The process of scenario planning begins with which of the following steps?
Correct Answer: D
Question 57
The budgeted cost of work performed is a metric best used to measure which project management activity?
Correct Answer: D
Understanding the Metric: * The Budgeted Cost of Work Performed (BCWP), also known as Earned Value (EV), represents the value of work actually performed up to a specific date, based on the budgeted cost. * This metric is part of Earned Value Management (EVM) and is used to track project performance by comparing planned and actual progress. Why Cost Control? * Cost control involves monitoring expenses, comparing actual performance with the budget, and taking corrective actions when needed. * BCWP is a core metric in cost control as it helps in determining whether a project is staying within budget. Why Other Options Are Incorrect: * A. Resource planning: Focuses on allocating personnel, equipment, and materials but does not deal with financial performance. * B. Cost estimating: Involves predicting project costs before execution, but BCWP is used during the project, not during estimation. * C. Cost budgeting: Refers to setting a budget, whereas BCWP measures how much work has been performed relative to that budget. IIA Standards and References: * IIA Standard 2120 - Risk Management: Internal auditors should assess cost control mechanisms to manage financial risks. * IIA Practice Guide: Auditing Capital Projects (2016): Emphasizes earned value management as a key cost control measure. * PMBOK Guide - Cost Management Knowledge Area: Highlights BCWP as a crucial tool for monitoring and controlling project costs.
Question 58
Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system? 1. Encryption. 2. Traffic padding. 3. Edit checks. 4. Structured data format.
Correct Answer: B
Question 59
Which of the following is a major element of the ISO 9000 quality management system standards?
Correct Answer: D
ISO 9000: 2008 provides a model for quality assurance programs. It requires an entity to demonstrate its ability to increase customer satisfaction through improving the QMS and ensuring conformity with requirements.
Question 60
A company purchased a new machine on an installment payment plan and is to make equal annual payments beginning one year from the date of purchase. Using an interest rate of 10%, the cost of the machine can be determined by multiplying one payment by the:
Correct Answer: D
The cost of the machine is the present value of the annuity the series of equal periodic payments). The annuity is an ordinary annuity because the payments begin one period after the date of purchase. The cost therefore equals the periodic payment times the interest factor for an ordinary annuity of one currency unit for a specified number of equal periodic payments discounted at a given interest rate.
