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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 461:

  During which of the following phases of contracting does the organization analyze whether the market is aligned with organizational objectives?

  A. Initiation phase.
  B. Bidding phase.
  C. Development phase.
  D. Negotiation phase.
  C. Development phase.

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  Explanation

• Question 462:

  The three major factors favoring globalization are

  A. Cultural, commercial, and technical.
  B. Flexibility, proximity, and adaptability.
  C. Political, technological, and social.
  D. Ambition, positioning, and organization.
  C. Political, technological, and social.

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  Explanation

  The new economy is driven by the digital revolution that facilitates international commerce by providing capabilities that did not exist a relatively few years ago. It is also driven by such political events as the fall of the Soviet Union, the participation of China in the world economic system, the emergence of the European Union, and the creation of other regional free trade zones. These technological and political factors are intertwined with social changes, for example, greater concern for the rights of women and minorities; the advance of multilingualism; and the convergence of tastes in fashion, music, and certain other cultural factors. Accordingly, these factors favor globalization by reducing trade barriers, reducing cost of coordination, increasing economies of scale, and encouraging standardization and global branding.

• Question 463:

  Internal auditors want to increase the likelihood of identifying very small control and transaction anomalies in their testing that could potentially be exploited to cause material breaches. Which of the following techniques would best meet this objective?

  A. Analysis of the full population of existing data.
  B. Verification of the completeness and integrity of existing data.
  C. Continuous monitoring on a repetitive basis.
  D. Analysis of the databases of partners, such as suppliers.
  A. Analysis of the full population of existing data.

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  Explanation

• Question 464:

  An organization's financial statements indicate a note that the financial statements have been prepared on the basis of the organization continuing operations for the foreseeable future. Which of the following accounting principles has been applied based on this note?

  A. Monetary unit assumption.
  B. Going concern assumption.
  C. Time period assumption.
  D. Economic entity assumption.
  B. Going concern assumption.

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  Explanation

• Question 465:

  During an internal audit engagement, it was found that several vendors were on a government sanctions list and must no longer be traded with. Which of the following would most effectively mitigate the risk of noncompliance with sanctions lists that are updated regularly?

  A. Agreements with sanctioned vendors discovered by internal audit will be placed on hold until further notice from the government
  B. A new procedure of vendor onboarding will be implemented to ensure that all new vendors undergo screenings against the sanctions list
  C. Controls will be embedded in the vendor management processes to ensure that new and existing vendors are compliant with changes to the sanctions list
  D. The legal team will be asked to prepare counter arguments to dispute audit findings and potential inquiries from the governmental authority
  C. Controls will be embedded in the vendor management processes to ensure that new and existing vendors are compliant with changes to the sanctions list

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  Explanation

  The most effective mitigation is to embed ongoing controls within vendor management processes to ensure that both new and existing vendors are continuously screened against updated sanctions lists. This creates a sustainable and

  automated compliance mechanism.

  Option A is reactive and does not address future compliance. Option B only addresses onboarding of new vendors but ignores existing ones. Option D undermines compliance obligations and does not mitigate risk.

  IIA Global Technology Audit Guide (GTAG): Auditing Third-Party Risk; IIA Standards - Standard 2130:Control.

• Question 466:

  What are the objectives of governance as defined by the Standards?

  A. Inform, direct, manage, and monitor.
  B. Identify, assess, manage, and control.
  C. Organize, assign, authorize, and implement.
  D. Add value, improve, assure, and conform.
  A. Inform, direct, manage, and monitor.

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  Explanation

• Question 467:

  When using data analytics during a review of the procurement process, what is the first step in the analysis process?

  A. Identify data anomalies and outliers.
  B. Define questions to be answered.
  C. Identify data sources available.
  D. Determine the scope of the data extract.
  C. Identify data sources available.

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  Explanation

• Question 468:

  Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

  A. The cost of goods sold for the period will be understated.
  B. The cost of goods sold for the period will be overstated.
  C. The net income for the period will be understated.
  D. There will be no effect on the cost of goods sold or the net income for the period.
  B. The cost of goods sold for the period will be overstated.

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  Explanation

• Question 469:

  An organization has 10 groups of teams that each consists of multi-skilled workers. Workers are often transferred between teams when needed, and communication among and within groups is emphasized. The corporation would be classified as a(n)

  A. Hourglass organization.
  B. Cluster organization.
  C. Network organization.
  D. Virtual organization.
  B. Cluster organization.

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  Explanation

  A cluster organization is essentially a group of teams. The workers are often multi-skilled and shift among teams as needed. The workers undergo special training and team-building exercises. The pay is also based upon knowledge.

• Question 470:

  According to MA guidance, which of the following would indicate poor change management control?

  1) Low change success rate 2) Occasional planned outages 3) Low number of emergency changes. 4) Instances of unauthorized changes

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

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  Explanation