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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 681:

  Conflict arising as a result of a sales manager making delivery promises to customers that are incompatible with the low inventory levels maintained by the production manager is an example of which of the following types of interpersonal conflict?

  A. Personal differences.
  B. Information deficiency.
  C. Role incompatibility.
  D. Environmental stress.
  C. Role incompatibility.

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  Explanation

  The sales manager has made promises that the production manager cannot keep. Their interpersonal conflict arises from a common type of role incompatibility. The sales manager'srole is to maximize sales, but the production manager's role is, in part, to achieve production efficiencies, for example, by maintaining low inventories. Thus, individual and Intergroupconflict has occurred because the functional responsibilities of the managers are interdependent in an interfunctional organization.

• Question 682:

  Which of me following storage options would give the organization the best chance of recovering data?

  A. Encrypted physical copies of the data and their encryption keys are stored together at the organization and are readily available upon request
  B. Encrypted physical copies of the data are stored separately from their encryption keys and both are held in secure locations a few hours away from me organization
  C. Encrypted reports on usage and database structure changes are stored on a cloud- based. secured database that is readily accessible
  D. Encrypted copies of the data are stored in a separate secure location a few hours away while the encryption keys are stored at the organization and are readily available
  D. Encrypted copies of the data are stored in a separate secure location a few hours away while the encryption keys are stored at the organization and are readily available

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  Explanation

• Question 683:

  According to the COSO enterprise risk management (ERM) framework, which of the following is not a typical responsibility of the chief risk officer?

  A. Establishing risk category definitions and a common risk language for likelihood and impact measures.
  B. Defining ERM roles and responsibilities.
  C. Providing the board with an independent, objective risk perspective on financial reporting.
  D. Guiding integration of ERM with other management activities.
  C. Providing the board with an independent, objective risk perspective on financial reporting.

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  Explanation

• Question 684:

  Which of the following attributes of data is most likely to be compromised in an organization with a weak data governance culture?

  A. Variety
  B. Velocity
  C. Volume
  D. Veracity
  A. Variety

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  Explanation

• Question 685:

  The generic strategic costs of vertical integration include:

  I . Reduction of operating leverage

  II. Need to overcome mobility barriers

  Ill. A decrease in exit barriers

  IV.

  Loss of access to supplier technology

  A. I and Ill only.
  B. II and IV only.
  C. II, Ill, and IV only.
  D. I, II, Ill, and IV.
  B. II and IV only.

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  Explanation

  Integration is a special case of entry into a new business. Thus, the firm must incur costs to overcome mobility barriers to enter the adjacent business:economies of scale, proprietary technology, capital investment, sources of materials, etc. Integration also increases fixed costs and operating leverage, which is in itself a cause of increased business risk. Thus, an integrated firm is exposed to fluctuations affecting any of its components. For example, sales of an upstream component depend on sales of downstream components. Moreover, integration may increase the difficulty of leaving the industry (exit barriers). Finally, integration may foreclose access to supplier or customer technology. The integrated firm may have to create its own technology rather than taking advantage of supplier/customer expertise.

• Question 686:

  All of the following are possible explanations for a significant unfavorable material efficiency variance except:

  A. Cutbacks in preventive maintenance.
  B. An inadequately trained and supervised labor force.
  C. A large number of rush orders.
  D. Production of more units than planned for in the master budget.
  D. Production of more units than planned for in the master budget.

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  Explanation

• Question 687:

  To assess the effectiveness of an organization's privacy program, which of the following approaches should an internal auditor take?

  A. Conduct a series of employee interviews
  B. Conduct penetration tests
  C. Review privacy policies and procedures
  D. Analyze the life cycle of sensitive data
  B. Conduct penetration tests

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  Explanation

• Question 688:

  Which of the following factors is most responsible for the increasing risk that unauthorized parties may obtain or tamper with personal data?

  A. The lack of legal and industry frameworks on privacy.
  B. The absence of generally accepted privacy principles.
  C. The rapid growth and evolution of technology.
  D. The legislated need to retain sensitive personal information.
  C. The rapid growth and evolution of technology.

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  Explanation

• Question 689:

  The economic order quantity can be calculated using the following formula:

  

  Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

  A. Decrease by about 17 percent.
  B. Decrease by about 7 percent.
  C. Increase by about 7 percent.
  D. Increase by about 17 percent.
  D. Increase by about 17 percent.

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  Explanation

• Question 690:

  Which of the following is an example of a risk avoidance response?

  A. Buying an insurance policy to protect against loss events.
  B. Hedging against natural gas price fluctuations.
  C. Selling a non-strategic business unit.
  D. Outsourcing a high risk process to a third party.
  C. Selling a non-strategic business unit.

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  Explanation