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

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

• Question 71:

  Which of the following principles is shared by both hierarchical and open organizational structures?

  1) A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions 2) A supervisor's span of control should not exceed seven subordinates 3) Responsibility should be accompanied by adequate authority 4) Employees at all levels should be empowered to make decisions.

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

• Question 72:

  Which of the following is an example of a nonfinancial internal failure quality cost?

  A. Decreasing gross profit margins over time.
  B. Foregone contribution margin on lost sales.
  C. Defective units shipped to customers.
  D. Excessive time to convert raw materials into finished goods.
  D. Excessive time to convert raw materials into finished goods.

• Question 73:

  Capacity overbuilding is most likely to occur when management is focused on which of the following?

  A. Marketing.
  B. Finance.
  C. Production.
  D. Diversification.
  C. Production.

• Question 74:

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

• Question 75:

  When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:

  A. Draws positive attention to the writing style.
  B. Treats all receivers with respect.
  C. Suits the method of presentation and delivery.
  D. Develops ideas without overstatement.
  A. Draws positive attention to the writing style.

• Question 76:

  Which of the following would not impair the objectivity of internal auditor?

  A. Management assurance on risks.
  B. Implementing risk responses on behalf of management.
  C. Providing assurance that risks assessed are correctly evaluated.
  D. Setting the risk appetite.
  C. Providing assurance that risks assessed are correctly evaluated.

• Question 77:

  Which of the following recognized competitive strategies focuses on gaining efficiencies?

  A. Focus
  B. Cost leadership
  C. Innovation
  D. Differentiation
  B. Cost leadership

• Question 78:

  Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?

  A. Non-disclosure agreements between the firm and its employees
  B. Logs of user activity within the information system
  C. Two-factor authentication for access into the information system
  D. Limited access to information based on employee duties
  D. Limited access to information based on employee duties

• Question 79:

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

• Question 80:

  A large hospital has an existing contract with a vendor in another country to provide software support and maintenance of the hospital's patient records information system. From the hospital management's perspective, which of the following controls would be most effective to address privacy risks related to this outsourcing arrangement?

  A. Conduct periodic reviews of the privacy policy to ensure that the existing policy meets current legislation requirements in both regions.
  B. Include a "right to audit" clause in the contract and impose detailed security obligations on the outsourced vendor
  C. Implement mandatory privacy training for management to help with identifying privacy risks when outsourcing services
  D. Develop an incident monitoring and response plan to track breaches from internal and external sources
  B. Include a "right to audit" clause in the contract and impose detailed security obligations on the outsourced vendor