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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 551:

  Which of the following security controls would provide the most efficient and effective authentication for customers to access their online shopping account?

  A. 12-digit password feature.
  B. Security question feature.
  C. Voice recognition feature.
  D. Two-level sign-on feature.
  A. 12-digit password feature.

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  Explanation

• Question 552:

  Which of the following can be viewed as a potential benefit of an enterprise-wide resource planning system?

  A. Real-time processing of transactions and elimination of data redundancies
  B. Fewer data processing errors and more efficient data exchange with trading partners
  C. Exploitation of opportunities and mitigation of risks associated with e-business
  D. Integration of business processes into multiple operating environments and databases
  D. Integration of business processes into multiple operating environments and databases

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  Explanation

• Question 553:

  Which of the following scenarios would cause a chief audit executive (CAE) to immediately discontinue using any statements that would indicate conformance with the Global Internal Audit Standards in an audit report?

  A. The internal audit function used a risk-based approach to create the internal audit plan
  B. The engagement supervisor considered requests from senior management regarding engagements to include in the internal audit plan
  C. The CAE only accepted engagements that the internal audit function collectively had the knowledge to perform
  D. The activity under review restricted the internal audit function's ability to access records, impacting the audit results
  D. The activity under review restricted the internal audit function's ability to access records, impacting the audit results

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  Explanation

  The Global Internal Audit Standards require unrestricted access to records, personnel, and information. If access is restricted in such a way that audit results are compromised, the CAE cannot claim conformance with the Standards in any

  report until the issue is resolved.

  Options A, B, and C are all in alignment with the Standards and do not affect conformance. Only restriction of access (Option D) requires immediate discontinuation of conformance claims.

  IIA Standards - Standard 1110: Organizational Independence; Standard 1321: Use of "Conforms with the Standards."

• Question 554:

  Which of the following assists in ensuring mat information exchanged over IT systems is encrypted?

  A. Operating system
  B. Utility software
  C. Firewall
  D. Application software
  C. Firewall

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  Explanation

• Question 555:

  Which of the following inventory costing methods requires the organization to account for the actual cost paid for the unit being sold?

  A. Last-in-first-out (LIFO)
  B. Average cost
  C. First-in-first-out (FIFO)
  D. Specific identification
  D. Specific identification

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  Explanation

• Question 556:

  As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized data?

  A. The auditor eliminated duplicate information.
  B. The auditor organized data to minimize useless information.
  C. The auditor made data usable for a specific purpose by ensuring that anomalies were identified and corrected.
  D. The auditor ensured data fields were consistent and that data could be used for a specific purpose.
  A. The auditor eliminated duplicate information.

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  Explanation

  https://iaonline.theiia.org/blogs/Jim-Pelletier/2018/Pages/6-Essentials-to-Jump-start-Data-Analytics-in-Internal-Audit.aspx

• Question 557:

  According to Michael E. Porter's analysis of the evolution of global industries, the factor that is always necessary for an industry to become global is:

  A. The existence of environmental triggers to begin globalization.
  B. A strategic innovation.
  C. Marketing economies of scale.
  D. Changes in the costs of the factors of production.
  B. A strategic innovation.

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  Explanation

  The triggers of the evolution of global industries establish or exploit the sources of global competitive advantage. They also may negate the impediments to global competition. However, negating impediments will not result in globalization unless the firm has sufficient strategic advantages. Moreover, a strategic innovation is always necessary for an industry to become global. Environmental triggers include an increase in any of the types of economies of scale,lower transportation or storage costs, changes in distribution channels that facilitate access by foreign firms, changes in the costs of the factors of production, increased similarity of economic and social conditions in other nations, and reduction in governmental constraints. However, strategic innovations may begin globalization even if environmental triggers are not present. These innovations include, for example, product redefinition, reducing the costs of adapting a product for sale in different nations, design changes, and elimination of constraints.

• Question 558:

  Which of the following controls is designed to mitigate a physical IT risk?

  A. An automated fire prevention system.
  B. Access control restrictions in a system.
  C. Anti-malware protection software.
  D. A network isolating firewall system.
  B. Access control restrictions in a system.

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  Explanation

• Question 559:

  Which of the following is the primary goal of an effective business impact analysis?

  A. It includes business continuity program governance and risk management.
  B. It identifies key assets, critical processes, resources, and technology.
  C. It sets testing requirements for the organizationwide continuity functions.
  D. It outlines and communicates recovery points and objectives.
  D. It outlines and communicates recovery points and objectives.

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  Explanation

• Question 560:

  What is the last step in Porter's framework for developing a competitive strategy in a fragmented industry?

  A. Create a full list of reasons for fragmentation.
  B. Select the best strategy for operating in a fragmented environment.
  C. Evaluate whether a new structure will yield acceptable returns and what position the firm should occupy.
  D. Determine the industry's structure.
  B. Select the best strategy for operating in a fragmented environment.

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  Explanation

  The framework's initial steps determine the causes of fragmentation, analyze whether the causes can be overcome, and determine the best strategy if fragmentation can be overcome. The last step is determining the best strategy if fragmentation cannot be overcome.