Prepare IIA-CIA-Part3-3P Exam with Using IIA-CIA-Part3-3P Dump Questions

1. Which of the following risks is best addressed by encryption?

2. Which of the following practices impacts copyright issues related to the manufacturer of a smart device?

3. An internal auditor for a pharmaceutical company is planning a cybersecurity audit and conducting a risk assessment.

Which of the following would be considered the most significant cyber threat to the organization?

4. Data encryption is an example of which of the following controls?

5. The leadership of an organization encourages employees to form voluntary problem-solving groups whereby several employees from the same work area meet regularity during work hours to discuss improvements and creative ways to reduce costs .

Which of the following best describes this approach?

6. An organization is considering the outsourcing of its business processes related to payroll and information technology functions .

Which of the following is the most significant area of concern for management regarding this proposed agreement?

7. Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?

8. in which of the following technical infrastructure audits should attention be turned to physical security and environmental controls?

9. Which of the following actions is most likely to gain support for process change?

10. Which of the following statements is true regarding a bring-your-own-device (BYOD) environment?

11. A global business organization is selecting managers to post to various international (expatriate) assignments.

In the screening process, which of the following traits would be required to make a manager a successful expatriate?

1) Superior technical competence.

2) Willingness to attempt to communicate in a foreign language.

3) Ability to empathize with other people.

12. According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?

13. An organization has instituted a bring-your-own-device (BYOD) work environment.

Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?

14. Which of the following statements about mentoring is true?

1) Mentoring can be used effectively for increasing employee retention

2) Mentoring can be used effectively in reducing employees frustration.

3) Mentoring can be used effectively for increasing organization communication.

4) Mentoring can be used effectively as a short term activity consisting of instruction and training

15. A capital investment project will have a higher net present value, everything else being equal, if it has:

16. Which of the following professional organizations sets standards for quality and environmental audits?

17. An organization has a complex systems infrastructure consisting of multiple internally developed, off the shelf, and purchased but significantly customized applications. Some of these applications share databases or process data that is used by another stand-alone application, and interfaces have been written to move data between these applications as needed through batch processing.

Which of the following situations presents the greatest risk exposure given this environment?

18. Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

19. Which of the following factors is most likely to lead to a lack of cohesiveness in a project team?

20. An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two.

Which of the following could be the reason for the decline in the net profit margin for year two?

21. Which of the following is an example of a phishing attack?

22. When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

23. A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:

24. An organization accomplishes its goal to obtain a 40 percent share of the domestic market, but is unable to get the desired return on investment and output per hour of labor.

Based on this information the organization is most likely focused on which of the following?

25. Which of the following would not impair the objectivity of internal auditor?

26. Which of the following is a characteristic of big data?

27. The process of scenario planning begins with which of the following steps?

28. The audit committee of a global corporation has mandated a change in the organization's business ethics policy .

Which of the following approaches describes the best way to accomplish the policy's diffusion worldwide?

29. Which of the following should be established by management during implementation of big data systems to enable ongoing production monitoring?

30. Which of the following is an example of an application control?

31. While auditing an organization's customer call center, an internal auditor notices that key performance indicators show a positive trend despite the fact that there have been increasing customer complaints over the same period.

Which of the following audit recommendations would most likely correct the cause of this inconsistency?

32. A manager has difficulty motivating staff to improve productivity, despite establishing a lucrative individual reward system .

Which of the following is most likely the cause of the difficulty?

33. All of the following are true with regard to the first-in, first-out inventory valuation method except:

34. An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement .

Which of the following approaches is most appropriate to address this concern?

35. An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

36. Organizations mat adopt just-in-time purchasing systems often experience which of the following?

37. Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?

38. Which of the following is the most likely reason an organization may decide to undertake a stock split?

39. Which of the following statements is true regarding outsourced business processes?

40. An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization's needs, in order to quickly recover operational capability in the event of a disaster.

Which of the following best describes this approach to disaster recovery planning?

41. According to IIA guidance on IT which of the following best describes a but recovery and restore processes have not been defined?

42. During which phase of the contacting process ate contracts drafted for a proposed business activity?

43. Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

44. Maintenance cost at a hospital was observed to increase as activity level increased.

The following data was gathered:

Activity Level -

Maintenance Cost

Month

Patient Days

January

5,600

$7,900

February

7,100

$8,500

March

5,000

$7,400

April

6,500

$8,200

May

7,300

$9,100

June

8,000

$9,800

If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

45. Which of me following application controls is the most dependent on the password owner?

46. Which of the following is a cybersecurity monitoring activity intended to deter disruptive codes from being installed on an organization's systems?

47. Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?

1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.

2) The IAA must assess whether the IT governance of the organization supports the organization’s strategies and objectives.

3) The IAA may assess whether the IT governance of the organization supports the organization’s strategies and objectives.

4) The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organizationâ™s strategies and objectives.

48. When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:

49. Which of the following is likely to occur when an organization decides to adopt a decentralized organizational structure?

50. Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?

51. Which of the following IT disaster recovery plans includes a remote site designated for recovery with available space for basic services, such as internet and telecommunications, but does not have servers or infrastructure equipment?

52. According to HA guidance or IT which of the following spreadsheets is most likely to be considered a high-risk user-develop application?

53. A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

54. With regard to project management when of the following statements about prefect crashing is true?

55. When using cost-volume-profit analysts which of the following will increase operating income once the break-even point has been reached?

56. Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?

57. Which of the following is true regarding the COSO enterprise risk management framework?

58. According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?

1) Every employee generally has a responsibility for ensuring the success of CSR objectives.

2) The board has overall responsibility for the effectiveness of internal control processes associated with CSR.

3) Public reporting on the CSR governance process is expected.

4) Organizations generally have flexibility regarding what is included in a CSR program.

59. Organization X owns a 38 percent equity stake in Organization Y .

Which of the following statements is true regarding the financial treatment for this relationship?

60. Which of the following controls would be the most effective in preventing the disclosure of an organization’s confidential electronic information?

61. Which of the following descriptions of the internal control system are indicators that risks are managed effectively?

1) Existing controls promote compliance with applicable laws and regulations.

2) The control environment is designed to address all identified risks to the organization.

3) Key controls for significant risks to the organization remain consistent over time.

4) Monitoring systems are in place to alert management to unexpected events.

62. An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables.

If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?

63. Which of the following assists in ensuring mat information exchanged over IT systems is encrypted?

64. During a review of a web-based application used by customers to check the status of their bank accounts, it would be most important for the internal auditor to ensure that:

65. In which of the following scenarios would transfer pricing be used?

66. Which of the following IT operational areas is responsible for the integrity of data flow within an organization?

67. Which mindset promotes the most comprehensive risk management strategy?

68. According to IIA guidance on IT auditing, which of the following would not be an area examined by the internal audit activity?

69. Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

70. Which of me Wowing summarizes information about the cash receipts and cash payments for a specific time period?

71. In mergers and acquisitions, which of the following is an example of a horizontal combination?

72. An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent.

If the organization has total debt of $1 000 000 what is the organization's sales level?

73. Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?

74. According to MA guidance on IT. which of the following best describes a logical access control?

75. Which of the following statements is true concerning the basic accounting treatment of a partnership?

76. According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?

77. According to IIA guidance, which of the following is a primary component of a network security strategy?

78. Which of the following is an example of an application system control?

79. Which of the following steps should an internal auditor take during an audit of an organization's business continuity plans?

1) Evaluate the business continuity plans for adequacy and currency.

2) Prepare a business impact analysis regarding the loss of critical business.

3) Identify key personnel who will be required to implement the plans.

4) Identify and prioritize the resources required to support critical business processes.

80. A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services .

Which of the following best describes the restaurant's strategy?

81. Which of the following is an element of effective negotiating?

82. Which of the following data analytics tools would be applied by an internal audit activity positioned at the lowest level of maturity?

83. Which of the following is the first step an internal audit activity should undertake when executing a data analytics process?

84. In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners.

Which of the following network types is illustrated by this scenario?

85. An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500 .

Which of the following statements is true regarding this transaction?

86. An organization's account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand.

Based on this information, what would be recorded in the adjusting entry at the end of year two?

87. Which of the following should an organization consider when developing strategic objectives for its business processes?

1) Contribution to the success of the organization.

2) Reliability of operational information.

3) Behaviors and actions expected of employees.

4) How inputs combine with outputs to generate activities.

88. While auditing an organization's customer call center, an internal auditor notices that key performance indicators show a positive trend, despite the fact that there have been increasing customer complaints over the same period.

Which of the following audit recommendations would most likely correct the cause of this inconsistency?

89. An organization's board of directors is particularly focused on positioning the organization as a leader in the industry and beating the competition.

Which of the following strategies offers the greatest alignment with the board's focus?

90. An employee's mobile device used for work was stolen in a home burglary.

Which control, if already implemented by the organization, would best prevent unauthorized access to organizational data stored on the employee's device?

91. Which of the following strategies is most appropriate for an industry that is in decline?

92. Which of the following budgets must be prepared first?

93. According to IIA guidance, which of the following statements is true with regard to workstation computers that access company information stored on the network?

94. An organization invests excess snort-term cash in trading securities. When of the following actions should an internal auditor take to test the valuation of those securities?

95. CORRECT TEXT

An organization recently documented its procedures for recovering systems and data after a disaster How are these documented procedures most likely to be used during a disaster simulation exercise?

96. Preferred stock is less risky for investors than is common stock because:

97. If a just-in-time purchasing system is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?

98. Which of the following stages of contracting focuses on aligning the markets with objectives of the organization?

99. Which of the following is an example of a physical control?

100. Which of the following application controls verifies the accuracy of transaction results in a system?

101. Which of following best demonstrates the application of the cost principle?

102. International marketing activities often begin with:

103. Which of the following statements is true regarding partnership liquidation?

104. Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables.

Which of the following would be the best argument for using the direct write-off method?

105. An organization is developing a new online collaboration tool for employees. The tool includes a homepage that is customized to each employee according to his department and job function.

Which of the following engagements should be conducted to ensure that the organization has included all departments and job functions in the system before it is implemented?

106. An internal auditor is reviewing results from software development integration testing .

What is the purpose of integration testing?

107. An internal auditor reviews a data population and calculates the mean, median, and range.

What is the most likely purpose of performing this analytic technique?

108. Which of the following cybersecurity-related activities is most likely to be performed by the second line of defense?

109. Which stage of group development is characterized by a decrease in conflict and hostility among group members and an increase in cohesiveness?

110. An employee frequently uses a personal smart device to send and receive work-related emails .

Which of the following controls would be most effective to mitigate security risks related to these transmissions?

111. During an audit of the organization's annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years .

Which of the following is the most likely explanation for this increase?

112. Which of the following describes a third-party network that connects an organization specifically with its trading partners?

113. An internal auditor reviewed Finance Department records to obtain a list of current vendor addresses. The auditor then compared the vendor addresses to a record of employee addresses maintained by the Payroll Department

Which of the following types of data analysis did the auditor perform?

114. According to IIA guidance, which of the following best describes the activities that occur during the conversion phase of an IT project?

115. Which of the following statements about slack time and milestones are true?

1) Slack time represents the amount of time a task may be delayed without delaying the entire project.

2) A milestone is a moment in time that marks the completion of the project's major deliverables.

3) Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.

4) A milestone requires resource allocation and needs time to be completed.

116. According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?

117. According to Maslow's hierarchy of needs theory, which of the Mowing best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

118. A rapidly expanding retail organization continues to be tightly controlled by its original small management team .

Which of the following is a potential risk in this vertically centralized organization?

119. An internal auditor is assessing the risks related to an organization's mobile device pokey She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems.

Which of the following types of smart device risks should the internal auditor be most concerned about?

120. Which of me following storage options would give the organization the best chance of recovering data?

121. A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle.

Which of the following statements true recording these costs?

122. Which of the following is a disadvantage in a centralized organizational structure?

123. Which of the following are appropriate functions for an IT steering committee?

1) Assess the technical adequacy of standards for systems design and programming.

2) Continually monitor of the adequacy and accuracy of software and hardware in use.

3) Assess the effects of new technology on the organization`s IT operations.

4) Provide broad oversight of implementation, training, and operation of new systems.

124. Which of the following statements regarding database management systems is not correct?

125. Which of me following statements is true regarding the reporting of tangible and intangible assets?

126. Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

127. Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?

1) Encryption.

2) Traffic padding.

3) Edit checks.

4) Structured data format.

128. For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?

1) It significantly raises compensation and staffing costs.

2) It produces resentment among the organization's employees in host countries.

3) It limits career mobility for parent-country nationals.

4) It can lead to cultural myopia.

129. An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000 .

Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

130. Which of the following attributes of data is the most significantly impacted by the internet of things?

131. Which of the following is an example of a physical security control that should be in place at an organization's data center?

132. In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?

133. Which of the following is not a barrier to effective communication?

134. During which of the following phases of contracting does the organization analyze whether the market is aligned with organizational objectives?

135. Which of the following is not a method for implementing a new application system?

136. Which of the following statements is true regarding an organization's inventory valuation1?

137. An internal auditor is evaluating an organization's business continuity management program According to the guidance on IT.

Which of the following tests would best demonstrate the ability to perform Key processes without significant problems?

138. Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?

139. A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made.

The most likely structure for this organization would be:

140. A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing.

The best approach for detecting missing rows in spreadsheet data would be to:

141. As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized data?

142. According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?

143. Which of the following is a primary objective of the theory of constraints?

144. Which of the following is an example of a risk avoidance response?

145. The greatest advantage of functional departmentalization is that it:

146. 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?

147. Which of the following re a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

148. According to Porter, which of the following is associated with fragmented industries?

149. The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?