Create a crisis management team.
Practice the response to a crisis.
Question 204
A major corporation is considering significant organizational changes. Which of the following groups would not be responsible for implementing these changes?
Employees.
Senior management.
Common stockholders.
Outside consultants.
Question 205
According to the International Professional Practices Framework, a review team must express an opinion on which of the following when performing an external assessment of an internal audit activity? I. Conformance with the Standards and IIA Code of Ethics. II. Effectiveness of continuous improvement activities. III. Feedback from internal audit customers and other stakeholder groups. IV. Efficiency and effectiveness of the internal audit activity's administration processes.