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NEW QUESTION 29
The best reason for separating the cash-receiving function from the related record-keeping function is to:

• A. Improve physical security over the cash-receiving function.
• B. Segregate cash payments from cash receipts.
• C. Minimize misappropriations in cash receipts.
• D. Provide accountability for cash received.

Answer: C

NEW QUESTION 30
An organization has developed a model to determine the most profitable rate of production. The organization varies the cost of labor in the model to determine how much the changes affect the optimal production level. Which type of analysis does this scenario demonstrate?

• A. Sensitivity.
• B. Decision.
• C. Critical path.
• D. Forecast.

Answer: A

NEW QUESTION 31
Which of the following controls is not appropriate for sales in a manufacturing organization?

• A. Goods returned are inspected for damage by the receiving department for proper disposition.
• B. Customers' orders are recorded promptly.
• C. Sales department approval is required for credit sales transactions.
• D. Goods shipped are matched with valid customer orders.

Answer: C

NEW QUESTION 32
Which of the following would be a violation of the objectivity of a certified internal auditor?
1. Accepting a motivational book from a major vendor.
2. Attending a professional sporting event as the guest of a corporate supplier.
3. Performing an internal audit engagement for a division 18 months after having controllership responsibility for that division.
4. Designing and implementing a corporate-wide utilities cost containment program.

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

Answer: D

Explanation:
Section: Volume C

NEW QUESTION 33
A production division received 45 responses to a customer-service survey distributed to 100 purchasing departments randomly selected from all customers who made purchases in the prior 12 months. Which of the following is the most likely reason that the division manager would be concerned about nonresponse bias in this situation?

• A. Those who did not respond may be systematically different from those who did.
• B. The sample means and standard errors are more difficult to compute.
• C. The sample size is too small.
• D. Confidence intervals are narrower.

Answer: A

NEW QUESTION 34
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