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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 911:

  When an organization depends to a great extent on its environment, which of the following statements best characterizes the relationship among an organization's environment, the level of uncertainty it faces, and its structure? The more dynamic and complex the environment, the

  A. More uncertainty the organization will face and the more organic the structure should be.
  B. More uncertainty the organization will face and the more mechanistic the structure should be.
  C. Less uncertainty the organization will face and the more autocratic the structure should be.
  D. Less uncertainty the organization will face and the more organic the structure should be.
  A. More uncertainty the organization will face and the more organic the structure should be.

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  Explanation

  A dynamic and complex organizational environment faces constant change, so the level of uncertainty increases. The more uncertainty an organization faces, the more organic the structure should be. Organic organizations tend to be flexible and adaptive to change.

• Question 912:

  Which approach should a chief audit executive take when preparing the internal audit plan?

  A. Organize the auditable units within the organization into an audit universe to facilitate risk assessment
  B. Select auditable units within the organization based on monetary values
  C. Evaluate auditable units based on senior management's information about risks
  D. Eliminate auditable units not mandated to be audited by laws and regulations applicable to the organization
  A. Organize the auditable units within the organization into an audit universe to facilitate risk assessment

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  Explanation

  The internal audit plan should be risk-based. To achieve this, the CAE should develop an audit universe that lists all auditable units (processes, functions, systems, etc.) and use it as the foundation for risk assessment and prioritization.

  Option B is too narrow (monetary value is just one factor). Option C is incomplete since senior management's input is important but not the sole basis. Option D is incorrect because eliminating units not mandated by law ignores risk-based

  planning requirements.

  Thus, the most appropriate approach is Option A: establishing an audit universe.

  IIA Standards - Standard 2010: Planning; IIA Practice Guide - Developing a Risk-based Internal Audit Plan.

• Question 913:

  In which of the following scenarios would transfer pricing be used?

  A. Company A owns Company B; Company B sells goods to Company A.
  B. Company A does not own Company B. Company A charges Company B a fee to sell Company B's goods without taking ownership of the goods.
  C. Company A owns both Company B and Company C; all three companies sell goods to the public.
  D. Company A moves goods internally from one location to another.
  A. Company A owns Company B; Company B sells goods to Company A.

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  Explanation

• Question 914:

  In an organization that produces chocolate, the leadership team decides that the organization will open a milk production facility for its milk chocolate. Which of the following strategies has the organization chosen?

  A. Vertical integration.
  B. Unrelated diversification.
  C. Differentiation.
  D. Focus.
  A. Vertical integration.

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  Explanation

• Question 915:

  Which of the following focuses on finding statistical relationships in order to create profiles?

  A. Process mining.
  B. Process analysis.
  C. Data mining.
  D. Data analysis.
  D. Data analysis.

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  Explanation

  https://www.researchgate.net/profile/Mohamed_Hammad11/post/What_instrument_is_used_to_analyze_qualitative_descriptive_data/attachment/59d659ca79197b80779af218/AS%3A543750520664064%401506651634578/ download/CHAPTER+6-+DATA+ANALYSIS+AND+INTERPRETATION.pdf

• Question 916:

  Which of the following distinguishes the added-value negotiation method from traditional negotiating methods?

  A. Each party's negotiator presents a menu of options to the other party.
  B. Each party adopts one initial position from which to start.
  C. Each negotiator minimizes the information provided to the other party.
  D. Each negotiator starts with an offer, which is optimal from the negotiator's perspective.
  A. Each party's negotiator presents a menu of options to the other party.

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  Explanation

• Question 917:

  Which of these instances accurately describes the responsibilities for big data governance?

  A. Management must ensure information storage systems are appropriately defined and processes to update critical data elements are clear.
  B. External auditors must ensure that analytical models are periodically monitored and maintained.
  C. The board must implement controls around data quality dimensions to ensure that they are effective.
  D. Internal auditors must ensure the quality and security of data, with a heightened focus on the riskiest data elements.
  D. Internal auditors must ensure the quality and security of data, with a heightened focus on the riskiest data elements.

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  Explanation

• Question 918:

  Which of the following best describes a market synergy?

  A. Technology transfer from one product to another.
  B. Bundling of products distributed through the same channels.
  C. Production of multiple products at one facility.
  D. Use of complementary management skills to achieve entry into a new market.
  B. Bundling of products distributed through the same channels.

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  Explanation

  Market synergy arises when products or services have positive complementary effects. Shopping malls reflect this type of synergy. Also, bundling of products, distribution through the same distribution channels, and use of the same sales force are other examples of market synergies.

• Question 919:

  According to thebehavioral theory of management:

  A. Employees are motivated to fulfill needs.
  B. Morale problems are not goal related.
  C. Compensation is a universal motivator.
  D. Productivity is not correlated with job satisfaction.
  A. Employees are motivated to fulfill needs.

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  Explanation

  The behavioral theory of management holds that all people including employees) have complex needs, desires, and attitudes. The fulfillment of needs is the goal toward which employees are motivated. Effective leadership matches need-fulfillment rewards with desired behavior tasks) that accomplishes organizational goals.

• Question 920:

  Following an evaluation of an organization's IT controls, an internal auditor suggested improving the process where results are compared against the input. Which of the following IT controls would the internal auditor recommend?

  A. Output controls.
  B. Input controls.
  C. Processing controls.
  D. Integrity controls
  B. Input controls.

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  Explanation