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IIA Business Knowledge for Internal Auditing Sample Questions (Q65-Q70):

NEW QUESTION # 65
CORRECT TEXT
A has a times-interest-earned ratio of:
A Pour times
B. Five times
C. 10 times
D. 15 times

Answer:

Explanation:
B

NEW QUESTION # 66
One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:

A. Emergency move procedures are documented and followed.
B. Movement from the test library to the production library is controlled.
C. Program versions are synchronized across the network.
D. Appropriate users are involved in program change testing.

Answer: C

NEW QUESTION # 67
Under the balanced scorecard concept, employee satisfaction and retention are measures used under which of the following perspectives?

A. Customer.
B. Learning and growth.
C. Financial.
D. Internal business.

Answer: B

Explanation:
The balanced scorecard is an accounting report that connects the firm's critical success factors CSFs) determined in a strategic analysis to measures of its performance. CSFs are financial and nonfinancial measures. For the learning, growth, and innovation perspective, the CSFs may be development of new products, promptness of their introduction, human resource development, morale, and competence of the workforce. Measures of employee satisfaction, retention, and competence may include RD personnel qualifications, hours of training, skill set levels attained, personnel turnover, and personnel complaints and survey results.

NEW QUESTION # 68
Which one of the following items is not directly reflected in the basic economic order quantity (EOQ) model?

A. Public warehouse rental charges.
B. Inventory obsolescence.
C. Quantity discounts lost on inventory purchases
D. Interest on invested capital.

Answer: C

Explanation:
The basic EOQ model minimizes the sum of ordering (or setup) and carrying costs. Included in the formula are annual demand, ordering (or setup) costs, and carrying costs. Carrying costs include warehousing costs, insurance, spoilage, obsolescence, and interest on invested capital. The cost of the inventory itself and any quantity discounts lost on inventory purchases are not components of the EOQ model.

NEW QUESTION # 69
Which of the following statements is true concerning the basic accounting treatment of a partnership?

A. The basis for sharing net incomes or net kisses must be fixed.
B. The initial investment of each partner should be recorded at book value.
C. A partner's capital only changes due to net income or net loss.
D. The ownership ratio identifies the basis for dividing net income and net toss.

Answer: B

NEW QUESTION # 70
......

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