IIA IIA-CIA-PART3-3P Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3-3P Online Questions & Answers

• Question 111:

  An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

  A. Have to initiate a price war in order to enter the industry.
  B. Face increased production costs.
  C. Face increased marketing costs.
  D. Face higher learning costs, which would increase fixed costs.
  C. Face increased marketing costs.

• Question 112:

  Which of the following would most likely be found in an organization that uses a decentralized organizational structured?

  A. There is a higher reliance on organizational culture
  B. There are clear expectations set for employees
  C. There are electronic monitoring techniques employed
  D. There is a defined code for employee behavior
  B. There are clear expectations set for employees

• Question 113:

  The following transactions and events occurred during the year:

  - $300,000 of raw materials were purchased, of which $20,000 were returned because of defects

  -$600,000 of direct labor costs were incurred.

  -

  S750.000 of manufacturing overhead costs were incurred. What is the organization's cost of goods sold for the year?

  A. $1.480.000
  B. $1 500 000
  C. $1,610.000
  D. $1650 000
  B. $1 500 000

• Question 114:

  Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

  A. Times interest earned, return on assets, and inventory turnover.
  B. Accounts receivable turnover, inventory turnover in days, and the current ratio.
  C. Accounts receivable turnover, return on assets, and the current ratio.
  D. Inventory turnover in days, the current ratio, and return on equity.
  B. Accounts receivable turnover, inventory turnover in days, and the current ratio.

• Question 115:

  Which of the following risks would involve individuals attacking an oil company's IT system as a sign of solidarity against drilling in a focal area?

  A. Tampering
  B. Hacking
  C. Phishing
  D. Piracy
  B. Hacking

• Question 116:

  Multinational organizations generally spend more time and effort to identify and evaluate:

  A. Internal strengths and weaknesses.
  B. Break-even points.
  C. External trends and events.
  D. Internal risk factors.
  C. External trends and events.

• Question 117:

  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?

  A. Lack of coordination among different business units.
  B. Operational decisions are inconsistent with organizational goals.
  C. Suboptimal decision-making.
  D. Duplication of business activities.
  C. Suboptimal decision-making.

• Question 118:

  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:

  A. Adequate segregation of duties between data processing controls and file security controls.
  B. Documented procedures for remote job entry and for local data file retention.
  C. Emergency and disaster recovery procedures and maintenance agreements in place to ensure continuity of operations.
  D. Established procedures to prevent and detect unauthorized changes to data files.
  B. Documented procedures for remote job entry and for local data file retention.

• Question 119:

  According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:

  A. Recognize that organizations use different techniques for managing risk.
  B. Seek assurance that the key objectives of the risk management processes are being met.
  C. Determine and accept the level of risk for the organization.
  D. Treat the evaluation of risk management processes differently from the risk analysis used to plan audit engagements.
  C. Determine and accept the level of risk for the organization.

• Question 120:

  What would be the effect if an organization paid one of its liabilities twice during the year in error?

  A. Assets liabilities and owners' equity would be understated
  B. Assets net income and owners' equity would be unaffected
  C. Assets and liabilities would be understated
  D. Assets net income and owners' equity would be understated, but liabilities would be overstated
  C. Assets and liabilities would be understated