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IIA Business Knowledge for Internal Auditing Sample Questions (Q129-Q134):

NEW QUESTION # 129
The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas, and he decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?
1. Favorable labor efficiency variance.
2. Adverse labor rate variance.
3. Adverse labor efficiency variance.
4. Favorable labor rate variance.

A. 2 and 3.
B. 1 and 4.
C. 3 and 4.
D. 1 and 2.

Answer: D

NEW QUESTION # 130
When financial statements are being prepared, which of the following items requires that accountants estimate the effects of future conditions and events?

A. The purchase price for an acquired building.
B. The amount of recoverable mineral reserves.
C. The physical quantity of inventory.
D. The price of a marketable security.

Answer: B

Explanation:
Changes in estimates used in accounting are necessary consequences of periodic presentations of financial statements. Preparing financial statements requires estimating the effects of future events. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and residual values of depreciable able assets, warranty costs, periods benefited by a deferred cost, And recoverable mineral reserves.

NEW QUESTION # 131
Which of the following is a cybersecurity monitoring activity that involves assessing the strength of an organization's IT protection?

A. Wireless access controls
B. Malware defense
C. Boundary defense
D. Penetration tests

Answer: C

NEW QUESTION # 132
According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?
1. Organizational governance.
2. Organizational operations.
3. Organizational information systems.
4. Organizational structure.

A. 1, 2, and 3 only
B. 1, 2, and 4 only
C. 2 and 4 only
D. 1 and 3 only

Answer: A

NEW QUESTION # 133
An internal auditor observed that the organization's disaster recovery solution will make use of a cold site in a town several miles away. Which of the following is likely to be a characteristic of this disaster recovery solution?

A. Data is synchronized in real time.
B. Servers are not available and need to be procured.
C. Recovery time is expected to be less than one week.
D. Recovery resources and data restore processes have been defined.

Answer: B

Explanation:
Comprehensive and Detailed In-Depth Explanation:
A cold site is a disaster recovery location that provides only basic infrastructure (e.g., power, cooling, and space) but does not have pre-installed IT systems. Organizations must procure and install servers before recovery can begin.
Option A (Real-time data synchronization) applies to hot sites, which maintain fully operational backup systems.
Option B (Recovery time under one week) is more characteristic of warm or hot sites, as cold sites require longer setup times.
Option D (Defined recovery processes) applies to all disaster recovery plans and does not differentiate cold sites.
Since a cold site lacks pre-installed servers, Option C is the correct answer.
Reference: IIA IT Disaster Recovery Planning - Cold, Warm, and Hot Sites

NEW QUESTION # 134
......

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