INTERNAL AUDIT - SESSION 2

What is the primary purpose of an internal audit in strategic management?

• To evaluate and improve the effectiveness of risk management and governance processes.
• To manage day-to-day operational tasks.
• To create marketing strategies for the organization.
• To conduct financial audits for compliance purposes.

Which of the following is NOT a function of management? 

• Planning 

   

• Organizing

• Marketing

• Controlling

What is the main goal of value chain análisis (VCA)? 

• To focus solely on customer satisfaction without considering competition.
• To reduce production costs and increase profit margins.
• To identify value-creating activities and enhance competitive advantage.
• To eliminate all non-value-adding activities.

Which of the following is an example of a financial ratio used to assess a firm’s liquidity? 

• Debt-to-equity ratio 

• Current ratio

• Return on investment (ROI)

• Earnings per share (EPS) 

What does the breakeven point represent? 

• The level of sales where total revenues equal total costs.
• The point where profits are maximized.
• The sales volume needed to achieve a specific profit margin.
• The level of sales where total costs exceed total revenues.

Which of the following is a key component of organizational culture? 

• Leadership
• Structure
• Mission
• Values

What is the purpose of an Internal Factor Evaluation (IFE) Matrix?

• To evaluate a company's internal strengths and weaknesses.
• To assess market trends and opportunities.
• To analyze competitor strategies.
• To determine external economic factors affecting the business.

Which of the following is an example of a downstream activity? 

• Manufacturing of raw materials
• Market research for new products
• Customer feedback collection
• Distribution of products to retailers

What is the primary focus of research and development (R&D)? 

• Customer service improvement
• Cost reduction and efficiency
• Innovation and product development.

• Market analysis and forecasting

Which of the following tools is used to compare a firm’s performance with industry benchmarks? 

• Financial analysis software
• Market research tools
• Customer feedback platforms
• Benchmarking tools