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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 431:

  Which of the following costs would be incurred in an inventory stockout?

  A. Lost sales, lost customers, and backorder.
  B. Lost sales, safety stock, and backorder.
  C. Lost customers, safety stock, and backorder.
  D. Lost sales, lost customers, and safety stock.
  A. Lost sales, lost customers, and backorder.

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  Explanation

• Question 432:

  Data analysis indicates that a hospital pharmacy disbursed higher levels of controlled drugs than similar pharmacies in the area. The hospital's internal auditor discusses the risk with the head of the hospital pharmacy, who believes that the risk is appropriately mitigated by controls and feels comfortable with the number of prescriptions written. What should the auditor do next?

  A. Document that the head of the pharmacy has accepted the risk and believes it is sufficiently mitigated, and conclude the risk assessment
  B. Request that an independent third party re-perform the data analysis to verify the accuracy of the initial findings
  C. nvestigate the risk by requesting pharmacy policies, procedures, and detailed reports
  D. Add an audit of the hospital pharmacy to the annual audit plan to fully investigate the risk later in the year
  C. nvestigate the risk by requesting pharmacy policies, procedures, and detailed reports

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  Explanation

• Question 433:

  Which of the following contract concepts is typically given in exchange for the execution of a promise?

  A. Lawfulness.
  B. Consideration
  C. Agreement
  D. Discharge.
  B. Consideration

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  Explanation

  https://law.jrank.org/pages/5690/Contracts-Elements-Contract.html

• Question 434:

  A strategic business unit (SBU) has a low relative market share (RMS) and a high market growth rate (MGR). According to the portfolio model for competitive analysis (thegrowth sharematrix) created by the Boston Consulting Group, the SBU is considered a

  A. Star.
  B. Question mark.
  C. Cash cow.
  D. Dog.
  B. Question mark.

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  Explanation

  Question marks (low RMS, high MGR) are weak competitors in high-growth markets. They need large amounts of cash not only to finance growth and keep pace with the market but also to increase RMS, but do poorly in cash generation. If RMS increases significantly, a question mark may become a star. If not, it becomes a dog.

• Question 435:

  Paul Hersey and Ken Blanchard developed a situational leadership model with two dimensions:task and relationship behaviors. In this model, a telling leadership style has which dimensions?

  A. High task and high relationship.
  B. High task and low relationship.
  C. Low task and high relationship.
  D. Low task and low relationship.
  B. High task and low relationship.

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  Explanation

  A telling leadership style provides specific instructions to employees and closely supervises performance. Thus, the leader tells followers what tasks to accomplish and how to do them. Task-related behavior is high and relationship-related behavior is low. The telling leadership style is appropriate when followers have low maturity; that is, when they are lacking in both competence and confidence, so that they are unable and unwilling to do what is necessary.

• Question 436:

  A chief audit executive wants to implement an enterprisewide resource planning software.

  Which of the following internal audit assessments could provide overall assurance on the likelihood of the software implementation's success?

  A. Readiness assessment.
  B. Project risk assessment.
  C. Post-implementation review.
  D. Key phase review.
  B. Project risk assessment.

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  Explanation

• Question 437:

  According to IIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?

  A. The business continuity management charter.
  B. The business continuity risk assessment plan.
  C. The business impact analysis plan.
  D. The business case for business continuity planning.
  C. The business impact analysis plan.

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  Explanation

  https://searchitchannel.techtarget.com/feature/Business-impact-analysis-for-business-continuity-Recovery-time-requirements

• Question 438:

  An adhocracy is most likely to be found in what kind of organizational structure?

  A. Mechanistic.
  B. Organic.
  C. Bureaucratic.
  D. Classical.
  B. Organic.

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  Explanation

  The organic structure is at the opposite end of the design continuum from a mechanistic organization. An organic structure has groupings of similar persons and resources in subunits horizontal specialization); relatively few policies, procedures, and rules; less stringent formal controls; decentralized staff; and matrix or divisional departmentation.

• Question 439:

  Which of the following financial instruments should be recorded at fair market value on the financial statements?

  A. Accounts receivable in the short term
  B. Bonds to be held to maturity.
  C. Notes receivable in the short term
  D. Bonds to be held for sale in the short term.
  D. Bonds to be held for sale in the short term.

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  Explanation

• Question 440:

  An organization facing rapid growth decides to employ a third party service provider to manage its customer relationship management function. Which of the following is true regarding the supporting application software used by that provider compared to an in-house developed system?

  1. Updating documentation is always a priority.

  2. System availability is usually more reliable.

  3. Data security risks are lower.

  4. Overall system costs are lower.

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

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  Explanation