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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 561:

  An internal auditor is evaluating an organization's business continuity management program According to the guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?

  A. End-to-end testing
  B. IT systems and application walkthrough
  C. Tabletop or boardroom-style testing
  D. Desk check testing
  A. End-to-end testing

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  Explanation

• Question 562:

  If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?

  A. Productdepartmentalization.
  B. Processdepartmentalization.
  C. Functionaldepartmentalization.
  D. Customerdepartmentalization.
  D. Customerdepartmentalization.

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  Explanation

• Question 563:

  Timing of entry into an emerging industry is a critical choice. Pioneering firms face high risk but low barriers. Which of the following is not a factor that favors early entry?

  A. The bases of competition and market segments will change.
  B. The learning curve advantage will persist.
  C. Customer loyalty will be high.
  D. Cost advantages can be secured.
  A. The bases of competition and market segments will change.

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  Explanation

  If the bases of competition and market segments will change significantly, an early entrant may lose the advantage obtained by being an early entrant. Other factors not favoring early entry include the following:(1) costs of opening the market are high and the benefits cannot be retained by the firm, (2) early competition will be expensive and larger and stronger competitors will emerge later, and (3) early products and processes will become obsolete.

• Question 564:

  Which of the following best describes the primary objective of cybersecurity?

  A. To protect the effective performance of IT general and application controls.
  B. To regulate users' behavior in the web and cloud environment.
  C. To prevent unauthorized access to information assets.
  D. To secure application of protocols and authorization routines.
  C. To prevent unauthorized access to information assets.

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  Explanation

• Question 565:

  After identifying and reporting a control deficiency, which of the following actions should an internal auditor perform next?

  A. Ensure full documentation of the control deficiency and close out the audit file
  B. Follow up on the remediation status with business management periodically
  C. Note this control area "audited" and mark it as out-of-scope for the following year
  D. Design a remediation plan and ensure operational management follows through
  B. Follow up on the remediation status with business management periodically

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  Explanation

  The auditor's responsibility does not end with reporting a control deficiency. The CAE must monitor progress and follow up periodically with management to confirm whether corrective actions have been implemented.

  Option A stops at documentation and fails to ensure corrective action. Option C incorrectly assumes no further audit is needed. Option D assigns management's responsibility to the auditor, which would impair independence.

  IIA Standards - Standard 2500: Monitoring Progress.

• Question 566:

  A firm wishes to enter a new business by creating a new entity (an internal entrant). The internal entrant is most likely to achieve above-average profits by targeting which industry?

  A. An industry with high entry costs.
  B. An industry with a stabilized structure.
  C. A new industry.
  D. An industry in equilibrium if entry positively affects the firm's existing businesses.
  C. A new industry.

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  Explanation

  A firm may be able to achieve above-average profits by choosing appropriate targets. For example, an industry may be in disequilibrium because it is new, entry barriers are rising, or firms have poor information. In a new industry, (1) the structure is not established,

  (2) entry barriers are low, (3) retaliation is unlikely, (4) resource supplies have not been locked up, and (5) brands are not well developed. However, initial firms may have greater costs than later entrants. Rising entry barriers favor an early entrant whose subsequent competitors will face higher costs. The early entrant also may have an edge in product differentiation. Poor information may perpetuate disequilibrium because firms that might enter the industry may not be aware of its potential.

• Question 567:

  During which stages do the primary issues among group members involve uncertainty about power and authority relationships?

  A. Yes Yes
  B. Yes No
  C. No Yes
  D. No No
  B. Yes No

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  Explanation

  According to Jewell and Reill, the principal issue in the early stages in uncertainty about power and authority relationships. The principal issue in the later stages is uncertainty about interpersonal relationships.

• Question 568:

  Firm A mostly does business in markets in the southern part of the country. Firm B mostly does business in markets in the western part of the country. However, Firm A has recently moved to compete with Firm B in the western part of the country by introducing its existing products there. Accordingly, Firm B has entered Firm As primary markets. What kind of market signal did Firm B send?

  A. A cross-parry.
  B. A bluff.
  C. An introduction of a fighting brand.
  D. A direct response.
  A. A cross-parry.

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  Explanation

  The cross-parry is a response to a competitor's move in one area with a move in another. For example, Firm X, which is well entrenched in region A, may move to compete with Firm Y in its stronghold in region B. Firm Ys cross-parry is to enter the market in region A. A cross-parry is an indirect response by the defending firm that potentially avoids destructive conflict in the newly penetrated market. However, it also signals the possibility of retaliation, especially if it occurs in one of the initiating firm's key markets. For example, price cutting as a cross-parry may be very effective against a firm with a large share of the market where the parry is made. This firm has more to lose in a price war in that market. Consequently, maintenance of a presence in a cross market deters the large-share firm from attacking elsewhere.

• Question 569:

  Both Maslow and Herzberg have developed popular motivational theories. Which statement best distinguishes Herzberg's theory?

  A. Job performance improves as job satisfaction increases.
  B. Job performance improves as physiological needs are met.
  C. Job esteem improves as physiological needs are met.
  D. Job esteem improves as job satisfaction increases.
  A. Job performance improves as job satisfaction increases.

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  Explanation

  Frederick Herzberg's two-factor theory of human behavior postulates that there are two classes of factors in the job situation. Maintenance or hygiene factors are those whose presence will not especially motivate people but whose absence will diminish performance. These factors are extrinsic to the work itself. They include supervision, working conditions, interpersonal relations, salary, and status. Motivational factors are those the absence of which will not diminish performance but the addition or availability of which will motivate employees. Intrinsic to the work itself, these include achievement, recognition, challenging work, advancement, growth in the job, and responsibility.

• Question 570:

  Data encryption is an example of which of the following controls?

  A. Application control.
  B. IT general control
  C. Data input control
  D. Data output control
  D. Data output control

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  Explanation