The chief audit executive (CAE) has been asked to evaluate the chief technology officer's proposal to outsource several key functions in the organization's IT department. Which of the following would be the most appropriate action for the CAE to determine whether the proposal aligns with the organization's strategy?

• A.Identify key performance measures and data sources.
• B.Ascertain whether governance and approval processes are transparent, documented, and completed.
• C.Perform a due diligence review or asses management's review of provider operations.
• D.Understand strategic context and evaluate whether supporting information is reliable and complete.

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A major justification for investments in computer-integrated manufacturing CIM) projects is:

• A.Reduction in the costs of spoilage, reworked units, and scrap.
• B.Lower Carr ring amount and depreciation expense for factory equipment.
• C.Increased working capital.
• D.Stabilization of market share.

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The sales manager for a builder of custom yachts developed the following conditional table for annual production and sales:

According to the table, how many yachts should be built?

• A.10
• B.20
• C.30
• D.50

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What is the tax expense that would have been reported on Lally's income statement for the year ended December 31 Year 1?

• A.US $1,560,000
• B.US $1.528.000 C US $1.600.000
  D US $1,568,000

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A control for ensuring that the source code and the executable code for a program match is:

• A.Verifying that the program move request is authorized.
• B.Requiring program, system, and parallel testing of the code.
• C.Authorizing programmer access to test libraries only.
• D.Recompiling source code into the production load library.

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