EMT Practice Test

1. Question Content...

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Question1: An organization's account for office supplies on hand had a balance of $9,000 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 he recorded in the adjusting entry an the end of year two?

Question2: Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?

Question3: Which of the following is the most appropriate way lo record each partner's initial Investment in a partnership?

Question4: During which phase of the contracting process ere contracts drafted for a proposed business activity?

Question5: An organization's board of directors is particularly focused on positioning, the organization as a leader in the industry and beating the competition. Which of the following strategies offers the greatest alignment with the board's focus?

Question6: Which of the following cost of capital methods identifies the time period required to recover She cost of the capital investment from the annual inflow produced?

Question7: Which of the following responsibilities would ordinary fall under the help desk function of an organization?

Question8: Which of the following network types should an organization choose if it wants to allow access only to its own personnel?

Question9: An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

Question10: An organization has a declining inventory turnover but an Increasing gross margin rate, Which of the following statements can best explain this situation?

Question11: While performing an audit of a car tire manufacturing plant, an internal auditor noticed a significant decrease in the number of tires produced from the previous operating period. To determine whether worker inefficiency caused the decrease, what additional information should the auditor request?

Question12: Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

Question13: Which of the following statements is true regarding the management-by-objectives method?

Question14: Which of the following is an effective preventive control for data center security?

Question15: Which of the following IT-related activities is most commonly performed by the second line of defense?

Question16: Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

Question17: A large retail customer made an offer to buy 10.000 units at a special price of $7 per unit. The manufacturer usually sells each unit for $10, Variable Manufacturing costs are 55 per unit and fixed manufacturing costs are $3 per unit. For the manufacturer to accept the offer, which of the following assumptions needs to be true?

Question18: Which of the following risks would Involve individuals attacking an oil company's IT system as a sign of solidarity against drilling in a local area?

Question19: Which of the following performance measures includes both profits and investment base?

Question20: Which of the following security controls would provide the most efficient and effective authentication for customers to access these online shopping account?

Question21: An organization that soils products to a foreign subsidiary wants to charge a price that wilt decrease import tariffs. Which of the following is the best course of action for the organization?

Question22: Which of the following capital budgeting techniques considers the expected total net cash flows from investment?

Question23: Which of the following capital budgeting techniques considers the tune value of money?

Question24: Which of the following best describes depreciation?

Question25: When evaluating the help desk services provided by a third-party service provider which of the following is likely to be the internal auditor's greatest concern?

Question26: 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?

Question27: Which of the following data security policies is most likely to be the result of a data privacy law?

Question28: When using data analytics during a review of the procurement process, what is the first step in the analysis process?

Question29: Which of the following is classified as a product cost using the variable costing method?
1. Direct labor costs.
2. Insurance on a factory.
3. Manufacturing supplies.
4. Packaging and shipping costa.

Question30: Which of the following lists best describes the classification of manufacturing costs?

Question31: Which of following best demonstrates the application of the cost principle?

Question32: Which of the following is an example of a physical control?

Question33: An organization decided to outsource its human resources function. As part of its process migration, the organization is implementing controls over sensitive employee data.
What would be the most appropriate directive control in this area?

Question34: A company produces water buckets with the following costs per bucket:
Direct labor = 82
Direct material = $5
Fixed manufacturing = 83.50
Variable manufacturing = 82.50
The water buckets are usually sold for $15. However, the company received a special order for 50.000 water buckets at 311 each.
Assuming there is adequate manufacturing capacity and ail other variables are constant , what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?

Question35: Following an evaluation of an organization's IT controls, an internal auditor suggested improving the process where results are compared against the input. Which of the following IT controls would the Internal auditor recommend?

Question36: Which of the following IT disaster recovery plans includes a remote site dessgnated for recovery with available space for basic services, such as internet and telecommunications, but does not have servers or infrastructure equipment?

Question37: An organization is considering outsourcing its IT services, and the internal auditor as assessing the related risks. The auditor grouped the related risks into three categories;
- Risks specific to the organization itself.
- Risks specific to the service provider.
- Risks shared by both the organization and the service provider
Which of the following risks should the auditor classify as specific to the service provider?

Question38: A retail organization mistakenly did have include $10,000 of Inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?

Question39: Management is designing its disaster recovery plan. In the event that there is significant damage to the organization's IT systems this plan should enable the organization to resume operations at a recovery site after some configuration and data restoration. Which of the following is the ideal solution for management in this scenario?

Question40: Which of the following actions should an internal auditor take to clean the data obtained for analytics purposes?

Question41: An organization has instituted a bring-your-own-device (BYOD) work environment. Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?

Question42: Which of the following is a benefit from the concept of Internet of Things?

Question43: Which of the following intangible assets is considered to have an indefinite life?

Question44: During a review of the accounts payable process, an internal auditor gathered all of the vendor payment transactions for the past 24 months. The auditor then used an Analytics tool to identify the top five vendors that received the highest sum of payments. Which of the following analytics techniques did the auditor apply?

Question45: When reviewing application controls using the four-level model, which of the following processes are associated with level 4 of the business process method?

Question46: An organization decided to reorganize into a flatter structure. Which of the following changes would be expected with this new structure?

Question47: Which of the following best describes the purpose of fixed manufacturing costs?

Question48: Which of the following best explains why an organization would enter into a capital lease contract?

Question49: When determining the level of physical controls required for a workstation, which of the following factors should be considered?

Question50: After purchasing shoes from an online retailer, a customer continued to receive additional unsolicited offers from the retailer and other retailers who offer similar products.
Which of the following is the most likely control weakness demonstrated by the seller?

Question51: According to Herzberg's Two-Factor Theory of Motivation, which of the following is a factor mentioned most often by satisfied employees?

Question52: A rapidly expanding retail organisation continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

Question53: Which of the following disaster recovery plans includes recovery resources available at the site, but they may need to be configured to support the production system?

Question54: An organization created a formalized plan for a large project. Which of the following should be the first step in the project management plan?

Question55: An organization upgraded to a new accounting software. Which of the following activities should be performed by the IT software vendor immediately following the upgrade?

Question56: Which of the following best describes a transformational leader, as opposed to a transactional leader?

Question57: Which of the following best describes a man-in-the-middle cyber-attack?

Question58: An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two. Which of the following could be the reason for the decline in the net profit margin for year two?

Question59: The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity's (lAArs) processes. He would like to reduce the time to complete audits and improve client ratings of the IAA.
Which of the following staffing approaches is the CAE most likely lo select?

Question60: The management of working capital is most crucial for which of the following aspects of business?

Question61: An organization uses the management-by-objectives method whereby employee performance is based on defined goals. Which of the following statements is true regarding this approach?

Question62: Which of the following is the most appropriate beginning step of a work program for an assurance engagement involving smart devices?

Question63: According to lIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?

Question64: Which of the following scenarios best illustrates a spear phishing attack?

Question65: At one organization, the specific terms of a contract require both the promisor end promise to sign the contract in the presence of an independent witness.
What is the primary role to the witness to these signatures?

Question66: With increased cybersecurity threats, which of the following should management consider to ensure that there is strong security governance in place?

Question67: At one organization, the specific terms of a contract require both the promisor and promisee to sign the contract in the presence of an independent witness. What is the primary role to the witness to these signatures?

Question68: For which of the following scenarios would the most recent backup of the human resources database be the best source of information to use?

Question69: Which of the following security controls would be me most effective in preventing security breaches?

Question70: Which of the following is a systems software control?

Question71: Which of the following is a characteristic of big data?

Question72: Which of the following statements is true regarding cost-volume-profit analysis?

Question73: An internal auditor is reviewing key phases of a software development project. Which of the following would; the auditor most likely use to measure the project team's performance related to how project tasks are completed?

Question74: What is the primary risk associated with an organization adopting a decentralized structure?

Question75: Which of the following is improved by the use of smart devices?

Question76: Which of the following statements is true regarding user-developed applications (UDAs)?

Question77: According to Herzberg's Two-Factor Theory of Motivation, which of the following is a factor mentioned most often by satisfied employees?

Question78: According to IIA guidance, which of the following statements is true with regard to workstation computers that access company Information stored on the network?

Question79: Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?

Question80: According to 11A guidance on IT, which of the following spreadsheets is most likely to be considered a high-risk user-developed application?

Question81: According to 11A guidance on it; which of the following statements is true regarding websites used in e-commerce transactions?

Question82: At an organization that uses a periodic inventory system, the accountant accidentally understated the organization s beginning inventory. How would the accountant's accident impact the income statement?

Question83: Management is pondering the following question:
"How does our organization compete?"
This question pertains to which of the following levels of strategy?

Question84: Which of the following actions would senior management need to consider as part of new IT guidelines regarding the organization's cybersecurity policies?

Question85: Which of the following is most important for an internal auditor to check with regard to the database version?

Question86: Which of the following best explains the matching principle?

Question87: In reviewing an organization's IT infrastructure risks, which of the following controls is to be tested as pan of reviewing workstations?

Question88: An organization discovered fraudulent activity involving the employee time-tracking system. One employee regularly docked in and clocked out her co-worker friends on their days off, inflating their reported work hours and increasing their wages. Which of the following physical authentication devices would be most effective at disabling this fraudulent scheme?

Question89: When would a contract be dosed out?

Question90: A small chain of grocery stores made a reporting error and understated its ending inventory. What effect would this have on the income statement for the following year?

Question91: Which of the following organization structures would most likely be able to cope with rapid changes and uncertainties?

Question92: An organization that relies heavily on IT wants to contain the impact of potential business disruption to a period of approximately four to seven days. Which of the following business recovery strategies would most efficiently meet this organization's needs?

Question93: Which of the following is an example of internal auditors applying data mining techniques for exploratory purposes?

Question94: Which of the following statements is true regarding user developed applications (UDAs) and traditional IT applications?