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

• Question 241:

  Which of the following statements regarding organizational governance is not correct?

  A. An effective internal audit function is one of the four cornerstones of good governance.

  B. Those performing governance activities are accountable to the customer.

  C. Accountability is one of the key elements of organizational governance.

  D. Governance principles and the need for an internal audit function are applicable to governmental and not-for-profit activities.

  Correct Answer: B

• Question 242:

  Which of the following is an element of effective negotiating?

  A. Ensuring that the other party has a personal stake in the agreement.

  B. Focusing on interests rather than on obtaining a winning position.

  C. Considering a few select choices during the settlement phase.

  D. Basing the agreement on negotiating power and positioning leverage.

  Correct Answer: B

• Question 243:

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

  A. A higher initial investment level.

  B. A higher discount rate.

  C. Cash inflows that are larger in the later years of the life of the project.

  D. Cash inflows that are larger in the earlier years of the life of the project.

  Correct Answer: D

• Question 244:

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

  A. The framework categorizes an organization's objectives to distinct, non overlapping objectives.

  B. Control environment is one of the framework's eight components.

  C. The framework facilitates effective risk management, even if objectives have not been established.

  D. The framework integrates with, but is not dependent upon, the corresponding internal control framework.

  Correct Answer: D

• Question 245:

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

  A. Promote closer linkage between organizational strategy and information.

  B. Provide users with greater online access to information systems.

  C. Enhance the functionality of application systems.

  D. Expand the use of automated controls.

  Correct Answer: C

• Question 246:

  According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities

  may be performed by the internal audit activity?

  1) Consult on CSR program design and implementation.

  2) Serve as an advisor on CSR governance and risk management.

  3) Review third parties for contractual compliance with CSR terms.

  4) Identify and mitigate risks to help meet the CSR program objectives.

  A. 1, 2, and 3

  B. 1, 2, and 4

  C. 1, 3, and 4

  D. 2, 3, and 4

  Correct Answer: A

• Question 247:

  When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

  A. Each nation's total imports approximately equal its total exports.

  B. Each good is produced by the nation that has the lowest opportunity cost for that good.

  C. Goods that contribute to a nation's balance-of-payments deficit are no longer imported.

  D. International trade is unrestricted and tariffs are not imposed.

  Correct Answer: B

• Question 248:

  When auditing an application change control process, which of the following procedures should be

  included in the scope of the audit?

  1) Ensure system change requests are formally initiated, documented, and approved.

  2) Ensure processes are in place to prevent emergency changes from taking place.

  3) Ensure changes are adequately tested before being placed into the production environment.

  4) Evaluate whether the procedures for program change management are adequate.

  A. 1 only

  B. 1 and 3 only

  C. 2 and 4 only

  D. 1, 3, and 4 only

  Correct Answer: D

• Question 249:

  The most important reason to use risk assessment in audit planning is to:

  A. Identify redundant controls.

  B. Improve budgeting accuracy.

  C. Enhance assurance provided to management.

  D. Assist in developing audit programs.

  Correct Answer: C

• Question 250:

  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.

  Correct Answer: C