- (Exam Topic 2)
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?

1. A. Normalize the data
2. B. Obtain the data
3. C. identify the risks
4. D. Analyze the data

Correct Answer: D

- (Exam Topic 2)
Which of the following financial instruments should be recorded at fair market value on the financial statements?

1. A. Accounts receivable in the short term
2. B. Bonds to be held to maturity.
3. C. Notes receivable in the short term
4. D. Bonds to be held for sale in the short term.

Correct Answer: D

- (Exam Topic 2)
An organization's account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?

1. A. A debit to office supplies on hand for S2.500
2. B. A debit to office supplies on hand for $11,500
3. C. A debit to office supplies on hand for S20.500
4. D. A debit to office supplies on hand for S42.500

Correct Answer: A

- (Exam Topic 1)
Which of the following phases of a business cycle are marked by an underuse of resources?
* 1. The trough.
* 2. The peak.
* 3. The recovery.
* 4. The recession.

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

Correct Answer: B

- (Exam Topic 1)
Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

1. A. The cost of goods sold for the period will be understated.
2. B. The cost of goods sold for the period will be overstated.
3. C. The net income for the period will be understated.
4. D. There will be no effect on the cost of goods sold or the net income for the period.

Correct Answer: B