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IIA Business Knowledge for Internal Auditing Sample Questions (Q24-Q29):
NEW QUESTION # 24
A client is concerned that a power outage or disaster could impair the computer hardware's ability to function as designed. The client desires off-site backup hardware facilities that are fully configured and ready to operate within several hours. The client most likely should consider a:
- A. Warm site.
- B. Hot site.
- C. Cool site.
- D. Cold site.
Answer: B
Explanation:
A hot site is a service bureau that is a fully operational processing facility and is promptly available in the case of a power outage or disaster.
NEW QUESTION # 25
Which of the following factors is most likely to lead to a lack of cohesiveness in a project team?
- A. Common threat
- B. Competition
- C. Prestige
- D. Small size.
Answer: C
NEW QUESTION # 26
Which of the following is the method of adding a standard markup to the cost of the product?
- A. Price skimming.
- B. Penetration pricing.
- C. Going-rate pricing.
- D. Cost-based pricing.
Answer: D
Explanation:
Cost-based pricing is a pricing method in which a standard markup or target profit is added to the cost of the product in determining the product's sales price.
NEW QUESTION # 27
Management's enthusiasm for computer security seems to vary with changes in the environment, particularly the occurrence of other computer disasters. Which of the following concepts should be addressed when making a comprehensive recommendation regarding the costs and benefits of computer security?
I. Potential loss if security is not implemented
II. Probability of occurrences
III.
Cost and effectiveness of the implementation and operation of computer security
- A. III only.
- B. I, II, and III.
- C. I only.
- D. I and II only.
Answer: B
Explanation:
Potential loss is the amount of dollar damages associated with a security problem or loss of assets. Potential loss times the probability of occurrence is an estimate expected value) of the exposure associated with lack of security. It represents a potential benefit associated with the implementation of security measures. To perform a cost-benefit analysis, the costs should be considered. Thus, all three items need to be addressed.
NEW QUESTION # 28
A direct effect of imposing a protective tariff on an item for which there are both foreign and domestic producers is that domestic producers will sell, <List A> of the item while domestic consumers consume ,List B> of the item.
- A. Option B
- B. Option C
- C. Option A
- D. Option D
Answer: A
Explanation:
Domestic producers are not subject to the tariff and will therefore have a price advantage over their foreign competitors. However, absent such competition, the domestic price of the item will be higher. Domestic producers will sell more at a higher price, and domestic consumers will consume less following the price increase.
NEW QUESTION # 29
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