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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?
A. Cost of raw material inventory items is decreasing.
B. Process to manufacture goods is more efficient.
C. Labor productivity to produce goods is increasing.
D. Write-off of inventory is increasing.
Answer: D
When using data analytics during a review of the procurement process what is the first step in the analysis process?
A. Identity data anomalies and outliers
B. Define questions to be answered
C. identify data sources available
D. Determine the scope of the data extract
Answer: C
Which of the following is the best example of IT governance controls?
A. Controls that focus on segregation of duties, financial and change management
B. Personnel policies that define and enforce conditions for staff in sensitive IT areas
C. Standards that support IT policies by more specifically defining required actions
D. Controls that focus on data structures and the minimum level of documentation required
Answer: A
Which of the following characteristics applies to an organization that adopts a flat structure?
A. The structure is dispersed geographically.
B. The hierarchy levels are more numerous.
C. The span of control is wide.
D. The lower-level managers are encouraged to exercise creativity when solving problems.
Answer: C
Which of the following security controls would provide the most efficient and effective authentication for customers to access their online shopping account?
A. 12-digit password feature.
B. Security question feature.
C. Voice recognition feature.
D. Two-level sign-on feature.
Answer: A
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