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

• Question 261:

  Which of the following local area network physical layouts is subject to the greatest risk of failure if one device fails?

  A. Star network.

  B. Bus network.

  C. Token ring network.

  D. Mesh network.

  Correct Answer: C

• Question 262:

  In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?

  A. Identifying the processes at the activity level.

  B. Analyzing the organization's strategic plan where the business processes are defined.

  C. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.

  D. Identifying the risks affecting the organization, the objectives, and then the processes concerned.

  Correct Answer: C

• Question 263:

  When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

  A. Identifying risks to the organization's operations.

  B. Observing and analyzing controls.

  C. Prioritizing known risks.

  D. Reviewing organizational objectives.

  Correct Answer: D

• Question 264:

  During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?

  A. Scope and initiation phase.

  B. Business impact analysis.

  C. Plan development.

  D. Testing.

  Correct Answer: B

• Question 265:

  Which of the following roles would be least appropriate for the internal audit activity to undertake with regard to an organization's corporate social responsibility (CSR) program?

  A. Consult on project design and implementation of the CSR program.

  B. Serve as an advisor on internal controls related to CSR.

  C. Identify and prioritize the CSR issues that are important to the organization.

  D. Evaluate the effectiveness of the organization's CSR efforts.

  Correct Answer: C

• Question 266:

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

  A. Control environment.

  B. Control activities.

  C. Information and communication.

  D. Monitoring.

  Correct Answer: A

• Question 267:

  According to the COSO enterprise risk management (ERM) framework, which of the following is not a typical responsibility of the chief risk officer?

  A. Establishing risk category definitions and a common risk language for likelihood and impact measures.

  B. Defining ERM roles and responsibilities.

  C. Providing the board with an independent, objective risk perspective on financial reporting.

  D. Guiding integration of ERM with other management activities.

  Correct Answer: C

• Question 268:

  Which of the following statements is true regarding the relationship between an individual's average tax rate and marginal tax rate?

  A. In a regressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.

  B. In a regressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.

  C. In a progressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.

  D. In a progressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.

  Correct Answer: D

• Question 269:

  Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?

  A. A multinational company has stockholders in other countries.

  B. A multinational company exports its products to other countries.

  C. A multinational company operates outside of its country of origin.

  D. A multinational company uses raw materials and components from more than one country.

  Correct Answer: C

• Question 270:

  All of the following are possible explanations for a significant unfavorable material efficiency variance except:

  A. Cutbacks in preventive maintenance.

  B. An inadequately trained and supervised labor force.

  C. A large number of rush orders.

  D. Production of more units than planned for in the master budget.

  Correct Answer: D