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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 121:

  Among the non-financial rewards to an employee, a paid vacation trip can best be categorized as:

  A. Social reward.
  B. Token award.
  C. Visual/auditory reward.
  D. Manipulatetables.
  B. Token award.

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  Explanation

  Token awards are normally nonrecurring. They show appreciation for the role of the employee. Other similar examples are gift coupons, stock options, early time off with pay, or dinner and theater tickets.

• Question 122:

  According to Herzberg's Two-Factor Theory of Motivation, which of the following factors are mentioned most often by satisfied employees?

  A. Salary and status.
  B. Responsibility and advancement.
  C. Work conditions and security.
  D. Peer relationships and personal life.
  B. Responsibility and advancement.

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  Explanation

• Question 123:

  Strategic choices in an emerging industry are inherently subject to great uncertainty and risk with regard to competitors, industry structure, and competitive rules. Accordingly, a firm considering entry into an emerging industry:

  A. Has little need to be concerned with industry cooperation.
  B. Is least likely to be able to shape the industry structure at this stage.
  C. May enjoy such benefits of pioneering as experience advantages and early commitment to suppliers.
  D. Must be prepared for responding vigorously to competitors' moves.
  C. May enjoy such benefits of pioneering as experience advantages and early commitment to suppliers.

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  Explanation

  Timing of entry is a critical choice. Pioneering firms face high risk but low barriers and may earn high returns. The following are factors favoring early entry:pioneering improves the firm's reputation, the learning curve (experience) advantage is important and will persist, customer loyalty will be high, and cost advantages (through early commitment to suppliers or distributors) can be secured.

• Question 124:

  An employee with a good background and years of experience earns a salary at the top of his or her range. Under the company's compensation program, the employee must earn a promotion in order to increase his or her salary above the usual annual increase. Which of the following is most likely to be an effect on the employee's behavior?

  A. The employee may refuse new duties or tasks.
  B. The employee may become less productive.
  C. The employee may not be motivated to improve performance.
  D. The employee may seek a position with another company.
  D. The employee may seek a position with another company.

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  Explanation

  When an employee can earn a desired salary increase only through a promotion, s)he is likely to be motivated to perform better. If this does not result in a promotion, s)he will probably look for another job.

• Question 125:

  Which of the following is a limiting factor for capacity expansion?

  A. Government pressure on organizations to increase or maintain employment.
  B. Production orientation of management.
  C. Lack of credible market leader in the industry.
  D. Companydiversification.
  D. Companydiversification.

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  Explanation

• Question 126:

  Which of the following can be a limiting factor associated with group decision making?

  A. Groups generally do not analyze problems in enough depth.
  B. It is very difficult to get individuals to accept decisions made by groups.
  C. Groups have a difficult time identifying the important components of decision making.
  D. Accountability is dispersed when groups make decisions.
  D. Accountability is dispersed when groups make decisions.

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  Explanation

  The difficulty associated with group-aided decision making is accountability for the decision. If a decision is made by a group, no one person is responsible. The best method is for the group to recommend a decision but for a manager to assume responsibility for making the final decision.

• Question 127:

  Which of the following statements is true regarding an organization's chief audit executive (CAE) when prioritizing the audit universe?

  A. The CAE uses the risk-factor approach to prioritize the audit universe
  B. The CAE uses risk likelihood scores to prioritize the audit universe
  C. The CAE uses risk impact scores to prioritize the audit universe
  D. The CAE uses heat maps to prioritize the audit universe
  A. The CAE uses the risk-factor approach to prioritize the audit universe

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  Explanation

  When prioritizing the audit universe, the CAE typically uses a risk-factor approach. This includes a combination of likelihood, impact, control effectiveness, and other relevant criteria. Solely relying on impact (Option C) or likelihood (Option B)

  is insufficient. Heat maps (Option D) may be tools used within the process, but they are not the actual method of prioritization.

  Thus, the correct description is the risk-factor approach (Option A).

  IIA Practice Guide - Developing a Risk-based Internal Audit Plan.

• Question 128:

  The most likely generic benefit of vertical integration is:

  A. Lowering entry barriers.
  B. Increasing demand.
  C. Avoiding market transactions.
  D. Lowering mobility barriers.
  C. Avoiding market transactions.

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  Explanation

  Economies of vertical integration result from avoiding some market transactions. Transaction costs of dealing with outside parties are greater than those of dealing with inside parties.

• Question 129:

  Which of the following is an example of a phishing attack?

  A. An organization's website becomes flooded with malicious traffic on the first day of the online shopping season, causing the website to crash and preventing customers from purchasing deals online
  B. The employees of a retail organization responded to emails with a link to malware that enabled a hacker to access the point-of-sale system and obtain customers' credit card information
  C. An organization's employees clicked on a link that allowed a worm to infiltrate and encrypt the organization's operating system, rendering it unusable. A group of hackers is demanding payment to unlock the encryption
  D. A group of online activists hacked into the private email and confidential records of the local police department and released the information online to expose the corrupt practices of the department
  B. The employees of a retail organization responded to emails with a link to malware that enabled a hacker to access the point-of-sale system and obtain customers' credit card information

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  Explanation

  IIA Business Knowledge for Internal Auditing, Cybersecurity and IT Risks section.

• Question 130:

  Based on test results, an IT auditor concluded that the organization would suffer unacceptable loss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

  A. Requested backup tapes were not returned from the offsite vendor in a timely manner.
  B. Returned backup tapes from the offsite vendor contained empty spaces.
  C. Critical systems have been backed up more frequently than required.
  D. Critical system backup tapes are taken off site less frequently than required
  D. Critical system backup tapes are taken off site less frequently than required

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  Explanation