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

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

• Question 261:

  The first step in determining product price is:

  A. Determining the cost of the product.
  B. Developing pricing objectives.
  C. Evaluating prices set by the competitors.
  D. Selecting a pricing method.
  B. Developing pricing objectives.

• Question 262:

  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?

  A. Cost of raw material inventory items is decreasing.
  B. Process to manufacture goods is more efficient.
  C. Labor productivity to produce goods is increasing.
  D. Write-off of inventory is increasing.
  D. Write-off of inventory is increasing.

• Question 263:

  According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?

  1) Organizational governance. 2) Organizational operations. 3) Organizational information systems. 4) Organizational structure.

  A. 1 and 3 only
  B. 2 and 4 only
  C. 1, 2, and 3 only
  D. 1, 2, and 4 only
  C. 1, 2, and 3 only

• Question 264:

  In order to provide useful information for an organization's risk management decisions, which of the following factors is least important to assess?

  A. The underlying causes of the risk.
  B. The impact of the risk on the organization's objectives.
  C. The risk levels of current and future events.
  D. The potential for eliminating risk factors.
  D. The potential for eliminating risk factors.

• Question 265:

  Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?

  A. PKI uses an independent administrator to manage the public key.
  B. The public key is authenticated against reliable third-party identification.
  C. PKI's public accessibility allows it to be used readily for e-commerce.
  D. The private key uniquely authenticates each party to a transaction.
  D. The private key uniquely authenticates each party to a transaction.

• Question 266:

  Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of $3 per unit The market price of the product is $15 plus 20% selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for $18 Which of the following methods of transfer pricing is being used?

  A. Market price.
  B. Negotiation-based.
  C. Full absorption cost
  D. Variable cost
  A. Market price.

• Question 267:

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

  A. Full or near capacity in processes.
  B. Smooth workflow among processes.
  C. Few or no defects.
  D. Lowered inventory levels.
  A. Full or near capacity in processes.

• Question 268:

  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.

  A. 1 only
  B. 2 and 4 only
  C. 1, 3, and 4 only
  D. 1, 2, 3, and 4
  A. 1 only

• Question 269:

  Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

  A. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
  B. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
  C. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
  D. 50 percent of total organizational cost has been allocated on a volume basis.
  D. 50 percent of total organizational cost has been allocated on a volume basis.

• Question 270:

  Which of the following data security policies is most likely to be the result of a data privacy law?

  A. Access to personally identifiable information is limited to those who need it to perform their job.
  B. Confidential data must be backed up and recoverable within a 24-hour period.
  C. Updates to systems containing sensitive data must be approved before being moved to production.
  D. A record of employees with access to insider information must be maintained and those employees may not trade company stock during blackout periods
  A. Access to personally identifiable information is limited to those who need it to perform their job.