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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1361:

  Which of the following best explains the matching principle?

  A. Revenues should be recognized when earned
  B. Revenue recognition is matched with cash
  C. Expense recognition is tied to revenue recognition
  D. Expenses are recognized at each accounting period
  C. Expense recognition is tied to revenue recognition

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  Explanation

• Question 1362:

  Which of the following biometric access controls uses the most unique human recognition characteristic?

  A. Facial comparison using photo identification
  B. Signature comparison
  C. Voice comparison
  D. Retinal print comparison
  D. Retinal print comparison

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  Explanation

• Question 1363:

  Which of the following best demonstrates an organization's ability to recover from a disaster?

  A. Hot site
  B. Cold site
  C. Redundant data center
  D. Regular testing of the disaster plan
  A. Hot site

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  Explanation

• Question 1364:

  Which of the following are the most common characteristics of big data?

  A. Visibility, validity, vulnerability
  B. Velocity, variety, volume
  C. Complexity, completeness, constancy
  D. Continuity, control, convenience
  B. Velocity, variety, volume

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  Explanation

• Question 1365:

  Which of the following techniques would best detect an inventory fraud scheme?

  A. Analyze invoice payments just under individual authorization limits
  B. Analyze stratification of inventory adjustments by warehouse location
  C. Analyze inventory invoice amounts and compare with approved contract amounts
  D. Analyze differences discovered during duplicate payment testing
  D. Analyze differences discovered during duplicate payment testing

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  Explanation

• Question 1366:

  Which of the following would be most likely found in an internal audit procedures manual?

  A. A summary of the strategic plan of the area under review
  B. Appropriate response options for when findings are disputed by management
  C. An explanation of the resources needed for each engagement
  D. The extent of the auditor's authority to collect data from management
  B. Appropriate response options for when findings are disputed by management

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  Explanation

  The internal audit procedures manual documents policies and procedures for conducting audit engagements, including steps to follow when issues arise, such as disputes with management regarding findings. It ensures consistency and

  standardization of audit practice.

  Option A (strategic plan) and Option C (resources) are not part of audit procedures but rather part of planning or organizational documents. Option D (authority to collect data) belongs in the internal audit charter, not in the procedures manual.

  Therefore, the correct answer is appropriate response options for disputes with management (Option B).

  IIA Practice Guide - Developing the Internal Audit Manual.

• Question 1367:

  US firm most likely may decide to enter the Australian market because of:

  A. Geography.
  B. The unmet needs of an undeveloped country.
  C. Psychic proximity.
  D. Population.
  C. Psychic proximity.

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  Explanation

  Attractiveness of a foreign market is a function of such factors as geography, income, climate, population, and the product. Another major factor is the unmet needs of a developing nation, for example, China or India. Entry into a market abroad may be based on many factors, for example, psychic proximity. Thus, a first-time venture abroad might be in a market with a related culture, language, or laws.

• Question 1368:

  In an organization's established accounts payable department employees perform highly structured activities follow clearly defined procedures and have strict deadlines for performing their tasks

  The head of the department recently retired, and a new department head was hired To achieve the greatest benefit for this department and avoid redundancy the new leader should adopt which of the following leadership styles?

  A. Achievement-oriented style
  B. People-oriented style
  C. Goal-oriented style
  D. Task-oriented style
  C. Goal-oriented style

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  Explanation

• Question 1369:

  The sharing of important financial information with employees based upon a foundation of trust and commitment to training is known as

  A. Self-managed teams.
  B. Open-book management.
  C. Quality circles.
  D. Impression management.
  B. Open-book management.

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  Explanation

  Open-book management involves sharing important financial information with trained and empowered employees. This approach is founded on trusting employees, commitment to their training, and waiting patiently for results.

• Question 1370:

  Which of the following accurately describes the proper order of steps for an internal auditor to use when analyzing data?

  A. Obtain the data, clean and normalize the data, define the question analyze the data
  B. Define the question, obtain the data, analyze the data, clean and normalize the data
  C. Define the question, obtain the data, clean and normalize the data, analyze the data
  D. Obtain the data, analyze the data, clean and normalize the data, define the question
  C. Define the question, obtain the data, clean and normalize the data, analyze the data

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  Explanation