- (Exam Topic 2)
According to HA guidance or IT which of the following spreadsheets is most likely to be considered a high-risk user-develop application?

1. A. A revenue calculation spreadsheet supported with price and volume reports from the production department
2. B. An asset retirement calculation spreadsheet comprised of multiple formulas and assumptions
3. C. An ad-hoc inventory listing spreadsheet comprising details of written-off inventory quantitates
4. D. An accounts receivable reconciliation spreadsheet used by the accounting manager to verify balances.

Correct Answer: B

- (Exam Topic 2)
The balanced scorecard approach differs from traditional performance measurement approaches because it adds which of the following measures?
* 1. Financial measures
* 2. Internal business process measures.
* 3. Client satisfaction measures
* 4. Innovation and learning measures

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

Correct Answer: D

- (Exam Topic 1)
Under a value-added taxing system:

1. A. Businesses must pay a tax only if they make a profit.
2. B. The consumer ultimately bears the cost of the tax through higher prices.
3. C. Consumer savings are discouraged.
4. D. The amount of value added is the difference between an organization's sales and its cost of goods sold.

Correct Answer: B

- (Exam Topic 1)
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?

1. A. Submit batches of test transactions through the current system and verify with expected results.
2. B. Use a test program to simulate the normal data entering process.
3. C. Select a sample of records from the database and ensure it matches supporting documentation.
4. D. Evaluate compliance with the organization's change management process.

Correct Answer: C

- (Exam Topic 2)
When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

1. A. Direct product costs
2. B. Indirect product costs
3. C. Direct period costs
4. D. Indirect period costs.

Correct Answer: A