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

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

• Question 81:

  Which of the following factors is considered a disadvantage of vertical integration?

  A. It may reduce the flexibility to change partners.
  B. It may not reduce the bargaining power of suppliers.
  C. It may limit the organization's ability to differentiate the product.
  D. It may lead to limited control of proprietary knowledge.
  A. It may reduce the flexibility to change partners.

• Question 82:

  Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

  A. Penetration test.
  B. Social engineering test.
  C. Vulnerability test.
  D. Physical control test.
  D. Physical control test.

• Question 83:

  An organization is experiencing a high turnover. Which of the following can human resources deploy to effectively detect the root cause of turnover?

  A. Require regular performance appraisals
  B. Perform exit interviews
  C. Encourage periodic rotation of employee duties.
  D. Ensure mandatory vacations
  B. Perform exit interviews

• Question 84:

  Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?

  1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.

  2) The IAA must assess whether the IT governance of the organization supports the organization's strategies and objectives.

  3) The IAA may assess whether the IT governance of the organization supports the organization's strategies and objectives.

  4) The IAA may accept requests from management to perform advisory services regarding objectives.

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

• Question 85:

  Which of me following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?

  A. First-in first-out method (FIFO)
  B. Last-in first-out method (LIFO)
  C. Specific identification method
  D. Average-cost method
  A. First-in first-out method (FIFO)

• Question 86:

  A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?

  A. Diversification
  B. Vertical integration
  C. Risk avoidance
  D. Differentiation
  B. Vertical integration

• Question 87:

  An organization has recorded the following profit and expenses:

  Profit before interest and tax $200,000

  Sales $2,300,000 Purchases of materials $700,000 Interest expenses $30,000 If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

  A. $34,000
  B. $51,000
  C. $60,000
  D. $320,000
  D. $320,000

• Question 88:

  An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?

  A. Develop and test the organization's disaster recovery plan.
  B. Install and test fire detection and suppression equipment.
  C. Restrict access to tangible IT resources.
  D. Ensure that at least one developer has access to both systems and operations.
  D. Ensure that at least one developer has access to both systems and operations.

• Question 89:

  A capital investment project will have a higher net present value, everything else being equal, if it has:

  A. A higher initial investment level.
  B. A higher discount rate.
  C. Cash inflows that are larger in the later years of the life of the project.
  D. Cash inflows that are larger in the earlier years of the life of the project.
  D. Cash inflows that are larger in the earlier years of the life of the project.

• Question 90:

  When initiating international ventures, an organization should consider cultural dimensions in order to prevent misunderstandings. Which of the following does not represent a recognized cultural dimension in a work environment?

  A. Self control.
  B. Power distance.
  C. Masculinity versus femininity.
  D. Uncertainty avoidance.
  A. Self control.