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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 731:

  Which of the following is a characteristic of big data?

  A. Big data is being generated slowly due to volume.
  B. Big data must be relevant for the purposes of organizations.
  C. Big data comes from a single type of format.
  D. Big data is always changing.
  D. Big data is always changing.

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  Explanation

• Question 732:

  A supportive behavior that a listener, such as an auditor or a supervisor, can use to encourage a speaker would be to:

  A. Look away from the speaker to avoid any intimidation.
  B. Interject a similar incident or experience.
  C. Stop other activity or work while the person is talking.
  D. Not respond verbally until the speaker stops talking.
  C. Stop other activity or work while the person is talking.

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  Explanation

  An effective listener enhances the communication process by sending appropriate nonverbal signals to the speaker. Thus, even though a person can probably listen and do some routine work, a listener who wishes to convey a positive and encouraging message should stop other activities and focus complete attention on the speaker.

• Question 733:

  According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?

  A. Project portfolio.
  B. Project development.
  C. Project governance.
  D. Project management methodologies.
  D. Project management methodologies.

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  Explanation

• Question 734:

  The workers in a factory have been told that the current machines are obsolete and will be replaced by new, computer- assisted machines. The workers must be retrained and are eager to learn everything about the new machines. The manager was recently hired from a company where the new machines were extensively used and is very familiar with them. In this case, what is the best leadership style for the manager?

  A. Directive.
  B. Supportive.
  C. Participative.
  D. Achievement-oriented.
  A. Directive.

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  Explanation

• Question 735:

  An internal audit activity is piloting a data analytics model, which aims to identify anomalies in payments to vendors and potential fraud indicators Which of the following would be the most appropriate criteria for assessing the success of the piloted model?

  A. The percentage of cases flagged by the model and confirmed as positives.
  B. The development and maintenance costs associated with the model
  C. The feedback of auditors involved with developing the model
  D. The number of criminal investigations initiated based on the outcomes of the model
  B. The development and maintenance costs associated with the model

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  Explanation

• Question 736:

  The chief audit executive (CAE) identified an unacceptable risk and believes that the risk is not being mitigated to an acceptable level. Which of the following is the CAE's next step in this situation?

  A. Escalate the concern to senior management
  B. Send a letter to responsible management and provide a deadline to accept the risk
  C. Escalate the concern to the board
  D. Discuss the issue with the members of responsible management
  D. Discuss the issue with the members of responsible management

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  Explanation

  When internal audit identifies a risk that appears unacceptable, the CAE should first discuss the matter with the responsible management. This ensures management has an opportunity to explain their rationale or adjust actions before

  escalation.

  Option A (direct escalation to senior management) or Option C (to the board) are appropriate only if management refuses to act. Option B (sending a letter with a deadline) is not aligned with IIA guidance.

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

• Question 737:

  An organization is considering integration of governance, risk, and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

  A. The board should be fully satisfied that there is an effective system of governance in place through accurate quality information provided
  B. Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting
  C. Key compliance and risk metrics can be tracked and compared throughout the enterprise aiding in identifying problem departments
  D. Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occur throughout the organization
  B. Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting

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  Explanation

• Question 738:

  In accounting, which of the following statements is true regarding the terms debit and credit?

  A. Debit indicates the right side of an account and credit the left side.
  B. Debit means an increase in an account and credit means a decrease.
  C. Credit indicates the right side of an account and debit the left side.
  D. Credit means an increase in an account and debit means a decrease.
  B. Debit means an increase in an account and credit means a decrease.

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  Explanation

• Question 739:

  Which of the following statements is in accordance with COBIT?

  1. Pervasive controls are general while detailed controls are specific.

  2. Application controls are a subset of pervasive controls.

  3. Implementation of software is a type of pervasive control.

  4. Disaster recovery planning is a type of detailed control.

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

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  Explanation

• Question 740:

  Which of the following statements regarding the necessary resources to achieve the internal audit plan is true?

  A. Ultimate oversight and responsibility for the internal audit function can be outsourced
  B. Relying upon the work of other assurance providers decreases the efficiency with which to retain auditors with high knowledge and experience
  C. Internal audit resources can be obtained entirely from outside the organization
  D. Co-sourcing, where experts from outside the organization perform specialized work, must be used by chief audit executives instead of outsourcing
  C. Internal audit resources can be obtained entirely from outside the organization

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  Explanation

  According to the Standards, internal audit activities can be provided through in-house resources, outsourcing, or a co-sourcing model. Therefore, it is possible for all resources to come from outside the organization, but ultimate responsibility

  and accountability remain with the CAE, management, and the board.

  Option A is incorrect because oversight cannot be outsourced. Option B is incorrect--coordination with other assurance providers typically increases efficiency. Option D misstates requirements; co-sourcing is an option, not a mandatory

  practice.

  IIA Standards - Standard 2070: External Service Provider and Organizational Responsibility for Internal Auditing.