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

• Question 281:

  Which of the following descriptions of the internal control system are indicators that risks are managed effectively?

  1) Existing controls promote compliance with applicable laws and regulations. 2) The control environment is designed to address all identified risks to the organization. 3) Key controls for significant risks to the organization remain consistent over time. 4) Monitoring systems are in place to alert management to unexpected events.

  A. 1 and 3.

  B. 1 and 4.

  C. 2 and 3.

  D. 2 and 4.

  Correct Answer: B

• Question 282:

  Which of the following statements is true regarding outsourced business processes?

  A. Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.

  B. Generally, independence is improved when the internal audit activity reviews outsourced business processes.

  C. The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.

  D. The system of internal controls may be better and more efficient when the business process is outsourced compared to internally sourced.

  Correct Answer: D

• Question 283:

  Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

  A. Fragmented industries.

  B. Declining industries.

  C. Mature industries.

  D. Emerging industries.

  Correct Answer: D

• Question 284:

  Which of the following conditions could lead an organization to enter into a new business through internal development rather than through acquisition?

  A. It is expected that there will be slow retaliation from incumbents.

  B. The acquiring organization has information that the selling organization is weak.

  C. The number of bidders to acquire the organization for sale is low.

  D. The condition of the economy is poor.

  Correct Answer: A

• Question 285:

  Which of the following are included in ISO 31000 risk principles and guidelines?

  A. Standards, framework, and process.

  B. Standards, assessments, and process.

  C. Principles, framework, and process.

  D. Principles, practices, and process.

  Correct Answer: C

• Question 286:

  Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

  A. Political.

  B. Financial.

  C. Social.

  D. Tariff.

  Correct Answer: A

• Question 287:

  Which of the following strategies would most likely prevent an organization from adjusting to evolving industry market conditions?

  A. Specializing in proven manufacturing techniques that have made the organization profitable in the past.

  B. Substituting its own production technology with advanced techniques used by its competitors.

  C. Forgoing profits over a period of time to gain market share from its competitors.

  D. Using the same branding to sell its products through new sales channels to target new markets.

  Correct Answer: A

• Question 288:

  An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:

  A. Better internal controls.

  B. Greater economies of scale.

  C. Improved work flow.

  D. Increased specialization.

  Correct Answer: C

• Question 289:

  Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

  A. Both the key used to encrypt the data and the key used to decrypt the data are made public.

  B. The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

  C. The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

  D. Both the key used to encrypt the data and the key used to decrypt the data are made private.

  Correct Answer: C

• Question 290:

  Within an enterprise, IT governance relates to the:

  1) Alignment between the enterprise's IT long term plan and the organization's objectives.

  2) Organizational structures of the company that are designed to ensure that IT supports the organization's

  strategies and objectives.

  3) Operational plans established to support the IT strategies and objectives.

  4) Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.

  A. 1 and 2 only

  B. 3 and 4 only

  C. 1, 2, and 4 only

  D. 2, 3, and 4 only

  Correct Answer: C