According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?

• A.To ensure that adequate controls exist to prevent any significant business interruptions.
• B.To identify and address potential security weaknesses within the system.
• C.To ensure that tests contribute to improvement of the program.
• D.To ensure that deficiencies identified by the audit are promptly addressed.

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When a multinational entity decides to sell its products abroad, one of the risks it faces is that the government of the foreign market charges the entity with dumping. Dumping occurs when:

• A.The same product sells at different prices in different countries.
• B.An entity charges less than it costs to make the product to enter or win a market.
• C.Lower quality versions of the product are sold abroad so as to be affordable.
• D.Transfer prices are set artificially high so as to minimize tax payments.

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A bond that matures after one year has a face value of S250,000 and a coupon of $30,000. if the market price of the bond is 5265,000, which of the following would be the market interest rate?

• A.12 percent.
• B.More than 12 50 percent.
• C.Less than 12 percent.
• D.Between 12.01 percent and 12.50 percent.

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If the amount to be received in 4 years is US $137,350, and given the correct factor from the 10% time-value-of-money table below, what is the current investment?

• A.US $30,034.33
• B.US $43,329.44
• C.US $93.810.05
• D.US $201,094.14

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Organization X owns a 38 percent equity stake in Organization Y. Which of the following statements is true regarding the financial treatment for this relationship?

• A.Y should not be reported by X as X does not have a controlling interest
• B.Y should be reported as a footnote to X's financial statements
• C.Y should be listed as an investment asset on X's balance sheet
• D.X must consolidate the financial statements for both organizations

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