Which of the Following Elements Is Important for an Internal

question 390

Multiple Choice

Which of the following elements is important for an internal auditor to consider when performing a privacy risk assessment of an organization?

• A) Areas where personal information is collected, used, stored, and disseminated. II. Inherent risk. III. Privacy practices of competitors. IV. Third-party recipients of information.
• B) III only
• C) I and II only
• D) I, II, and IV only
• E) I, II, III, and IV.

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Definitions:

Step-Down Method

An allocation technique used in cost accounting to distribute overhead costs among various cost centers or departments with multiple service departments.

Operating Department Y

A specific division within an organization that is focused on core operational tasks related to producing goods or services.

Step-Down Method

A cost-allocation method used in cost accounting to allocate costs of departments to products or services.

Administration Department

The division within an organization responsible for overseeing general operations and administrative tasks.