Which of the following key performance indicators would serve as the best measurement of internal audit innovation?
Correct Answer: C
Innovation in internal audit is reflected in how the function applies new technologies, methodologies, and thought leadership. Measuring staff application of technology in audit fieldwork and their engagement in professional organizations/publications demonstrates innovation and forward-looking practices. Options A, B, and D measure performance, satisfaction, or compliance but do not specifically address innovation. Reference: IIA Practice Guide - Measuring Internal Audit Effectiveness and Efficiency.
Question 237
A company in the process of analyzing inventory safety stock levels is having difficulty because demand vanes widely from one week to the next. However, it has been discovered that demand occurs according to a probability distribution. Which of the following is a stochastic model that the company could use in this situation?
Correct Answer: A
A stochastic model is probabilistic. Markov processes quantify the likelihood of a future event based on the current state of the process.
Question 238
An inventory planning method that minimizes inventories by arranging to have raw materials and subcomponents arrive immediately preceding their use is called:
Correct Answer: C
JIT is a manufacturing philosophy popularized by the Japanese that combines purchasing, production, and inventory control. As with MRP. minimization of inventory is a goal; however. JIT also encompasses changes in the production process itself. An emphasis on quality and a "pull" of materials related to demand are key differences between JIT and MRP. The factory is organized so as to bring materials and tools close to the point of use rather than keeping them in storage areas. A key element of the JIT system is reduction or elimination of waste of materials, labor, factory space, and machine usage. Minimizing inventory is the key to reducing waste. When a part is needed on the production line, it arrives just in time, not before. Daily deliveries from suppliers are the ultimate objective, and some Japanese users have been able to get twice-daily deliveries.
Question 239
For employees, the primary value of implementing job enrichment is which of the following?
Correct Answer: C
Job enrichment is a motivational strategy where employees are given more control, responsibility, and meaningful tasks in their roles. It aims to increase job satisfaction, personal growth, and motivation by making work more engaging and fulfilling. Let's analyze each option: * Option A: Validation of the achievement of their goals and objectives * Incorrect. * While job enrichment may contribute to achieving personal and professional goals, its primary purpose is not just validation but improving employee engagement and motivation. * Option B: Increased knowledge through the performance of additional tasks * Incorrect. * Job enlargement (not job enrichment) involves assigning additional tasks without necessarily increasing responsibility or autonomy. * Job enrichment focuses on providing meaningful and challenging work, not just adding tasks. * Option C: Support for personal growth and a meaningful work experience * Correct. * Job enrichment enhances job satisfaction by giving employees greater autonomy, responsibility, and purpose in their roles. * It encourages personal and professional development, leading to a more meaningful work experience. * IIA Reference: Internal auditors assessing human resource and organizational performance management focus on employee motivation strategies, including job enrichment. (IIA Practice Guide: Talent Management and Human Capital Risks) * Option D: An increased opportunity to manage better the work done by their subordinates * Incorrect. * Job enrichment does not necessarily focus on managing subordinates but rather on enhancing individual job roles by making them more fulfilling. Thus, the verified answer is C. Support for personal growth and a meaningful work experience.
Question 240
Which of the following is true regarding reporting on the quality assurance and improvement program (QAIP)?
Correct Answer: A
The CAE must communicate the results of the QAIP, including both ongoing monitoring and periodic assessments, to the board and senior management. Specifically, results of ongoing monitoring must be reported annually, ensuring the board remains informed about the internal audit activity's quality and conformance. Options B and C are incorrect because results are reported after completion, not before. Option D is useful for external assessors but not a reporting requirement. Reference: IIA Standards - Standard 1320: Reporting on the Quality Assurance and Improvement Program.
