Question 1

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?

Options :

A : To inform the classification of the data population.

B : To determine the completeness and accuracy of the data.

C : To identify whether the population contains outliers.

D : To determine whether duplicates in the data inflate the range.

Answer: C

Question 2

The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

Options :

A : Use an aging schedule to more closely estimate uncollectible accounts.

B : Eliminate the need for an allowance for doubtful accounts.

C : Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.

D : Use a method that approximates the matching principle.

E :

Answer: D

Question 3

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

Options :

A : Input controls.

B : Segregation of duties.

C : Physical controls.

D : Integrity controls.

Answer: D

Question 4

Which of the following is the most likely reason an organization may decide to undertake a stock split?

Options :

A : To keep stock price constant.

B : To keep shareholders' equity constant.

C : To increase shareholders' equity.

D : To enhance the stock liquidity.

Answer: D

Question 5

Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

Options :

A : Both the key used to encrypt the data and the key used to decrypt the data are made public.

B : The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

C : The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

D : Both the key used to encrypt the data and the key used to decrypt the data are made private.

Answer: C

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