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IIA Business Knowledge for Internal Auditing Sample Questions (Q89-Q94):

NEW QUESTION # 89
Which of the following control frameworks was acknowledged by the U.S. Securities and Exchange Commission as an appropriate model for designing internal controls under the requirements of the Sarbanes-Oxley Act of 2002?

A. COBIT
B. COSO
C. eSAC
D. GTAG

Answer: B

Explanation:
The importance and durability of the COSO Framework was reinforced when the U.S. Securities and Exchange Commission acknowledged it as an appropriate model for designing internal controls under the requirements of the Sarbanes-Oxley Act of 2002.

NEW QUESTION # 90
To be more responsive to its customers, a bank wants a system that will permit account representatives to consolidate information about all the a-r-punts belonging to individual customers. Bank management is willing to experiment with different approach approaches because the requirements are evolving rapidly. The best development approach for this system is:

A. System development life cycle model.
B. Prototyping.
C. Hierarchy-input-process-output
D. Structured analysis and design technique.

Answer: B

Explanation:
Prototyping is an approach that involves creating a working model of the system requested, demonstrating it for the user, obtaining feedback. and making changes to the underlying code. This process repeats through several iterations until the user is satisfied with the system's functionality. Formerly, this approach was derided as being wasteful of resources and tending to produce unstable systems, but with vastly increased processing power and high-productivity development tools. prototyping can, in some cases, be an efficient means of systems development.

NEW QUESTION # 91
Inefficient use of excess computer equipment can be controlled by

A. Exception reporting.
B. Contingency planning.
C. System feasibility studies.
D. Capacity planning.

Answer: D

Explanation:
Planning is as important for the information systems function as for any other part of the organization. The master plan for this function should be consistent with the strategic plan for the organization and include goals and objectives. an inventory of current capacity, and a forecast of future needs. The plan is the basis for determining hardware needs.

NEW QUESTION # 92
Which of the following will allow a manufacturer with limited resources to maximize profits?

A. Linear programming.
B. Regression analysis.
C. The Delphi technique.
D. Exponential smoothing.

Answer: A

Explanation:
Linear programming is a technique used to optimize an objective function, that is, to maximize a revenue or profit function or to minimize a cost function, subject to constraints, e.g., limited scarce) resources or minimum/maximum levels of production, performance, etc.
In business, linear programming is used for planning resource allocations. Managers are often faced with problems of selecting the most profitable or least costly way to use available resources.

NEW QUESTION # 93
Which of the following is a strategy that organizations can use to stimulate innovation?
1.Source from the most advanced suppliers.
2.Establish employee programs that reward initiative.
3.Identify best practice competitors as motivators.
4.Ensure that performance targets are always achieved.

A. 1, 2, 3, and 4
B. 1, 2, and 3 only
C. 1 and 3 only
D. 2 and 4 only

Answer: B

NEW QUESTION # 94
......

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