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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 701:

  An internal auditor has been approved lo gather data directly horn the organization's relational database management system tor data analyses To collect the data which of the Wowing is most important for the auditor to know?

  A. Structured query language
  B. Spreadsheet software such as Excel
  C. Data management system such as Oracle
  D. Basic web development
  A. Structured query language

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  Explanation

• Question 702:

  Which of the following most accurately describes the purpose of application authentication controls?

  A. To ensure that data input into business applications is valid, complete, and accurate.
  B. To prevent or detect errors in data processed using business applications.
  C. To ensure that business applications are protected from unauthorized logical access.
  D. To ensure the validity, accuracy, and completeness of outputs from business applications.
  C. To ensure that business applications are protected from unauthorized logical access.

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  Explanation

• Question 703:

  According to the Boston Consulting Group's portfolio model for competitive analysis, the strategy fora strong cash cow should be

  A. Harvest.
  B. Divest.
  C. Hold.
  D. Build.
  C. Hold.

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  Explanation

  A hold strategy is used for strong cash cows. It is necessary if the business is to continue to generate large net cash inflows. Harvesting might impair a strong cash cow's ability to generate long-term positive net cash inflows.

• Question 704:

  Which of the following results is most likely to occur when public media are used to resolve disputes between employees and management?

  A. The company's image may be improved.
  B. Public opinion may pressure the parties to resolve the dispute.
  C. Communication between employees and management is improved.
  D. The need for support from a union is increased.
  B. Public opinion may pressure the parties to resolve the dispute.

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  Explanation

  When public media are used as tools for resolving employee-management disputes, communication is hindered because the issues are addressed to the public rather than discussed with the other party. Moreover, compromise becomes difficult because the stated conclusions are solidified by public opinion. However, the need for union support is reduced because public pressure may help to resolve the negotiations.

• Question 705:

  Which of the following is a characteristic of an emerging industry?

  A. Established strategy of players.
  B. Low number of new firms.
  C. High unit costs.
  D. Technicalexpertise.
  C. High unit costs.

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  Explanation

• Question 706:

  Which of the following is the most appropriate beginning step of a work program for an assurance engagement involving smart devices?

  A. Train all employees on bring-your-own-device (BYOD) policies
  B. Understand what procedures are in place for locking lost devices
  C. Obtain a list of all smart devices in use
  D. Test encryption of all smart devices
  C. Obtain a list of all smart devices in use

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  Explanation

• Question 707:

  When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?

  1. Management's tolerance for specific risks.

  2. The cost versus benefit of implementing a control.

  3. Whether a control can mitigate multiple risks.

  4. The ability to test the effectiveness of the control.

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

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  Explanation

• Question 708:

  Which of the following statements is true regarding the relationship between an individual's average tax rate and marginal tax rate?

  A. In a regressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.
  B. In a regressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.
  C. In a progressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.
  D. In a progressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.
  D. In a progressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.

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  Explanation

• Question 709:

  Which of the following statements about assurance maps is true?

  A. They help identify gaps and duplications in an organization's assurance coverage
  B. They allow the board to coordinate activities of internal and external assurance providers
  C. They help identify which assurance provider is responsible for performing each audit listed in the annual internal audit plan
  D. They allow internal auditors to map competencies and specialty areas of the assurance providers in an organization
  A. They help identify gaps and duplications in an organization's assurance coverage

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  Explanation

  An assurance map provides an overview of assurance activities across the organization and helps identify gaps (uncovered risks) and duplications (overlap of work). This enhances coordination among assurance providers and supports the

  board's governance oversight.

  Option B is incorrect because the board does not coordinate activities; internal audit facilitates assurance mapping. Option C misinterprets the tool--it does not assign specific audits. Option D refers to staff competencies, not assurance

  coverage.

  IIA Practice Guide - Coordination and Reliance: Developing an Assurance Map.

• Question 710:

  Which of the following principles is shared by both hierarchical and open organizational structures?

  1) A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions 2) A supervisor's span of control should not exceed seven subordinates 3) Responsibility should be accompanied by adequate authority 4) Employees at all levels should be empowered to make decisions.

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

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  Explanation