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

• Question 391:

  Which of the following is a characteristic of an emerging industry?

  A. Established strategy of players.

  B. Low number of new firms.

  C. High unit costs.

  D. Technical expertise.

  Correct Answer: C

• Question 392:

  Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:

  A. Motivation.

  B. Performance.

  C. Organizational structure.

  D. Communication.

  Correct Answer: D

• Question 393:

  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.

  Correct Answer: D

• Question 394:

  During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

  A. $170,000

  B. $280,000

  C. $300,000

  D. $540,000

  Correct Answer: A

• Question 395:

  Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

  A. The cost of goods sold for the period will be understated.

  B. The cost of goods sold for the period will be overstated.

  C. The net income for the period will be understated.

  D. There will be no effect on the cost of goods sold or the net income for the period.

  Correct Answer: B

• Question 396:

  Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?

  A. Lack of flexibility.

  B. Incompatibility with client/server technology.

  C. Employee resistance to change.

  D. Inadequate technical support.

  Correct Answer: A

• Question 397:

  Which of the following are typical audit considerations for a review of authentication?

  1) Authentication policies and evaluation of controls transactions.

  2) Management of passwords, independent reconciliation, and audit trail.

  3) Control self-assessment tools used by management.

  4) Independent verification of data integrity and accuracy.

  A. 1, 2, and 3

  B. 1, 2, and 4

  C. 1, 3, and 4

  D. 2, 3, and 4

  Correct Answer: A

• Question 398:

  Which of the following statements is correct regarding corporate compensation systems and related

  bonuses?

  1) A bonus system should be considered part of the control environment of an organization and should be

  considered in formulating a report on internal control.

  2) Compensation systems are not part of an organization's control system and should not be reported as

  such.

  3) An audit of an organization's compensation system should be performed independently of an audit of

  the control system over other functions that impact corporate bonuses.

  A. 1 only

  B. 2 only

  C. 3 only

  D. 2 and 3 only

  Correct Answer: A

• Question 399:

  Which of the following describes the free trade zone in an e-commerce environment?

  A. Zone that separates an organization's servers from outside forces.

  B. Area in which messages are scrutinized to determine if they are authorized.

  C. Area where communication and transactions occur between trusted parties.

  D. Zone where data is encrypted, users are authenticated, and user traffic is filtered.

  Correct Answer: C

• Question 400:

  According to the International Professional Practices Framework, which of the following statements is true

  regarding a corporate social responsibility (CSR) program?

  1) Every employee generally has a responsibility for ensuring the success of CSR objectives.

  2) The board has overall responsibility for the effectiveness of internal control processes associated with

  CSR.

  3) Public reporting on the CSR governance process is expected.

  4) Organizations generally have flexibility regarding what is included in a CSR program.

  A. 1, 2, and 3 only

  B. 1, 2, and 4 only

  C. 1, 3, and 4 only

  D. 2, 3, and 4 only

  Correct Answer: B