EMT Practice Test

1. Question Content...

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Question1: Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?

Question2: Which of the following can be viewed as a potential benefit of an enterprisewide resource planning system?

Question3: 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?

Question4: 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?

Question5: According to 11A guidance on it; which of the following statements is true regarding websites used in e-commerce transactions?

Question6: 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?

Question7: An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?

Question8: 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?

Question9: Which of the following bring-your-own-device (BYOD) practices is likely to increase the risk of Infringement on local regulations, such as copyright or privacy laws?

Question10: An organization suffered significant damage to its local: file and application servers as a result of a hurricane.
Fortunately, the organization was able to recover all information backed up by its overseas third-party contractor. Which of the following approaches has been used by the organization?

Question11: 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?

Question12: An employee was promoted within the organization and relocated to a new office in a different building. A few months later, security personnel discovered that the employee's smart card was being used to access the building where she previously worked. Which of the following security controls could prevent such an incident from occurring?

Question13: Which of the following types of budgets will best provide the basis for evaluating the organization's performance?

Question14: An organization prepares a statement of privacy to protect customers' personal information. Which of the following might violate the privacy principles?

Question15: According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?

Question16: Which of the following represents a basis for consolidation under the International Financial Reporting Standards?

Question17: A new clerk in the managerial accounting department applied the high-low method and computed the difference between the high and low levels of maintenance costs. Which type of maintenance costs did the clerk determine?

Question18: Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring- your-own-device (BYOD) policy?

Question19: Which of the following statements is true regarding user developed applications (UDAs) and traditional IT applications?

Question20: Which of the following is true of bond financing, compared to common stock, when alJ other variables are equal?

Question21: During disaster recovery planning, the organization established a recovery point objective. Which of the following best describes this concept?

Question22: An internal auditor found the following information while reviewing the monthly financial siatements for a wholesaler of safety

The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?

Question23: A one-time password would most likely be generated in which of the following situations?

Question24: 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?

Question25: Which of the following is a cybersecurity monitoring activity intended to deter disruptive codes from being installed on an organizations systems?

Question26: An organization with a stable rating, as assessed by International rating agencies, has issued a bond not backed by assets or collateral. Payments of the interests and the principal to bondholders are guaranteed by the organization. Which type of bond did the organization issue?

Question27: For employees, the primary value of implementing job enrichment is which of the following?

Question28: Which of the following is most influenced by a retained earnings policy?

Question29: An organization has 1,000 units of a defective item in stock. Per unit, market price is $10; production cost is
$4; and the defect selling price is $5. What is the carrying amount (inventory value) of defects at year-end?

Question30: Which of the following performance measures includes both profits and investment base?

Question31: Which of the following is improved by the use of smart devices?

Question32: Which of the following is considered a physical security control?

Question33: Which of the following should internal auditors be attentive of when reviewing personal data consent and opt- in/opt-out management process?

Question34: Which of the following is an example of an application control?

Question35: 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 $5 per unit andfixed manufacturing costs are
$3 per unit. For the manufacturer to accept the offer, which of the following assumptions needs to be true?

Question36: 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?

Question37: Which of the following network types should an organization choose if it wants to allow access only to its own personnel?

Question38: According to IIA guidance on IT, which of the following would be considered a primary control for a spreadsheet to help ensure accurate financial reporting?

Question39: Which of the following statements is true regarding cost-volume-profit analysis?

Question40: 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?

Question41: An IT auditor is evaluating IT controls of a newly purchased information system. The auditor discovers that logging is not configured al database and application levels. Operational management explains that they do not have enough personnel to manage the logs and they see no benefit in keeping logs. Which of the fallowing responses best explains risks associated with insufficient or absent logging practices?

Question42: An internal auditor identified a database administrator with an incompatible dual role. Which of the following duties should not be performed by the identified administrator?

Question43: According to Maslow's hierarchy of needs theory, which of the following would likely have the most impact on retaining staff, if their lower-level needs are already met?

Question44: Which of the following security controls would be me most effective in preventing security breaches?

Question45: Which of the following best describes the primary objective of cybersecurity?

Question46: 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?

Question47: According to Maslow's hierarchy of needs theory, which of the following best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

Question48: An internal auditor was asked to review an equal equity partnership. In one sampled transaction, Partner A transferred equipment into the partnership with a self-declared value of $10,000, and Partner B contributed equipment with a self-declared value of $15,000. The capital accounts of each partner were subsequently credited with $12,500. Which of the following statements is true regarding this transaction?

Question49: Which of the following is a benefit from the concept of Internet of Things?

Question50: Which of the following business practices promotes a culture of high performance?

Question51: 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?

Question52: Which of the following is a characteristic of big data?

Question53: Which of the following statements is true regarding activity-based costing (ABC)?

Question54: Which of the following concepts of managerial accounting is focused on achieving a point of low or no inventory?

Question55: Which of the following IT layers would require the organization to maintain communication with a vendor in a tightly controlled and monitored manner?

Question56: Which of the following attributes of data are cybersecurity controls primarily designed to protect?

Question57: Which of the following statements is true regarding a project life cycle?

Question58: Which of the following statements is true regarding cost-volume-profit analysis?

Question59: An internal auditor was asked to review an equal equity partnership, in one sampled transaction. Partner A transferred equipment into the partnership with a Self-declared value of 510 ,000, and Partner B contributed equipment with a self-declared value of 515,000. The capital accounts reach partner were subsequently credited with $12,500. Which of the following statements Is true regarding this transection?

Question60: According to Herzberg's Two-Factor Theory of Motivation, which of the following is a factor mentioned most often by satisfied employees?

Question61: The board of directors wants to implement an incentive program for senior management that is specifically tied to the long-term health of the organization. Which of the following methods of compensation would be best to achieve this goal?

Question62: In light of increasing emission taxes in the European Union, a car manufacturer introduced a new middle- class hybrid vehicle specifically for the European market only. Which of the following competitive strategies has the manufacturer used?

Question63: Which of the following types of accounts must be closed at the end of the period?

Question64: Which of the following statements Is true regarding the use of centralized authority to govern an organization?

Question65: When auditing databases, which of the following risks would an Internal auditor keep In mind In relation to database administrators?

Question66: With regard to project management, which of the following statements about project crashing Is true?

Question67: During which phase of the contracting process are contracts drafted for a proposed business activity?

Question68: Which of the following statements is true regarding the term "flexible budgets" as it is used in accounting?

Question69: 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?

Question70: 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?

Question71: Which of the following IT professionals is responsible for providing maintenance to switches and routers to keep IT systems running as intended?

Question72: Which of the following can be classified as debt investments?

Question73: Which of the following biometric access controls uses the most unique human recognition characteristic?

Question74: According to Herzberg's Two-Factor Theory of Motivation, which of the following factors are mentioned most often by satisfied employees?

Question75: Employees at an events organization use a particular technique to solve problems and improve processes. The technique consists of five steps: define, measure, analyze, improve, and control. Which of the following best describes this approach?

Question76: When would a contract be dosed out?

Question77: An organization requires an average of 58 days to convert raw materials into finished products to sell. An additional 42 days is required to collect receivables. If the organization takes an average of 10 days to pay for raw materials, how long is its total cash conversion cycle?

Question78: What security feature would Identity a legitimate employee using her own smart device to gam access to an application run by the organization?

Question79: In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners. Which of the following network types is illustrated by this scenario?

Question80: Which of the following is an established systems development methodology?

Question81: Which of the following is true regarding the use of remote wipe for smart devices?

Question82: 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?

Question83: Which of the following should be included in a data privacy poky?
1. Stipulations for deleting certain data after a specified period of time.
2. Guidance on acceptable methods for collecting personal data.
3. A requirement to retain personal data indefinitely to ensure a complete audit trail,
4. A description of what constitutes appropriate use of personal data.

Question84: According to IIA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

Question85: Which of the following statements describes the typical benefit of using a flat organizational structure for the internal audit activity, compared to a hierarchical structure?

Question86: When examining; an organization's strategic plan, an internal auditor should expect to find which of the following components?

Question87: Which of the following actions should an internal auditor take to clean the data obtained for analytics purposes?

Question88: How do data analysis technologies affect internal audit testing?

Question89: Which of the following storage options would give the organization the best chance of recovering data?

Question90: Which of the following physical access controls often functions as both a preventive and detective control?

Question91: An internal auditor is assessing the risks related to an organization's mobile device policy. 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?

Question92: Which of the following best describes a potential benefit of using data analyses?

Question93: 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?

Question94: Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?

Question95: According to 11A guidance on IT, which of the following are indicators of poor change management?
1. Inadequate control design.
2. Unplanned downtime.
3. Excessive troubleshooting .
4. Unavailability of critical services.

Question96: Which of the following best describes depreciation?

Question97: A clothing company sells shirts for $8 per shirt. In order to break even, the company must sell 25.000 shirts.
Actual sales total S300.000. What is margin of safety sales for the company?

Question98: 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?

Question99: Which of the following is an example of two-factor authentication?

Question100: Which of the following sites would an Internet service provider most likely use to restore operations after its servers were damaged by a natural disaster?

Question101: According to IIA guidance, which of the following statements is true with regard to workstation computers that access company information stored on the network?

Question102: Which of the following data security policies is most likely to be the result of a data privacy law?

Question103: Which of the following activities best illustrates a user's authentication control?

Question104: Which of the following best describes a cyberattacK in which an organization faces a denial-of-service threat created through malicious data encryption?

Question105: A bond that matures after one year has a face value of S250,000 and a coupon of $30,000. if the market price of the bond is 5265,000, which of the following would be the market interest rate?

Question106: Which of the following common quantitative techniques used in capital budgeting is best associated with the use of a table that describes the present value of an annuity?

Question107: Which of the following controls is the most effective for ensuring confidentially of transmitted information?

Question108: Which of the following practices circumvents administrative restrictions on smart devices, thereby increasing data security risks?

Question109: Which of the following backup methodologies would be most efficient in backing up a database in the production environment?

Question110: Which of the following would most likely serve as a foundation for individual operational goats?

Question111: Which of the following intangible assets is considered to have an indefinite life?

Question112: Which of the following is true regarding the use of remote wipe for smart devices?

Question113: According to 11A guidance on IT, which of the following spreadsheets is most likely to be considered a high-risk user-developed application?

Question114: Which of the following statements is most accurate concerning the management and audit of a web server?

Question115: Which of the following actions would senior management need to consider as part of new IT guidelines regarding the organization's cybersecurity policies?

Question116: Which of the following is a systems software control?

Question117: An organization has 10,000 units of a defect item in stock, per unit, market price is $10$; production cost is
$4; and defect selling price is $5. What is the carrying amount (inventory value) of defects at your end?

Question118: An internal auditor reviews a data population and calculates the mean, median, and range. What is the most likely purpose of performing this analytic technique?

Question119: With regard to project management, which of the following statements about project crashing is true?

Question120: Which of the following is the best example of IT governance controls?

Question121: According to IIA guidance, which of the following links computers and enables them to -communicate with each other?

Question122: Which of the following is an example of a contingent liability that a company should record?

Question123: Which of the following lists is comprised of computer hardware only?

Question124: Which of the following parties is most likely to be responsible for maintaining the infrastructure required to prevent the failure of a real-time backup of a database?

Question125: Which of the following IT disaster recovery plans includes a remote site designated for recovery with available space for basic services, such as internet and telecommunications, but does not have servers or infrastructure equipment?

Question126: Which of the following are the most common characteristics of big data?

Question127: Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

Question128: An internal auditor for a pharmaceutical company as planning a cybersecurity audit and conducting a risk assessment. Which of the following would be considered the most significant cyber threat to the organization?

Question129: Focus An organization has decided to have all employees work from home. Which of the following network types would securely enable this approach?

Question130: Which of the following statements. Is most accurate concerning the management and audit of a web server?

Question131: Which of the following organization structures would most likely be able to cope with rapid changes and uncertainties?

Question132: Which of the following is a characteristic of big data?

Question133: Which of the following is the most appropriate beginning step of a work program for an assurance engagement involving smart devices?

Question134: Management has established a performance measurement focused on the accuracy of disbursements. The disbursement statistics, provided daily to ail 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?

Question135: Which of the following would be classified as IT general controls?

Question136: Capital budgeting involves choosing among various capital projects to find the one(s) that will maximize a company's return on its financial investment. Which of the following parties approves the capital budget?

Question137: 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?

Question138: An organization produces 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 in order to maximize profit, how much of product Y should the organization produce each month?
$10 $13
2 kg
70 units
6 kg
120 units

Question139: Management has decided to change the organizational structure from one that was previously decentralized to one that is now highly centralized. As such: which of the following would be a characteristic of the now highly centralized organization?

Question140: What is the primary purpose of data and systems backup?

Question141: Which of the following lists best describes the classification of manufacturing costs?

Question142: During a payroll audit, the internal auditor is assessing the security of the local area network of the payroll department computers. Which of the following IT controls should the auditor test?

Question143: Which of the following job design techniques would most likely be used to increase employee motivation through job responsibility and recognition?

Question144: When using data analytics during a review of the procurement process, what is the first step in the analysis process?

Question145: Which of the following attributes of data is the most significantly impacted by the internet of things?

Question146: For which of the following scenarios would the most recent backup of the human resources database be the best source of information to use?

Question147: 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?

Question148: How do data analysis technologies affect internal audit testing?

Question149: 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?

Question150: Which of the following statements is true concerning the basic accounting treatment of a partnership?

Question151: A third party who provides payroll services to the organization was asked to create audit or "read-only 1 functionalities in their systems. Which of the following statements is true regarding this request?

Question152: According to IIA guidance, which of the following is an IT project success factor?

Question153: 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?

Question154: Which of the following best describes the type of control provided by a firewall?

Question155: Which of the following statements is true regarding data backup?

Question156: A company records income from an investment in common stock when it does which of the following?

Question157: Which of the following forms of compensation best indicates that an organization's cost-saving objectives have been targeted?

Question158: 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?

Question159: Which of the following situations best applies to an organization that uses a project, rather than a process, to accomplish its business activities?

Question160: A motivational technique generally used to overcome monotony and job-related boredom is:

Question161: Which of the following is a disadvantage in a centralized organizational structure?

Question162: What is the primary risk associated with an organization adopting a decentralized structure?

Question163: On the last day of the year, a total cost of S 150.000 was incurred in indirect labor related to one of the key products an organization makes. How should the expense be reported on that year's financial statements?

Question164: 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.

Question165: Which of the following is used during all three stages of project management?

Question166: 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?

Question167: Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

Question168: When reviewing application controls using the four-level model, which of the following processes are associated with level 4 of the business process method?

Question169: Which of the following statements is true regarding user-developed applications (UDAs)?

Question170: During which phase of the contracting process ere contracts drafted for a proposed business activity?

Question171: An investor has acquired an organization that has a dominant position in a mature, slow-growth industry and consistently creates positive financial income. Which of the following terms would the investor most likely label this investment in her portfolio?

Question172: Which of the following is on advantage of a decentralized organizational structure, as opposed to a centralized structure?

Question173: Which of the following is a distinguishing feature of managerial accounting, which is not applicable to financial accounting?

Question174: Which of the following best explains why an organization would enter into a capital lease contract?

Question175: Which of the following financial statements provides the best disclosure of how a company's money was used during a particular period?

Question176: Which of the following scenarios indicates an effective use of financial leverage?

Question177: While conducting an audit of the accounts payable department, an internal auditor found that 3% of payments made during the period under review did not agree with the submitted invoices. Which of the following key performance indicators (KPIs) for the department would best assist the auditor in determining the significance of the test results?

Question178: Which of the following techniques would best detect an inventory fraud scheme?

Question179: If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?

Question180: In an organization that produces chocolate, the leadership team decides that the organization will open a milk production facility for its milk chocolate. Which of the following strategies have the organization chosen?

Question181: 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?

Question182: 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?

Question183: Which of the following information security controls has the primary function of preventing unauthorized outside users from accessing an organization's data through the organization's network?

Question184: Which of these instances accurately describes the responsibilities for big data governance?

Question185: Which of the following statements is true regarding the capital budgeting procedure known as discounted payback period?

Question186: Which of the following analytical techniques would an internal auditor use to verify that none of an organization's employees are receiving fraudulent invoice payments?

Question187: Which of the following security controls would be appropriate to protect the exchange of information?

Question188: An organization was forced to stop production unexpectedly, as raw materials could not be delivered due to a military conflict in the region. Which of the following plans have most likely failed to support the organization?

Question189: With regard to disaster recovery planning, which of the following would most likely involve stakeholders from several departments?

Question190: The budgeted cost of work performed is a metric best used to measure which project management activity?

Question191: Which of the following security controls focuses most on prevention of unauthorized access to the power plant?