EMT Practice Test

1. Question Content...

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Question1: With regard to disaster recovery planning, which of the following would most likely involve stakeholders from several departments?

Question2: Which of the following statements is true regarding reversing entries in an accounting cycled

Question3: An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

Question4: The audit committee of a global corporation has mandated a change in the organization's business ethics policy. Which of the following approaches describes the best way to accomplish the policy's diffusion worldwide?

Question5: For an engineering department with a total quality management program, important elements of quality management include all of the following except:

Question6: An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:

Question7: Which of the following is most important for an internal auditor to check with regard to the database version?

Question8: Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?
1. The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2. The IAA must assess whether the IT governance of the organization supports the organization's strategies and objectives.
3. The IAA may assess whether the IT governance of the organization supports the organization's strategies and objectives.
4. The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.

Question9: According to Porter, which of the following is associated with fragmented industries?

Question10: Organizational activities that complement each other and create a competitive advantage are called a:

Question11: Multinational organizations generally spend more time and effort to identify and evaluate:

Question12: An organization has received funding to continue a program that utilizes an in-house Due to new legislative requirements the application will require additional features to capture information not previously collected Which of the following is the most critical for completing this specific project?

Question13: Which of the following statements regarding program change management is not correct?

Question14: Which of the following re a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

Question15: Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?

Question16: Which of the following best describes the purpose of disaster recovery planning?

Question17: Which of the following application software features is the least effective control to protect passwords?

Question18: An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

Question19: According to Porter's model of competitive strategy, which of the following is a generic strategy?
1. Differentiation.
2. Competitive advantage.
3. Focused differentiation.
4. Cost focus.

Question20: Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:

Question21: Which of me following application controls is the most dependent on the password owner?

Question22: Which of the following is a typical example of structured data?

Question23: An organization's account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?

Question24: Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?

Question25: Which of the following is the most effective control to prevent unauthorized entrance of a former employee of the organization?

Question26: When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?
1. Management's tolerance for specific risks.
2. The cost versus benefit of implementing a control.
3. Whether a control can mitigate multiple risks.
4. The ability to test the effectiveness of the control.

Question27: Which of the following should an organization consider when developing strategic objectives for its business processes?
1. Contribution to the success of the organization.
2. Reliability of operational information.
3. Behaviors and actions expected of employees.
4. How inputs combine with outputs to generate activities.

Question28: Which of the following factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?

Question29: Which mindset promotes the most comprehensive risk management strategy?

Question30: Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management's duties with regard to this model?

Question31: When attempting to devise creative solutions to problems, team members initially should do which of the following?

Question32: A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?

Question33: Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

Question34: Listening effectiveness is best increased by:

Question35: Which of the following statements is in accordance with COBIT?
1. Pervasive controls are general while detailed controls are specific.
2. Application controls are a subset of pervasive controls.
3. Implementation of software is a type of pervasive control.
4. Disaster recovery planning is a type of detailed control.

Question36: A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?

Question37: The following transactions and events occurred during the year:

- $300,000 of raw materials were purchased, of which $20,000 were returned because of defects
- $600,000 of direct labor costs were incurred.
- S750.000 of manufacturing overhead costs were incurred.
What is the organization's cost of goods sold for the year?

Question38: According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?

Question39: Which of me following storage options would give the organization the best chance of recovering data?

Question40: Which of the following statements is correct regarding risk analysis?

Question41: The most important reason to use risk assessment in audit planning is to:

Question42: The mobility of personal smart devices significantly increases which of the following risks?

Question43: Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level -
Maintenance Cost
Month
Patient Days
Incurred
January
5,600
$7,900
February
7,100
$8,500
March
5,000
$7,400
April
6,500
$8,200
May
7,300
$9,100
June
8,000
$9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

Question44: Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?
1. Encryption.
2. Traffic padding.
3. Edit checks.
4. Structured data format.

Question45: As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized data?

Question46: Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

Question47: Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?

Question48: Which of the following budgets must be prepared first?

Question49: Which of the following is a role of the board of directors in the governance process?

Question50: Which of the following situations best applies to an organization that uses a project rather man a process to accomplish its business activities?

Question51: A capital investment project will have a higher net present value, everything else being equal, if it has:

Question52: An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement. Which of the following approaches is most appropriate to address this concern?

Question53: Which of the following statements is true regarding outsourced business processes?

Question54: Which of me Wowing summarizes information about the cash receipts and cash payments for a specific time period?

Question55: A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:

Question56: Unsecured loans are loans:

Question57: A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

Question58: When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

Question59: A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?

Question60: An internal auditor is assessing the risks related to an organization's mobile device pokey She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems Which of the following types of smart device risks should the internal auditor be most concerned about'

Question61: According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?
1. Consult on CSR program design and implementation.
2. Serve as an advisor on CSR governance and risk management.
3. Review third parties for contractual compliance with CSR terms.
4. Identify and mitigate risks to help meet the CSR program objectives.

Question62: The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?

Question63: Which of the following characteristics is most important specifically for a global manager to possess in order to be successful?

Question64: According to MA guidance on IT. which of the following would be considered a primary control for a spreadsheet to help ensure accurate financial reporting?

Question65: Which of the following IT operational areas is responsible for the integrity of data flow within an organization?

Question66: Which of the following statements about mentoring is true?
1. Mentoring can be used effectively for increasing employee retention
2. Mentoring can be used effectively in reducing employees frustration.
3. Mentoring can be used effectively for increasing organization communication.
4. Mentoring can be used effectively as a short term activity consisting of instruction and training

Question67: Which of the following controls would be the most effective in preventing the disclosure of an organization s confidential electronic information?

Question68: During an audit of the organization's annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years. Which of the following is the most likely explanation for this increase?

Question69: Which of the following is a primary objective of the theory of constraints?

Question70: Which of the following professional organizations sets standards for quality and environmental audits?

Question71: Which of the following cybersecurity-related activities is most likely to be performed by the second line of defense?

Question72: Which of the following would not impair the objectivity of internal auditor?

Question73: Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?

Question74: Which of the following should be included m a company's year-end inventory valuation?

Question75: If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?

Question76: An organization is projecting sales of 100,000 units, at a unit price of $12. Unit variable costs are $7. If fixed costs are $350,000, what is the projected total contribution margin?

Question77: A software that translates hypertext markup language (HTML) documents and allows a user to view a remote web page is called:

Question78: Which of the following best describes an objective for an audit of an environmental management system?

Question79: As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized data?

Question80: An internal auditor is investigating a potential fraudulent activity. What is the first test the auditor should perform on the transaction data under scrutiny?

Question81: Which of the following must be adjusted to index a progressive tax system to inflation?

Question82: Which of the following budgets serves as a basis for the budgeted income statement?

Question83: Which of the following statements is true regarding partnership liquidation?

Question84: Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?

Question85: According to IIA guidance, which of the following statements is true with regard to workstation computers that access company information stored on the network?

Question86: According to MA guidance on IT which of the following best describes a but recovery and restore processes have not been defined?

Question87: Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?

Question88: Which of the following strategies would most likely prevent an organization from adjusting to evolving industry market conditions?

Question89: Which of the following corporate social responsibility strategies is likely to be most effective in minimizing confrontations with influential activists and lobbyists?

Question90: Which of the following is false with regard to Internet connection firewalls?

Question91: Which of me following statements is true regarding the reporting of tangible and intangible assets?

Question92: The cost to enter a foreign market would be highest in which of the following methods of global expansion?

Question93: A multinational organization involved in online business has planned to set up a help desk service. Which of the following best describes the role performed by the help desk?

Question94: Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

Question95: 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.

Question96: All of the following are possible explanations for a significant unfavorable material efficiency variance except:

Question97: Which of the following types of data analytics would be used by a hospital to determine which patients are likely to require readmittance for additional treatment?

Question98: Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

Question99: Which of the following budgets serves as a basis for the budgeted income statement?

Question100: The process of scenario planning begins with which of the following steps?

Question101: Which of the following statements is true regarding a bring-your-own-device (BYOD) environment?

Question102: Which of the following concepts of managerial accounting is focused on allocating overheads to products?

Question103: Which of the following security controls focuses most on prevention of unauthorized access to the power plant?

Question104: Which of the following is not a barrier to effective communication?

Question105: Which of the following steps should an internal auditor take during an audit of an organization's business continuity plans?
1. Evaluate the business continuity plans for adequacy and currency.
2. Prepare a business impact analysis regarding the loss of critical business.
3. Identify key personnel who will be required to implement the plans.
4. Identify and prioritize the resources required to support critical business processes.

Question106: Which of the following is a key responsibility of a database administrator?

Question107: Which of the following is a systems software control?

Question108: Which of the following stages of group development is associated with accepting team responsibilities?

Question109: The first step in determining product price is:

Question110: An organization is considering the outsourcing of its business processes related to payroll and information technology functions. Which of the following is the most significant area of concern for management regarding this proposed agreement?

Question111: Which of the following application controls verifies the accuracy of transaction results in a system?

Question112: Which of the following statements is true regarding the "management-by-objectives" method?

Question113: Which of the following principles is shared by both hierarchical and open organizational structures?
1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions
2. A supervisor's span of control should not exceed seven subordinates
3. Responsibility should be accompanied by adequate authority
4. Employees at all levels should be empowered to make decisions.

Question114: An organization's network administrator received an email that appeared to come from the organization's external IT service provider requesting his credentials to perform an update of a server operating system If the IT service provider did not send the email, which of the following best describes the likely purpose of the email?

Question115: Which of the following is a security feature that involves the use of hardware and software to fitter or prevent specific information from moving between the outside network and the outside network?

Question116: According to the COSO enterprise risk management (ERM) framework, which of the following is not a typical responsibility of the chief risk officer?

Question117: An organization invests excess snort-term cash in trading securities. When of the following actions should an internal auditor take to test the valuation of those securities?

Question118: According to MA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

Question119: Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?

Question120: When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?

Question121: Which of the following risks would involve individuals attacking an oil company's IT system as a sign of solidarity against drilling in a focal area?

Question122: With regard lo project management when of the following statements about prefect crashing is true?

Question123: Which of the following best demonstrates an organization's ability to recover from a disaster?

Question124: Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?

Question125: In mergers and acquisitions, which of the following is an example of a horizontal combination?

Question126: A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

Question127: Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?

Question128: An organization has a complex systems infrastructure consisting of multiple internally developed, off the shelf, and purchased but significantly customized applications. Some of these applications share databases or process data that is used by another stand-alone application, and interfaces have been written to move data between these applications as needed through batch processing Which of the following situations presents the greatest risk exposure given this environment?

Question129: Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

Question130: According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time?

Question131: Which of the following statements pertaining to a market skimming pricing strategy is not true?

Question132: Which of the following is true regarding the COSO enterprise risk management framework?

Question133: According to HerzBerg's Two-Factor Theory of Motivation, which of the following factors ate mentioned most often By satisfied employees?

Question134: An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?

Question135: When using data analytics during a review of the procurement process what is the first step in the analysis process?

Question136: When granting third parties temporary access to an entity's computer systems, which of the following is the most effective control?

Question137: Which of the following should be established by management during implementation of big data systems to enable ongoing production monitoring?

Question138: According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?
1. Every employee generally has a responsibility for ensuring the success of CSR objectives.
2. The board has overall responsibility for the effectiveness of internal control processes associated with CSR.
3. Public reporting on the CSR governance process is expected.
4. Organizations generally have flexibility regarding what is included in a CSR program.

Question139: An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

Question140: An internal auditor is evaluating an organization's business continuity management program According to HA guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?

Question141: If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?