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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 651:

  While performing an audit of a car tire manufacturing plant, an internal auditor noticed a significant decrease in the number of tires produced from the previous operating period. To determine whether worker inefficiency caused the decrease, what additional information should the auditor request?

  A. Total tire production labor hours for the operating period
  B. Total tire production costs for the operating period
  C. Plant production employee headcount average for the operating period
  D. Tire production machinery utilization rates
  A. Total tire production labor hours for the operating period

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  Explanation

• Question 652:

  Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

  A. Logical access controls monitor application usage and generate audit trails.
  B. The development process is designed to prevent, detect, and correct errors that may occur.
  C. A record is maintained to track the process of data from input, to output, to storage.
  D. Business users' requirements are documented, and their achievement is monitored.
  D. Business users' requirements are documented, and their achievement is monitored.

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  Explanation

• Question 653:

  A new internal auditor is collecting and analyzing data to investigate potential duplication of customer information. The data includes information unique to each customer. Which of the following should the auditor do to protect the customer data used for the analysis?

  A. Ensure that the data is secured on the auditor's storage device.
  B. Ensure that the data is stored in a cloud management system.
  C. Ensure that the data is protected through the use of a client-privilege agreement.
  D. Ensure that the data is safeguarded as required by established policies.
  D. Ensure that the data is safeguarded as required by established policies.

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  Explanation

• Question 654:

  The chief audit executive (CAE) has been asked to evaluate the chief technology officer's proposal to outsource several key functions in the organization's IT department. Which of the following would be the most appropriate action for the CAE to determine whether the proposal aligns with the organization's strategy?

  A. Understand strategic context and evaluate whether supporting information is reliable and complete
  B. Ascertain whether governance and approval processes are transparent, documented, and completed
  C. Perform a due diligence review or assess management's review of provider operations
  D. Identify key performance measures and data sources
  A. Understand strategic context and evaluate whether supporting information is reliable and complete

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  Explanation

• Question 655:

  Which of the following characteristics is most important specifically for a global manager to possess in order to be successful?

  A. Knowledge of different languages.
  B. Understanding of uncertainty avoidance differences
  C. Emotional intelligence
  D. Cultural intelligence
  D. Cultural intelligence

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  Explanation

• Question 656:

  Which of the following is a reason for delegating?

  A. The manager wants to make more decisions.
  B. Subordinates lack initiative.
  C. The manager wants to remain the sole expert in the manager's field.
  D. Subordinates have too many responsibilities.
  B. Subordinates lack initiative.

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  Explanation

  Delegation is the assignment of a manager's authority and/or workload to the manager's subordinates. By increasing subordinates' responsibilities, the manager gives them more opportunity to exercise judgment and become more confident.

• Question 657:

  The project manager responsible for overseeing a controversial project decides to accept the risks associated with the project launch. These risks might have a significant impact on the organization meeting its environmental sustainability goals.

  Which of the following is the most appropriate next step for the chief audit executive to take in response to the decision?

  A. Educate employees working on the project launch about the risks
  B. Notify the board about the significant risks the organization might face
  C. Communicate the risks to senior management
  D. Instruct the project manager to stop the controversial project development
  C. Communicate the risks to senior management

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  Explanation

  The CAE's first step when a project manager accepts a risk that appears significant is to discuss and communicate the risk with senior management. If management agrees with the project manager, and the CAE still considers the risk

  unacceptable, then it must be escalated to the board.

  Option A (employee education) is outside audit's role. Option B is premature--escalation to the board happens only if management does not resolve the issue. Option D is not within internal audit's authority.

  IIA Standards - Standard 2600: Communicating the Acceptance of Risks.

• Question 658:

  Which of the following best describes the purpose of disaster recovery planning?

  A. To reconstitute systems efficiently following a disruptive event.
  B. To define rules on how devices within the system should communicate after a disaster.
  C. To describe how data should move from one system to another system in case of an emergency.
  D. To establish a protected area of network that is accessible to the public after a disaster
  A. To reconstitute systems efficiently following a disruptive event.

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  Explanation

• Question 659:

  Entry into a new business may be by acquisition. An acquisition is most likely to earn aboveaverage profits when:

  A. The firm has competition from an irrational bidder.
  B. The economy is strong.
  C. The firm pays the seller a premium over the expected present value to the seller.
  D. The firm has a unique ability to operate the seller.
  D. The firm has a unique ability to operate the seller.

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  Explanation

  The buyer may have a unique ability to operate the seller. Thus, the buyer may (1) be uniquely able to improve operations or

  (2) purchase a firm in an industry that meets one of the conditions for an internal entrant to earn above- average profits (e.g., low entry costs or disequilibrium).

• Question 660:

  An organization has received funding to continue a program that utilizes an in-house Due to new legislative requirements the application will require additional features to capture information not previously collected.

  Which of the following is the most critical for completing this specific project?

  A. A detailed budget that identifies hardware resources for the project
  B. A Gantt chart that identifies the critical path for completing the project
  C. Change management controls to avoid technical conflicts within the application
  D. A project plan with a flexible scope to accommodate legislative requirements
  C. Change management controls to avoid technical conflicts within the application

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  Explanation