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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 131:

  An internal auditor identified a database administrator with an incompatible dual role. Which of the following duties should not be performed by the identified administrator?

  A. Designing and maintaining the database.
  B. Preparing input data and maintaining the database.
  C. Maintaining the database and providing its security.
  D. Designing the database and providing its security.
  B. Preparing input data and maintaining the database.

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  Explanation

• Question 132:

  Cultures have been described as low-context or high-context. Which culture is high- context?

  A. Germany.
  B. Saudi Arabia.
  C. Great Britain.
  D. Swillerland.
  B. Saudi Arabia.

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  Explanation

  Hall drew a distinction between high-context and low-context cultures. In high-context cultures (e.g., Japanese, Chinese, Arabic, and Korean), much meaning is transmitted by nonverbal cues and situational circumstances. Thus, a person's status in a firm, rank in society, and reputation convey the primary message. In low- context cultures (e.g., Northern Europe and North America), primary messages are transmitted verbally. Hence, precise written contractual agreements are highly valued. In contrast, social events are more highly valued in a highcontext culture.

• Question 133:

  What impact is there to liabilities on the balance sheet when ending inventory is overstated?

  A. There is no effect on liabilities.
  B. Liabilities are overstated.
  C. Liabilities are understated.
  D. Inventory errors affect income statement only.
  A. There is no effect on liabilities.

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  Explanation

• Question 134:

  According to Porter's model of competitive strategy, which of the following is a generic strategy?

  1. Differentiation.

  2. Competitive advantage.

  3. Focuseddifferentiation.

  4. Cost focus.

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

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  Explanation

• Question 135:

  A production manager is working on a plan to increase employee motivation at a local plant by comparing results of employee interviews to those from employees at a higher performing plant. The manager is puzzled about the results of two sets of employee interviews. The employees interviewed performed identical jobs. Local employees thought their jobs were boring and unfulfilling while the other plant's employees were very satisfied. Even new employees at the local plant indicated they quickly lost enthusiasm. Identify the primary element the manager must overcome to enhance performance.

  A. Negative job perception.
  B. Inadequate job autonomy.
  C. Lack of skill variety.
  D. Low task significance.
  A. Negative job perception.

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  Explanation

  The tasks and environment for both sets of employees are the same. Thus, the individuals' perceptions are the key to the problem.

• Question 136:

  Which of the following IT professionals is responsible for providing maintenance to switches and routers to keep IT systems running as intended?

  A. Data center operations manager.
  B. Response and support team.
  C. Database administrator.
  D. Network administrator.
  D. Network administrator.

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  Explanation

• Question 137:

  An internal auditor is reviewing key phases of a software development project. Which of the following would; the auditor most likely use to measure the project team's performance related to how project tasks are completed?

  A. A balanced scorecard.
  B. A quality audit
  C. Earned value analysis.
  D. Trend analysis
  C. Earned value analysis.

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  Explanation

  Earned Value Analysis (EVA) is a project management technique that integrates scope, time, and cost data to measure project performance and progress objectively. EVA allows internal auditors to assess whether a software development

  project is on track by comparing planned work with completed work and actual costs.

  Here's why EVA is the most appropriate choice:

  Evaluates Project Progress and Performance - EVA measures how much work has been completed against the planned schedule and budget, helping auditors analyze project efficiency. Identifies Deviations - It highlights cost overruns or

  delays in task completion, which is critical for software development projects.

  Uses Key Metrics - EVA includes essential indicators like:

  Planned Value (PV) - The budgeted cost of work scheduled.

  Earned Value (EV) - The value of actual work performed.

  Actual Cost (AC) - The real cost incurred for work completed.

  Schedule Variance (SV) and Cost Variance (CV) - Indicators of deviations from planned performance.

  Supports Risk-Based Internal Audit Approach - The IIA emphasizes risk-based auditing, and EVA helps auditors assess risks related to project cost overruns, schedule slippage, and performance gaps. Option A: A Balanced Scorecard - This

  measures overall organizational performance across perspectives (financial, customer, internal processes, and learning and growth), but it is not specifically designed for evaluating project task completion. Option B: A Quality Audit - This

  focuses on compliance with quality standards and does not measure project task completion efficiency. Option D: Trend Analysis - This evaluates patterns over time but does not provide a structured measurement of project progress in terms

  of cost, time, and completion percentage. The IIA's GTAG (Global Technology Audit Guide) on IT Project Management - Recommends using earned value analysis for project auditing.

  IIA's International Professional Practices Framework (IPPF) - Performance Standard 2120

  (Risk Management) - Emphasizes the need for internal auditors to evaluate the effectiveness of project risk management, which EVA supports. COSO's Enterprise Risk Management (ERM) Framework - Encourages structured performance

  measurement techniques like EVA to monitor projects.

  Thus, Earned Value Analysis (EVA) is the correct answer because it provides a precise, quantitative way to measure project performance.

• Question 138:

  Which of the following types of budgets will best provide the basis for evaluating the organization's performance?

  A. Cash budget.
  B. Budgeted balance sheet.
  C. Selling and administrative expense budget.
  D. Budgeted income statement.
  B. Budgeted balance sheet.

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  Explanation

• Question 139:

  What security feature would identify a legitimate employee using her own smart device to gain access to an application run by the organization?

  A. Using a jailbroken or rooted smart device feature.
  B. Using only smart devices previously approved by the organization.
  C. Obtaining written assurance from the employee that security policies and procedures are followed.
  D. Introducing a security question known only by the employee.
  B. Using only smart devices previously approved by the organization.

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  Explanation

• Question 140:

  The main reason to establish internal controls in an organization is to:

  A. Encourage compliance with policies and procedures.
  B. Safeguard the resources of the organization.
  C. Ensure the accuracy, reliability, and timeliness of information.
  D. Provide reasonable assurance on the achievement of objectives.
  D. Provide reasonable assurance on the achievement of objectives.

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  Explanation