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

• Question 211:

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

  A. Draws positive attention to the writing style.

  B. Treats all receivers with respect.

  C. Suits the method of presentation and delivery.

  D. Develops ideas without overstatement.

  Correct Answer: A

• Question 212:

  Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

  A. Borrowers may not sign all required mortgage loan documentation.

  B. Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.

  C. The bank's loan documentation may not meet the government's disclosure requirements.

  D. Loan officers may override the lending criteria established by senior management.

  Correct Answer: D

• Question 213:

  Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?

  A. Intranet.

  B. Extranet.

  C. Digital subscriber line.

  D. Broadband.

  Correct Answer: B

• Question 214:

  Refer to the exhibit. [Missing the exhibit]

  If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?

  A. The "Funds Needed" line will remain pointed upward, but will become less steep.

  B. The "Funds Needed" line will remain pointed upward, but will become more steep.

  C. The "Funds Needed" line will point downward with a minimal slope.

  D. The "Funds Needed" line will point downward with an extreme slope.

  Correct Answer: B

• Question 215:

  Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

  A. Increasing complexity over time.

  B. Interface with corporate systems.

  C. Ability to meet user needs.

  D. Hidden data columns or worksheets.

  Correct Answer: C

• Question 216:

  Where complex problems need to be addressed, which of the following communication networks would be most appropriate?

  A. Chain.

  B. All-channel.

  C. Circle.

  D. Wheel.

  Correct Answer: B

• Question 217:

  Which of the following are typical responsibilities for operational management within a risk management program?

  1) Implementing corrective actions to address process deficiencies. 2) Identifying shifts in the organization's risk management environment. 3)( Providing guidance and training on risk management processes. 4) Assessing the impact of mitigation strategies and activities.

  A. 1 and 2 only

  B. 1 and 4 only

  C. 2 and 3 only

  D. 3 and 4 only

  Correct Answer: B

• Question 218:

  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?

  A. Deploy the policy in the corporate headquarters' language, so everyone gets an unfiltered version simultaneously.

  B. Introduce the policy region by region, using any lessons learned to change the subsequent version of the policy for the next area.

  C. Consult with legal and operational management in each affected country to ensure the final version can be implemented globally, following audit committee approval.

  D. Send the board-approved version of the policy to each country's senior leadership and empower them to tailor the policy to the local language and culture.

  Correct Answer: C

• Question 219:

  Which of the following are likely indicators of ineffective change management?

  1) IT management is unable to predict how a change will impact interdependent systems or business

  processes.

  2) There have been significant increases in trouble calls or in support hours logged by programmers.

  3) There is a lack of turnover in the systems support and business analyst development groups.

  4) Emergency changes that bypass the normal control process frequently are deemed necessary.

  A. 1 and 3 only

  B. 2 and 4 only

  C. 1, 2, and 4 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 220:

  The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

  A. Use an aging schedule to more closely estimate uncollectible accounts.

  B. Eliminate the need for an allowance for doubtful accounts.

  C. Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.

  D. Use a method that approximates the matching principle.

  Correct Answer: D