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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 141:

  Which industry factor does not contribute to competitive rivalry?

  A. Price-cutting, large advertising budgets, and frequent introduction of new products.
  B. A firm's growth must come from winning other firms' customers.
  C. High costs of customers switching suppliers.
  D. High fixed costs relative to variable costs.
  C. High costs of customers switching suppliers.

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  Explanation

  If it is expensive to switch suppliers, customers will be less motivated to respond to competitor advances.

• Question 142:

  Which of the following is not included in the process of user authentication?

  A. Authorization.
  B. Identification.
  C. Verification.
  D. Validation.
  A. Authorization.

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  Explanation

• Question 143:

  In an internal audit department, group decision making would be most appropriate for determining whether to:

  A. Report a significant audit finding that is critical of management.
  B. Expand an audit program because of uncertainty and risk regarding the operations of the audited entity.
  C. Expand audit procedures when initial sample results indicate a strong possibility of fraud.
  D. Review a critical audit finding with the client before preparation of the engagement final communication.
  B. Expand an audit program because of uncertainty and risk regarding the operations of the audited entity.

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  Explanation

  Whether to expand an audit program because of uncertainty and risk regarding the operations of the audited entity is a matter of professional judgment. In discretionary matters of this kind, the advantages of group decision making become evident. The group has a greater base of knowledge than an individual and provides multiple perspectives. Furthermore, the extended discussions among group members clarify the issues and aid in understanding the reasons fordifferent actions. Also, the participants are likely to accept, or take ownership of, the final decision. In addition, the process provides training for the group's less experienced members.

• Question 144:

  Which of the following actions would senior management need to consider as pan of new IT guidelines regarding the organization's cybersecurity policies?

  A. Assigning new roles and responsibilities for senior IT management.
  B. Growing use of bring your own devices tor organizational matters
  C. Expansion of operations into new markets with united IT access
  D. Hiring new personnel within the IT department tor security purposes
  D. Hiring new personnel within the IT department tor security purposes

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  Explanation

• Question 145:

  When would a contract be closed out?

  A. When there's a dispute between the contracting parties.
  B. When all contractual obligations have been discharged.
  C. When there is a force majeure.
  D. When the termination clause is enacted.
  B. When all contractual obligations have been discharged.

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  Explanation

• Question 146:

  A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs. This is an example of which of the following?

  A. Job enlargement.
  B. Job enlargement.
  C. Horizontal loading of the job.
  D. Job rotation
  A. Job enlargement.

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  Explanation

• Question 147:

  Which of the following statements regarding organizational governance is not correct?

  A. An effective internal audit function is one of the four cornerstones of good governance.
  B. Those performing governance activities are accountable to the customer.
  C. Accountability is one of the key elements of organizational governance.
  D. Governance principles and the need for an internal audit function are applicable to governmental and not-for-profit activities.
  B. Those performing governance activities are accountable to the customer.

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  Explanation

• Question 148:

  An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?

  A. Interviewing the organization's employees.
  B. Observing the organization's operations.
  C. Reading the board's minutes.
  D. Inspecting manuals and documents.
  C. Reading the board's minutes.

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  Explanation

• Question 149:

  Which of the following characteristics is common with a mature group?

  A. Harmony is emphasized at the expense of addressing the problems.
  B. No attempt to force unanimity.
  C. Members begin to identify with the group.
  D. Redistributions of power and authority may occur.
  B. No attempt to force unanimity.

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  Explanation

  A mature group is in the end stage of group development and tends to be more effective and productive compared to groups in earlier stages. A mature group engages in rational discussion of decisions with tolerance of dissent and no attempt to force unanimity.

• Question 150:

  A large company uses assembly line techniques to manufacture a single product. Its choice of relatively mechanistic organizational design was more likely based on its:

  A. Need for rapid response to environmental change.
  B. Primary concern for operational efficiency.
  C. Low fixed technology requirements.
  D. Project management emphasis.
  B. Primary concern for operational efficiency.

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  Explanation

  Mechanistic organizations have vertical structures with duties and authority clearly defined by position in the hierarchy, a stringent set of formal controls, and a centralized staff. Such organizations tend to emphasize efficiency and operate in a stable environment withwell- establishedtechnology. Large firms in basic industries autos, utilities) often adopt this structure.