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NEW QUESTION: 1
The internal auditing department has been assigned to perform an audit of a division. Based on background review, the auditor knows the following about management policies:
Company policy is to rapidly promote divisional managers who show significant success. Thus, successful managers rarely stay at a division for more than three years.
A significant portion of division management's compensation comes in the form of bonuses based on the division's profitability.
The division was identified by senior management as a turnaround opportunity. The division is growing, but is not scheduled for a full audit by the external auditors this year. The division has been growing about 7% per year for the past three years and uses a standard cost system.
During the preliminary review, the auditor notes the following changes in financial data compared to the prior year:
Sales have increased by 10%.
Cost of goods sold has increased by 2%.
Inventory has increased by 15%.
Divisional net income has increased by 8%.
If the auditor decides that there are significant problems with the standard cost system, the next audit step to perform would be to
A. Select a random sample of products and review the standard cost build-up by tracing purchases to the standard cost record.
B. Use generalised audit software to prepare a listing of gross margin by product by comparing standard cost with sales price. Select all high-gross-margin items for further investigation.
C. Schedule all variances and determine their source and their disposition, that is, whether they are allocated to inventory or cost of goods sold.
D. Interview divisional management to determine why the standard cost system has not been updated on a timely basis.
Answer: C

NEW QUESTION: 2
Service A hashes a message, resulting in message digest X.
Service A encrypts message
digest X with its private key, resulting in cipher text X1.
Service A sends the message and
X1 to Service B.
Service B hashes the message, resulting in message digest Y.
Service B
decrypts X1 with Service A's public key, recovering message digest X1.
Service B
compares X and Y and finds them not to be equal. This proves that;
A. only Service A sent this particular message
B. the message was altered
C. All of the above
D. public key cryptography was used
Answer: C

NEW QUESTION: 3
An enterprise campus module is typically made up of four submodules, as described by the Cisco Enterprise Architecture Model. Which two submodules are part of this module? (Choose two.)
A. server farm/data center
B. enterprise branch
C. MAN
D. building distribution
E. DMZ
Answer: A,D