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NEW QUESTION: 1
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

NEW QUESTION: 2
A successful risk-based IT audit program should be based on:
A. an effective scoring system.
B. an effective organization-wide brainstorm session.
C. an effective departmental brainstorm session.
D. an effective yearly budget.
E. an effective PERT diagram.
F. None of the choices.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
A successful risk-based IT audit program could be based on an effective scoring system. In establishing a scoring system, management should consider all relevant risk factors and avoid subjectivity. Auditors should develop written guidelines on the use of risk assessment tools and risk factors and review these guidelines with the audit committee.

NEW QUESTION: 3
Yummy Doughnuts (YD) sells a variety of doughnuts and other related items through both company-owned locations and franchise locations. YD has experienced significant growth over the past five years.
However, barriers to entry are low and competition is increasing.
Linda Haas, CFA, follows YD for Gibraltar Capital. Gibraltar Capital prides itself on its thorough fundamental analysis of investment opportunities. The company uses a bottom-up approach to the investment process. Haas's security selection process utilizes residual income models to determine a stock's intrinsic value. Haas obtains YD's 2008 financial statements shown in Exhibit 1. In addition, Haas provides supporting information about YD's financials and other related material found in Exhibit 2.

Haas makes the following statements during her YD presentation to the investment committee.
Statement 1: Based on ROE mean reversion, YD's continuing residual income is assumed to decline to zero over time.
Statement 2: The residual income model states that if YD's ROE equals its equity cost of capital, then YD's intrinsic value will equal its book value per share.
Haas notes that the multi-stage residual equity income model captures more detail in calculating YD's intrinsic value. An assumption of the model is that ROE fades to the cost of equity over time, which is known as a persistence factor (varying from 0 to 1). Identify which characteristic indicates a higher persistence of abnormal earnings.
A. Low dividend payout.
B. High dividend yield.
C. Low price to earnings ratio.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
It is difficult for a company to maintain a high ROE because of competition. The persistence factor will be lower for those companies. A company that has a low dividend payout has greater growth opportunities than a company with a high dividend payout. The greater growth opportunities should support a higher persistence factor. (Study Session 13, LOS 43.J)

NEW QUESTION: 4
What is the name for a stand-alone digital storage system connected directly to a server HBA or workstation HBA?
A. Direct Attached Storage (DAS)
B. Network Attached Storage (NAS)
C. Small Computer System Interface (SCSI)
D. Storage Area Network (SAN)
Answer: D
Explanation:
Explanation/Reference:
Explanation:
SAN stands for storage area network. It is an architecture to attach remote computer storage devices to servers in such a way that the devices appear as locally attached to the operating system. Sharing storage usually simplifies storage administration and adds flexibility since cables and storage devices do not have to be physically moved to shift storage from one server to another. SANs also tend to enable more effective disaster recovery processes.
An HBA is a Host Bus Adapter. This is used to connect the computer (server or workstation) to the SAN.
Incorrect Answers:
A: SCSI is a computer bus used to move data to and from computer storage devices such as hard drives and tape drives.
B: Direct-attached storage (DAS) refers to a digital storage system directly attached to a server or workstation, without a storage network in between.
A typical DAS system is made of a data storage device connected directly to a computer through a host bus adapter (HBA). Between those two points, there is no network device (like hub, switch, or router), and this is the main characteristic of DAS. The main protocols used for DAS connections are ATA, SATA, eSATA, SCSI, SAS, and Fibre Channel.
C: Network Attached Storage (NAS) is the hard disk storage that is set up with its own network address rather than being attached to the unit computer that is serving applications of a network's workspace users.
A fully-featured operating system is not needed on a NAS device, so often a stripped-down operating system is used. NAS provides both storage and a file system.