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NEW QUESTION 45
Tools that should be in place to ensure data integrity include III:
I. Monitoring software
II. Change controls
III. Trend analysis
IV.
IV Automatic timeout
- A. I, III, and IV only.
- B. II, III, and IV only.
- C. I and III only.
- D. I, II, III, and IV.
Answer: D
Explanation:
The internal auditor should evaluate controls over data integrity. Tools that should be in place in order to ensure data integrity include intrusion management monitoring software, automatic timeout, and trend analysis), physical security for e-commerce servers, change controls, and reconciliation.
NEW QUESTION 46
Which of the following is a noncash item?
- A. Administrative expense.
- B. Income tax expense.
- C. Interest expense.
- D. Depreciation expense.
Answer: B
Explanation:
Expenses are defined as decreases in economic benefits during the accounting period in the forum of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants." Expense includes losses. Thus, losses are not treated as separate elements. Expenses include items arising in the course of ordinary activities. Losses meet the definition of expenses but may or may not occur in the course of ordinary activities. For example, losses may result from the sale of noncurrent assets of from natural disasters.
NEW QUESTION 47
An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:
- A. Increased cost and complexity of network traffic.
- B. Confusion about where customer data are stored.
- C. Lack of awareness of the state of processing.
- D. Interference of the mirrored data with the original source data.
Answer: A
NEW QUESTION 48
In which of the following scenarios would transfer pricing be used?
- A. Company A does not own Company B. Company A charges Company B a fee to sell Company B's goods without taking ownership of the goods.
- B. Company A owns Company B; Company B sells goods to Company A.
- C. Company A owns both Company B and Company C; all three companies sell goods to the public.
- D. Company A moves goods internally from one location to another.
Answer: B
NEW QUESTION 49
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