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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1161:

  According to research on the international contingency model of leadership, which path- goal leadership style is most likely to be accepted around the world as culturally appropriate?

  A. Directive.
  B. Participative.
  C. Supportive.
  D. Achievement-oriented.
  B. Participative.

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  Explanation

  A participative style entails consultation with employees and serious attention to their ideas. The participative style, although not always the best, is the most widely accepted internationally. Every country surveyed found it to be culturally acceptable.

• Question 1162:

  A company that uses the accrual basis of accounting can recognize revenue under which of the following conditions?

  A. When cash is received as payment for a service.
  B. When the receivable is recognized.
  C. When a check is received as payment for a good that has been ordered.
  D. When a good is provided or a service is performed.
  D. When a good is provided or a service is performed.

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  Explanation

• Question 1163:

  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.
  D. 50 percent of total organizational cost has been allocated on a volume basis.

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  Explanation

• Question 1164:

  Refer to the exhibit.

  

  A company's financial balance sheet is presented below: The company has net working capital of:

  A. $160
  B. $210
  C. $350
  D. $490
  B. $210

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  Explanation

• Question 1165:

  All of the following statements about communication are false except:

  A. Managers spend more of the workday involved in written communication than oral communication.
  B. Written communication encourages feedback.
  C. Breakthroughs in electronic technology will blur the distinctions between written and oral communications.
  D. The grapevine rarely provides accurate information.
  C. Breakthroughs in electronic technology will blur the distinctions between written and oral communications.

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  Explanation

  Breakthroughs in electronic technology may lead to oral messages being recorded and subsequently written out. The supervisor of purchasing reviewed a memorandum prepared for a buyer in the department. The memo read, "Effective September 30, the corporation has determined that your functions will be absorbed into our parent company's small-unit purchasing function. This will reduce operating costs, improve communications, and facilitate production engineering changes. You will be provided with outplacement support." That should cover the situation," thought the supervisor. Its too bad that I am leaving on vacation before the buyer returns from vacation, but this memo will give the buyer the general idea."

• Question 1166:

  An organization is considering outsourcing its IT services, and the internal auditor is assessing the related risks. The auditor grouped the related risks into three categories:

  -

  Risks specific to the organization itself.

  -

  Risks specific to the service provider.

  - Risks shared by both the organization and the service provider.

  Which of the following risks should the auditor classify as specific to the service provider?

  A. Unexpected increases in outsourcing costs.
  B. Loss of data privacy.
  C. Inadequate staffing.
  D. Violation of contractual terms.
  B. Loss of data privacy.

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  Explanation

• Question 1167:

  A large retail customer made an offer to buy 10,000 units at a special price of $7 per unit. The manufacturer usually sells each unit for $10. Variable manufacturing costs are $5 per unit and fixed manufacturing costs are $3 per unit. For the manufacturer to accept the offer, which of the following assumptions needs to be true?

  A. Fixed and variable manufacturing costs are less than the special offer selling price.
  B. The manufacturer can fulfill the order without expanding the capacities of the production facilities.
  C. Costs related to accepting this offer can be absorbed through the sale of other products.
  D. The manufacturer's production facilities are currently operating at full capacity.
  C. Costs related to accepting this offer can be absorbed through the sale of other products.

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  Explanation

• Question 1168:

  Which of the following is an example of a physical control?

  A. Providing fire detection and suppression equipment.
  B. Establishing a physical security policy and promoting it throughout the organization.
  C. Performing business continuity and disaster recovery planning.
  D. Keeping an offsite backup of the organization's critical data.
  A. Providing fire detection and suppression equipment.

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  Explanation

• Question 1169:

  Which of the following methods has the lowest risk of inaccurate authentication?

  A. Fingerprint identification
  B. Complex passwords
  C. Signature verification
  D. Personal security questions
  A. Fingerprint identification

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  Explanation

• Question 1170:

  The audit committee has asked the internal audit activity to integrate data analytics into all work programs going forward. To accomplish this, which of the following describes the first step an audit team should take when planning for an audit?

  A. Ensure that there are sufficient audit resources or train personnel in data analytics.
  B. Obtain and assess as much data as possible for the audit.
  C. Identify the business question or need, data required, and expected results.
  D. Gain management's approval and willingness to accept audit findings based on data analytics.
  C. Identify the business question or need, data required, and expected results.

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  Explanation