EMT Practice Test

1. Question Content...

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Question1: A retail organization mistakenly did not include S10.000 of inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?

Question2: An internal auditor is evaluating an organization's business continuity management program According to the guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?

Question3: An organization with an annual demand of 25.000 units correctly computes its economic order quantity to be 1,000 units Its safety stock is 300 units and the lead time is two days If there are 250 production days in a year what is the reorder point1?

Question4: Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

Question5: An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the dat a. Which of me following statements is true regarding this scenario?

Question6: Which of the following strategies would most likely prevent an organization from adjusting to evolving industry market conditions?

Question7: Which of the following statements is true with regard to information protection?

Question8: According to IIA guidance, which of the following best describes the activities that occur during the conversion phase of an IT project?

Question9: With regard to disaster recovery planning, which of the following would most likely involve stakeholders from several departments?

Question10: How do data analysis technologies affect internal audit testing?

Question11: According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?

Question12: When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

Question13: A software that translates hypertext markup language (HTML) documents and allows a user to view a remote web page is called:

Question14: in which of the following technical infrastructure audits should attention be turned to physical security and environmental controls?

Question15: 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?

Question16: Which of the following financial instruments should be recorded at fair market value on the financial statements?

Question17: If a just-in-time purchasing system is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?

Question18: Management has established a performance measurement focused on the accuracy of disbursements The disbursement statistics, provided daily to all accounts payable and audit staff, include details of payments stratified by amount and frequency Which of the following is likely to be the greatest concern regarding this performance measurement?

Question19: The economic order quantity can be calculated using the following formula:
Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

Question20: 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?

Question21: Which of the following data analytics tools would be applied by an internal audit activity positioned at the lowest level of maturity?

Question22: Which of the following strategies is most appropriate for an industry that is in decline?

Question23: Which of the following would be a risk in the development of end-user computing (EUC) applications, compared to traditional information systems?

Question24: Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?

Question25: According to IIA guidance on IT. which of the following plans would pair the identification of critical business processes with recovery time objectives?

Question26: According to MA guidance on IT. which of the following controls the routing of data packets to link computers?

Question27: Which of the following statements about slack time and milestones are true?
1. Slack time represents the amount of time a task may be delayed without delaying the entire project.
2. A milestone is a moment in time that marks the completion of the project's major deliverables.
3. Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.
4. A milestone requires resource allocation and needs time to be completed.

Question28: Which of the following controls would be the most effective in preventing the disclosure of an organization s confidential electronic information?

Question29: An internal auditor discovered that several unauthorized modifications were made to the production version of an organization's accounting application. Which of the following best describes this deficiency?

Question30: Within an enterprise, IT governance relates to the:
1. Alignment between the enterprise's IT long term plan and the organization's objectives.
2. Organizational structures of the company that are designed to ensure that IT supports the organization's strategies and objectives.
3. Operational plans established to support the IT strategies and objectives.
4. Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.

Question31: 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?

Question32: Which of the following are typical responsibilities for operational management within a risk management program?
1. Implementing corrective actions to address process deficiencies.
2. Identifying shifts in the organization's risk management environment.
3. Providing guidance and training on risk management processes.
4. Assessing the impact of mitigation strategies and activities.

Question33: Under a value-added taxing system:

Question34: Which of the following concepts of managerial accounting is focused on allocating overheads to products?

Question35: Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of $3 per unit The market price of the product is $15 plus 20% selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for $18 Which of the following methods of transfer pricing is being used?

Question36: Which of the following IT operational areas is responsible for the integrity of data flow within an organization?

Question37: Which of the following application-based controls is an example of a programmed edit check?

Question38: Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?

Question39: 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?

Question40: Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

Question41: When using data analytics during a review of the procurement process what is the first step in the analysis process?

Question42: In mergers and acquisitions, which of the following is an example of a horizontal combination?

Question43: According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:

Question44: According to IIA guidance, which of the following statements is true regarding analytical procedures?

Question45: Which of the following application software features is the least effective control to protect passwords?

Question46: Which stage of group development is characterized by a decrease in conflict and hostility among group members and an increase in cohesiveness?

Question47: A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs. This is an example of which of the following?

Question48: Which of the following statements is true regarding the risks associated with the increased use of smart devices at work?

Question49: 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.

Question50: An organization accumulated the following data for the prior fiscal year:
Value of Percentage of
Quarter
Output Produced
Cost X
1
$4,750,000
2.9
2
$4,700,000
3.0
3
$4,350,000
3.2
4
$4,000,000
3.5
Based on this data, which of the following describes the value of Cost X in relation to the value of Output Produced?

Question51: An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

Question52: According to Maslow's hierarchy of needs theory, which of the Mowing best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

Question53: For employees, the primary value of implementing job enrichment is which of the following?

Question54: All of the following are possible explanations for a significant unfavorable material efficiency variance except:

Question55: Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

Question56: The greatest advantage of functional departmentalization is that it:

Question57: An organization accomplishes its goal to obtain a 40 percent share of the domestic market, but is unable to get the desired return on investment and output per hour of labor. Based on this information the organization is most likely focused on which of the following?

Question58: Which of the following authentication controls combines what a user knows with the unique characteristics of the user respectively?

Question59: Which of the following best describes an objective for an audit of an environmental management system?

Question60: The first step in determining product price is:

Question61: Which of the following stages of group development is associated with accepting team responsibilities?

Question62: Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?

Question63: Which of the following is an example of an application control?

Question64: Organizations use matrix management to accomplish which of the following?

Question65: During which phase of the contacting process ate contracts drafted for a proposed business activity?

Question66: Based on lest results an IT auditor concluded that the organization would suffer unacceptable toss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

Question67: Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?

Question68: 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?

Question69: Which of the following is the primary benefit of including end users in the system development process?

Question70: An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent. If the organization has total debt of $1 000 000 what is the organization's sales level?

Question71: An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?

Question72: 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?

Question73: Unsecured loans are loans:

Question74: The mobility of personal smart devices significantly increases which of the following risks?

Question75: 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?

Question76: 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?

Question77: Which of the following best demonstrates an organization's ability to recover from a disaster?

Question78: An organization is experiencing a high turnover. Which of the following can human resources deploy to effectively detect the root cause of turnover?

Question79: An internal auditor observed that the organization's disaster recovery solution will make use of a code site in a town several miles away Which of the following is likely to be a characteristic of this disaster recovery solution?

Question80: Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?

Question81: Which of the following is not included in the process of user authentication?

Question82: An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?

Question83: 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?

Question84: Organization X owns a 38 percent equity stake in Organization Y.
Which of the following statements is true regarding the financial treatment for this relationship?

Question85: 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?

Question86: While reviewing the contracts for a large city, the internal auditor learns that the organization contracted to perform trash collection is paid based on the number of bins emptied each week as a result, the city has minimal control over payments Which of the following actions should the auditor recommend to give the city greater control over payments?

Question87: Which of the following statements is true regarding cost-volume-profit analysis?

Question88: Which of the following is an example of a physical control?

Question89: The internal audit activity completed an initial risk analysis of the organization's data storage center and found several areas of concern. Which of the following is the most appropriate next step?

Question90: The leadership of an organization encourages employees to form voluntary problem-solving groups whereby several employees from the same work area meet regularity during work hours to discuss improvements and creative ways to reduce costs. Which of the following best describes this approach?

Question91: Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?

Question92: An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

Question93: A brand manager in a consumer food products organization suspected that several days of the point-of- sale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:

Question94: According to IIA guidance, which of the following is a primary component of a network security strategy?

Question95: Which of the following is an example of a smart device security control intended to prevent unauthorized users from gaining access to a device's data or applications?

Question96: Which of the following statements is true regarding an organization's inventory valuation1?

Question97: What kind of strategy would be most effective for an organization to adopt in order to implement a unique advertising campaign for selling identical product lines across all of its markets?

Question98: 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.

Question99: According to Porter, which of the following is associated with fragmented industries?

Question100: Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:

Question101: Which of the following factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?

Question102: The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas, and he decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?
1) Favorable labor efficiency variance.
2) Adverse labor rate variance.
3) Adverse labor efficiency variance.
4) Favorable labor rate variance.

Question103: Which of the following professional organizations sets standards for quality and environmental audits?

Question104: The critical path for any project is the path that exhibits which of the following characteristics?

Question105: Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?

Question106: What would be the effect if an organization paid one of its liabilities twice during the year in error?

Question107: Which of the following application controls checks the integrity of data entered into a business application?

Question108: Which of the following phases of a business cycle are marked by an underuse of resources?
1. The trough.
2. The peak.
3. The recovery.
4. The recession.

Question109: According to IIA guidance, which of the following statements is true with regard to workstation computers that access company information stored on the network?

Question110: A capital investment project will have a higher net present value, everything else being equal, if it has:

Question111: 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.

Question112: In an organization's established accounts payable department employees perform highly structured activities follow clearly defined procedures and have strict deadlines for performing their tasks The head of the department recently retired, and a new department head was hired To achieve the greatest benefit for this department and avoid redundancy the new leader should adopt which of the following leadership styles?

Question113: Which of the following statements about matrix organizations is false?

Question114: Which of the following is an example of a physical security control that should be in place at an organization's data center?

Question115: 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?

Question116: An internal audit activity is piloting a data analytics model, which aims to identify anomalies in payments to vendors and potential fraud indicators Which of the following would be the most appropriate criteria for assessing the success of the piloted model?

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: Operational management in the IT department has introduced performance evaluation policies that are linked to employees achieving continuing education hours. This activity is designed to prevent which of the following conditions?

Question119: A remote location contains a data center with hardware available to support critical production systems as required in the recovery plan IT personnel periodically test and update systems at the data center. This is an example of which of the following recovery solutions?

Question120: Which of the following statements regarding program change management is not correct?

Question121: According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?
1. Organizational governance.
2. Organizational operations.
3. Organizational information systems.
4. Organizational structure.

Question122: 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
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?

Question123: Which mindset promotes the most comprehensive risk management strategy?

Question124: Which of the following is a disadvantage in a centralized organizational structure?

Question125: Which type of bond sells at a discount from face value, then increases in value annually until it reaches maturity and provides the owner with the total payoff?

Question126: An internal auditor has been approved lo gather data directly horn the organization's relational database management system tor data analyses To collect the data which of the Wowing is most important for the auditor to know?

Question127: An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?

Question128: Which of me following is true of matrix organizations?

Question129: An organization facing rapid growth decides to employ a third party service provider to manage its customer relationship management function. Which of the following is true regarding the supporting application software used by that provider compared to an in-house developed system?
1. Updating documentation is always a priority.
2. System availability is usually more reliable.
3. Data security risks are lower.
4. Overall system costs are lower.

Question130: An organization produces two products, X and Y.
The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows:
Product X
Product Y
Selling price per unit
$10
$13
Materials per unit (at $1/kg)
2 kg
6 kg
Monthly demand
100 units
120 units
In order to maximize profit, how much of product Y should the organization produce each month?

Question131: Which of the following local area network physical layouts is subject to the greatest risk of failure if one device fails?

Question132: Which of the following does not provide operational assurance that a computer system is operating properly?

Question133: Which of the following is a characteristic of just-in-time inventory management systems?

Question134: Which of the following should be included m a company's year-end inventory valuation?

Question135: Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?

Question136: Which of the following statements is true regarding the relationship between an individual's average tax rate and marginal tax rate?

Question137: Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

Question138: 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?

Question139: The economic order quantity for inventory is higher for an organization that has:

Question140: Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

Question141: Which of the following is true regarding an organization's relationship with external stakeholders?

Question142: Which of me following application controls is the most dependent on the password owner?

Question143: Which of the following statements is true regarding outsourced business processes?

Question144: Which of the following is a characteristic of an emerging industry?