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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 881:

  Two individuals negotiate the details and put a deal in written form. The individuals have developed a good relationship and future negotiations will benefit. Which step of thevalue- addednegotiating process has taken place?

  A. Perfect the deal.
  B. Identify options.
  C. Design alternative deal packages.
  D. Select a deal.
  A. Perfect the deal.

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  Explanation

  The individuals performed step five of value-added negotiation by perfecting the deal. This step is characterized by negotiating details and putting the deal in written form. The process creates relationships that will benefit later negotiations.

• Question 882:

  Which one of the following is not an example of formal internal communication?

  A. Input for the yearly budget provided by the Purchasing Department to the director of budgeting.
  B. Environmental impact statements.
  C. Expense account reports.
  D. Safety bulletins.
  B. Environmental impact statements.

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  Explanation

  A formal communication is conducted through the formal structure of the organization. Informal communication operates outside of officially established channels. An internal communication is one that is both generated and received within the organization. An environmental impact statement is generated within the organization, but the recipient a governmental body) is outside the organization.

• Question 883:

  An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?

  A. 26 days.
  B. 90 days.
  C. 100 days.
  D. 110 days.
  B. 90 days.

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  Explanation

• Question 884:

  Which of the following stages of contracting focuses on aligning the markets with objectives of the organization?

  A. Initiation stage
  B. Bidding stage
  C. Development stage
  D. Negotiation stage
  D. Negotiation stage

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  Explanation

• Question 885:

  Which of the following statements is true regarding user-developed applications (UDAs) and traditional IT applications?

  A. UDAs and traditional IT applications typically follow a similar development life cycle.
  B. A UDA usually includes system documentation to illustrate its functions, and IT-developed applications typically do not require such documentation.
  C. Unlike traditional IT applications, UDAs typically are developed with little consideration of controls.
  D. IT testing personnel usually review both types of applications thoroughly to ensure they were developed properly.
  D. IT testing personnel usually review both types of applications thoroughly to ensure they were developed properly.

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  Explanation

• Question 886:

  A manager can use power and authority to accomplish objectives. The relationship between these two important concepts is best explained as follows:

  A. Power is the right to do things, while authority is the ability to do things.
  B. Authority is the right to do things, while power is the ability to do things.
  C. Power and authority are both required to accomplish a task.
  D. Power and authority are simply two words that describe the same concept -- how to get things done in organizations.
  B. Authority is the right to do things, while power is the ability to do things.

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  Explanation

  Authority is the officially sanctioned privilege to direct others. A clear hierarchy of authority enhances coordination and accountability. Power is the ability to marshal organizational resources to obtain results. A manager may have both authority and power, or one without the other.

• Question 887:

  During a review of the tendering process, an internal auditor observes that unusual bidding requirements for IT hardware across several tenders appears to consistently favor one supplier. The internal auditor suspects that a bid-rigging scheme is occurring. Which of the following best describes the methodology used by the internal auditor?

  A. Diagnostic analysis.
  B. Predictive analysis.
  C. Textual analysis.
  D. Network analysis.
  A. Diagnostic analysis.

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  Explanation

• Question 888:

  What would be the effect if an organization paid one of its liabilities twice during the year in error?

  A. Assets liabilities and owners' equity would be understated
  B. Assets net income and owners' equity would be unaffected
  C. Assets and liabilities would be understated
  D. Assets net income and owners' equity would be understated, but liabilities would be overstated
  C. Assets and liabilities would be understated

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  Explanation

• Question 889:

  A major IT project is scheduled to be implemented over a three-month period during the year. The chief audit executive (CAE) scheduled significant audit resources to provide consultation. Due to technical challenges from a supplier, the project is postponed until the following year.

  What should the CAE do in this case?

  A. Communicate to the IT project manager that the audit resources are still available to his department for other projects
  B. Reassign the available audit resources to other areas of risk and advise the respective managers in those areas
  C. Amend the plan accordingly and advise the board and senior management for their review and approval
  D. Keep the available resources unassigned so that they are able to take on any ad hoc assignment that may arise
  C. Amend the plan accordingly and advise the board and senior management for their review and approval

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  Explanation

  The internal audit plan must remain dynamic and responsive to changes in circumstances. If a key project is postponed, the CAE should amend the audit plan, reallocate resources appropriately, and inform the board and senior management

  for review and approval. This ensures transparency and continued alignment with organizational risks.

  Option A improperly shifts audit resources under management's direction. Option B may be considered but requires board and management approval through an amended plan. Option D leaves resources idle, which is inefficient.

  IIA Standards - Standard 2020: Communication and Approval.

• Question 890:

  An advisable strategy for a participant in a meeting of the internal auditing staff is to:

  A. Read the agenda and supporting materials for the meeting during the early part of the meeting to prepare for later discussion.
  B. Present strong opinions on one side of a proposal right away.
  C. Present views as trial balloons that can be researched later.
  D. Consider the opinions and information needs of other participants before speaking.
  D. Consider the opinions and information needs of other participants before speaking.

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  Explanation

  Analyzing the audience assists a speaker to gather the right information for the meeting. Moreover, understanding the other participants' opinions and needs enables the speaker to express his/her ideas in the way best calculated to be persuasive.