In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?

• A.Developing the risk management strategy for the board's approval.
• B.Facilitating the identification and evaluation of risks.
• C.Giving assurance that risks are evaluated correctly.
• D.Coaching management in responding to risk.

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A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs. This is an example of which of the following?

• A.Job enlargement.
• B.Horizontal loading of the job.
• C.Job enlargement.
• D.Job rotation

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In the current year, a merchandising organization had an inventory turnover ratio of 3.0, which was less than the industry average of 6.5. Which of the following offers the most likely explanation for this difference?

• A.The organization has overstated the cost of purchases in its financial statements.
• B.The organization is holding obsolete or damaged items in its inventory
• C.The organization experienced an unexpectedly large increase in sales shortly before year end.
• D.The organization has understated the amount of inventory in its financial statements

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During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of
$1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

• A.$300,000
• B.$540,000
• C.$170,000
• D.$280,000

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Capacity overbuilding is most likely to occur when management is focused on which of the following?

• A.Production.
• B.Diversification.
• C.Finance.
• D.Marketing.

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