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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 721:

  Which of the following is not a limit on emerging industry development?

  A. Raw materials and components.
  B. Subsidies.
  C. Product quality.
  D. Regulatory approval.
  B. Subsidies.

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  Explanation

  Subsidies are a structural characteristic of an emerging market. If a subsidy is given by the government or other party, it usually assists the growth of the new industry instead of hindering it. Subsidies tend to focus on radically new technology or technology in which societal concern is strong.

• Question 722:

  Which of the following describes how human resources can best assist in recruitment efforts for the internal audit function?

  A. Prepare competency-based interview questions and interview potential candidates
  B. Leverage the organization's intranet and recruiting agencies to search for potential candidates
  C. Forward all applications to the chief audit executive for review
  D. Select the most qualified candidate for the vacant position
  B. Leverage the organization's intranet and recruiting agencies to search for potential candidates

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  Explanation

  Human resources (HR) best supports the internal audit function by facilitating candidate sourcing through recruiting platforms, networks, and agencies. This broadens the pool of qualified applicants. The CAE and audit function should retain

  responsibility for assessing audit-specific skills and selecting the best candidate.

  Option A may be part of HR's role but competency evaluation is more specialized for audit. Option C is administrative, not strategic. Option D improperly delegates candidate selection to HR instead of the CAE.

  IIA Standards - Standard 2030: Resource Management; Practice Guide - Effective Internal Audit Staffing.

• Question 723:

  Focus An organization has decided to have all employees work from home. Which of the following network types would securely enable this approach?

  A. A wireless local area network (WLAN ).
  B. A personal area network (PAN).
  C. A wide area network (WAN).
  D. A virtual private network (VPN)
  D. A virtual private network (VPN)

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  Explanation

  When employees work from home, secure remote access to the organization's network is essential to protect data and ensure confidentiality. A Virtual Private Network (VPN) is the best option for enabling this securely.

  Correct Answer (D - A Virtual Private Network (VPN))

  A VPN creates a secure, encrypted connection between the employee's device and the organization's internal network.

  It prevents unauthorized access by ensuring that data is transmitted securely over the internet.

  The IIA GTAG 17: Auditing Network Security recommends VPNs for secure remote work environments to prevent cyber threats.

  Why Other Options Are Incorrect:

  Option A (A Wireless Local Area Network - WLAN):

  A WLAN is used within an office or home environment , but it does not provide secure remote access to an organization's network .

  Option B (A Personal Area Network - PAN):

  A PAN connects devices like smartphones and laptops within a short range (e.g., Bluetooth), but it is not suitable for secure remote access .

  Option C (A Wide Area Network - WAN):

  A WAN connects multiple locations , but it does not provide encryption or remote security like a VPN .

  IIA GTAG 17: Auditing Network Security - Recommends VPNs for secure remote access.

  IIA Practice Guide: Auditing IT Security Controls - Covers VPNs as a key security control for remote work.

  Step-by-Step Explanation:IIA References for Validation:Thus, D is the correct answer because a VPN ensures secure, encrypted communication for employees working from home.

• Question 724:

  Which of the following is an advantage of a tall organizational structure?

  A. The flow of communications from top to bottom and bottom to top is improved.
  B. The organization's overall objectives are familiar to all employees.
  C. More opportunity to advance.
  D. Labor expenses are reduced.
  C. More opportunity to advance.

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  Explanation

  The organizational structure consists of the order, disposition, and relationships of positions and lines of responsibility within an entity. In a tall organizational structure, decision-making responsibility is shared by many levels.

• Question 725:

  Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?

  1. The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.

  2. The IAA must assess whether the IT governance of the organization supports the organization's strategies and objectives.

  3. The IAA may assess whether the IT governance of the organization supports the organization's strategies and objectives.

  4. The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.

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

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  Explanation

• Question 726:

  Which of the following networks is best for an organization to use when employees are granted access rights to authenticate themselves to the IT resources from outside the organization?

  A. Local area network.
  B. Wide area network.
  C. Metropolitan area network.
  D. Virtual private network.
  D. Virtual private network.

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  Explanation

• Question 727:

  Organizational activities that complement each other and create a competitive advantage are called a:

  A. Merger.
  B. Strategic fit.
  C. Joint venture.
  D. Strategic goal.
  B. Strategic fit.

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  Explanation

• Question 728:

  Which of the following bring-your-own-device (BYOD) practices is likely to increase the risk of infringement on local regulations, such as copyright or privacy laws?

  A. Not installing anti-malware software.
  B. Updating operating software in a haphazard manner.
  C. Applying a weak password for access to a mobile device.
  D. Jailbreaking a locked smart device.
  D. Jailbreaking a locked smart device.

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  Explanation

• Question 729:

  Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

  A. Cost method
  B. Equity method
  C. Consolidation method
  D. Fair value method
  B. Equity method

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  Explanation

• Question 730:

  According to IIA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

  A. Report identifying data that is outside of system parameters.
  B. Report identifying general ledger transactions by time and individual.
  C. Report comparing processing results with original input.
  D. Report confirming that the general ledger data was processed without error.
  B. Report identifying general ledger transactions by time and individual.

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  Explanation