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

• Question 361:

  Multinational organizations generally spend more time and effort to identify and evaluate:

  A. Internal strengths and weaknesses.

  B. Break-even points.

  C. External trends and events.

  D. Internal risk factors.

  Correct Answer: C

• Question 362:

  Refer to the exhibit.

  [Missing the exhibit]

  The figure below shows the network diagram for the activities of a large project. What is the shortest

  number of days in which the project can be completed?

  A. 21 days.

  B. 22 days.

  C. 27 days.

  D. 51 days.

  Correct Answer: C

• Question 363:

  A company's financial balance sheet is presented below:

  [Missing the exhibit]

  The company has net working capital of:

  A. $160

  B. $210

  C. $350

  D. $490

  Correct Answer: B

• Question 364:

  Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:

  Activity Level Maintenance Cost Month Patient Days January 5,600 $7,900 February 7,100 $8,500 March 5,000 $7,400 April 6,500 $8,200 May 7,300 $9,100 June 8,000 $9,800

  If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

  A. Fixed cost.

  B. Variable cost.

  C. Total maintenance cost.

  D. Patient days.

  Correct Answer: D

• Question 365:

  In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?

  A. Giving assurance that risks are evaluated correctly.

  B. Developing the risk management strategy for the board's approval.

  C. Facilitating the identification and evaluation of risks.

  D. Coaching management in responding to risk.

  Correct Answer: A

• Question 366:

  Which of the following statements about COBIT is not true?

  A. COBIT helps management understand and manage the risks associated with information technology (IT) processes.

  B. Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.

  C. COBIT control objectives are specific to various IT platforms and help determine minimum controls.

  D. COBIT provides management with the capability to conduct self-assessments against industry best practices.

  Correct Answer: C

• Question 367:

  Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?

  A. A flexible budget.

  B. Variance analysis.

  C. A contribution margin income statement by segment.

  D. Residual income.

  Correct Answer: D

• Question 368:

  When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?

  1) Management's tolerance for specific risks. 2) The cost versus benefit of implementing a control. 3) Whether a control can mitigate multiple risks. 4) The ability to test the effectiveness of the control.

  A. 1, 2, and 3

  B. 1, 2, and 4

  C. 1, 3, and 4

  D. 2, 3, and 4

  Correct Answer: C

• Question 369:

  A brand manager in a consumer food products organization suspected that several days of the point-ofsale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:

  A. Sort on product identification code and identify missing product identification codes.

  B. Review store identification code and identify missing product identification codes.

  C. Compare product identification codes for consecutive periods.

  D. Compare product identification codes by store for consecutive periods.

  Correct Answer: D

• Question 370:

  Which of the following statements about market signaling is correct?

  1) The organization releases information about a new product generation. 2) The organization limits a challenger's access to the best source of raw materials or labor. 3) The organization announces that it is fighting a new process technology. 4) The organization makes exclusive arrangements with the channels.

  A. 1 and 3 only

  B. 1 and 4 only

  C. 2 and 3 only

  D. 2 and 4 only

  Correct Answer: A