Latest IIA-CIA-Part3 Study Materials With Free Demo Questions For Checking

Regina2021-10-06T02:38:30+00:00

Testing CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3 exam verifies the candidates’ knowledge, skills, and abilities particularly as they relate to these core business concepts. Latest IIA-CIA-Part3 study materials provided by ITExamShop cover all the exam knowledge points and skills mesured, which are regarded as good quality preparation material whenever you have a brief time in your upcoming CIA Exam Part Three: Business Knowledge for Internal Auditing certification exam and by preparing with them you can pass your IIA-CIA-Part3 exam in the 1st try. Additionally, the latest IIA-CIA-Part3 study materials come with free demo questions for checking.

CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3 Free Demo Questions

Page 1 of 4

1. Which of the following professional organizations sets standards for quality and environmental audits?

The Committee of Sponsoring Organizations of the Treadway Commission.

The Board of Environmental, Health, and Safety Auditor Certifications.

The International Organization of Supreme Audit Institutions.

The International Standards Organization.

2. Which of the following statements regarding database management systems is not correct?

Database management systems handle data manipulation inside the tables, rather than it being done by the operating system itself in files.

The database management system acts as a layer between the application software and the operating system.

Applications pass on the instructions for data manipulation which are then executed by the database management system.

The data within the database management system can only be manipulated directly by the database management system administrator.

3. An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement.

Which of the following approaches is most appropriate to address this concern?

The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.

The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.

The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.

The organization should work with the service provider to review the current agreement and expectations relating to objectives, processes, and overall performance.

4. During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?

Scope and initiation phase.

Business impact analysis.

Plan development.

Testing.

5. Which of the following is not a barrier to effective communication?

Filtering.

Communication overload.

Similar frames of reference.

Lack of source credibility.

6. All of the following are possible explanations for a significant unfavorable material efficiency variance except:

Cutbacks in preventive maintenance.

An inadequately trained and supervised labor force.

A large number of rush orders.

Production of more units than planned for in the master budget.

7. According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?

Determine the optimal amount of resources for the organization to invest in CS

Align CSR program objectives with the organization's strategic plan.

Integrate CSR activities into the organization's decision-making process.

Determine whether the organization has an appropriate policy governing its CSR activities.

8. Which of the following statements regarding program change management is not correct?

The goal of the change management process is to sustain and improve organizational operations.

The degree of risk associated with a proposed change determines if the change request requires authorization.

In order to protect the production environment, changes must be managed in a repeatable, defined, and predictable manner.

All changes should be tested in a non-production environment before migrating to the production environment.

9. In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

A tougher collections policy that reduces the bad debt loss ratio.

A higher cost per unit sold.

A longer average collection period.

An increase in the cost of capital.

10. Which of the following describes the free trade zone in an e-commerce environment?

Zone that separates an organization's servers from outside forces.

Area in which messages are scrutinized to determine if they are authorized.

Area where communication and transactions occur between trusted parties.

Zone where data is encrypted, users are authenticated, and user traffic is filtered.

Page 2 of 4

11. Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?

A time-sensitive just-in-time purchase environment.

A large volume of custom purchases.

A variable volume sensitive to material cost.

A currently inefficient purchasing process.

12. Which of the following stages of group development is associated with accepting team responsibilities?

Forming stage.

Performing stage.

Norming stage.

Storming stage.

13. Pricing models linked to seasonal demand.

1 and 2 only

2 and 3 only

1, 2, and 3 only

1, 2, 3, and 4

14. In which type of business environment are price cutting strategies and franchising strategies most appropriate?

Embryonic, focused.

Fragmented, decline.

Mature, fragmented.

Competitive, embryonic.

15. A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing.

The best approach for detecting missing rows in spreadsheet data would be to:

Sort on product identification code and identify missing product identification codes.

Review store identification code and identify missing product identification codes.

Compare product identification codes for consecutive periods.

Compare product identification codes by store for consecutive periods.

16. A chief audit executive (CAE) was asked to participate in the selection of an external auditor.

Which of the following would not be a typical responsibility for the CAE?

Evaluate the proposed external auditor fee.

Recommend criteria to be used in the selection process.

Develop appropriate performance metrics.

Monitor the work of the external auditors.

17. Which of the following is the primary benefit of including end users in the system development process?

Improved integrity of programs and processing.

Enhanced ongoing maintenance of the system.

Greater accuracy of the testing phase.

Reduced need for unexpected software changes.

18. Multinational organizations generally spend more time and effort to identify and evaluate:

Internal strengths and weaknesses.

Break-even points.

External trends and events.

Internal risk factors.

19. Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.

1 and 2 only

3 and 4 only

1, 2, and 4 only

2, 3, and 4 only

20. Which of the following standards would be most useful in evaluating the performance of a customer-service group?

The average time per customer inquiry should be kept to a minimum.

Customer complaints should be processed promptly.

Employees should maintain a positive attitude when dealing with customers.

All customer inquiries should be answered within seven days of receipt.

Page 3 of 4

21. Which of the following is false with regard to Internet connection firewalls?

Firewalls can protect against computer viruses.

Firewalls monitor attacks from the Internet.

Firewalls provide network administrators tools to retaliate against hackers.

Firewalls may be software-based or hardware-based.

22. Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:

Motivation.

Performance.

Organizational structure.

Communication.

23. An organization is considering mirroring the customer data for one regional center at another center.

A disadvantage of such an arrangement would be:

Lack of awareness of the state of processing.

Increased cost and complexity of network traffic.

Interference of the mirrored data with the original source data.

Confusion about where customer data are stored.

24. Which of the following costs would be incurred in an inventory stockout?

Lost sales, lost customers, and backorder.

Lost sales, safety stock, and backorder.

Lost customers, safety stock, and backorder.

Lost sales, lost customers, and safety stock.

25. Which of the following corporate social responsibility strategies is likely to be most effective in minimizing confrontations with influential activists and lobbyists?

Continually evaluate the needs and opinions of all stakeholder groups.

Ensure strict compliance with applicable laws and regulations to avoid incidents.

Maintain a comprehensive publicity campaign that highlights the organization's efforts.

Increase goodwill through philanthropic activities among stakeholder communities.

26. Which of the following is the best approach to overcome entry barriers into a new business?

Offer a standard product that is targeted in the recognized market.

Invest in commodity or commodity-like product businesses.

Enter into a slow-growing market.

Use an established distribution relationship.

27. Ensure that performance targets are always achieved.

1 and 3 only

2 and 4 only

1, 2, and 3 only

1, 2, 3, and 4

28. According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?

To ensure that adequate controls exist to prevent any significant business interruptions.

To identify and address potential security weaknesses within the system.

To ensure that tests contribute to improvement of the program.

To ensure that deficiencies identified by the audit are promptly addressed.

29. According to the waterfall cycle approach to systems development, which of the following sequence of events is correct?

Program design, system requirements, software design, analysis, coding, testing, operations.

System requirements, software design, analysis, program design, testing, coding, operations.

System requirements, software design, analysis, program design, coding, testing, operations.

System requirements, analysis, coding, software design, program design, testing, operations.

30. International marketing activities often begin with:

Standardization.

Global marketing.

Limited exporting.

Domestic marketing.

Page 4 of 4

31. During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent.

What is the closing inventory if the periodic inventory system is used?

$170,000

$280,000

$300,000

$540,000

32. Which is the least effective form of risk management?

Systems-based preventive control.

People-based preventive control.

Systems-based detective control.

People-based detective control.

33. Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

Times interest earned, return on assets, and inventory turnover.

Accounts receivable turnover, inventory turnover in days, and the current ratio.

Accounts receivable turnover, return on assets, and the current ratio.

Inventory turnover in days, the current ratio, and return on equity.

34. 5

Based on this data, which of the following describes the value of Cost X in relation to the value of Output Produced?

Cost X is a variable cost.

Cost X is a fixed cost.

Cost X is a semi-fixed cost.

Cost X and the value of Output Produced are unrelated.

35. Provide broad oversight of implementation, training, and operation of new systems.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

36. Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

Fragmented industries.

Declining industries.

Mature industries.

Emerging industries.

37. Which of the following statements about COBIT is not true?

COBIT helps management understand and manage the risks associated with information technology (IT) processes.

Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.

COBIT control objectives are specific to various IT platforms and help determine minimum controls.

COBIT provides management with the capability to conduct self-assessments against industry best practices.

38. Which of the following best describes an objective for an audit of an environmental management system?

To assess whether an annual control review is necessary.

To determine conformance with requirements and agreements.

To evaluate executive management oversight.

To promote environmental awareness.

Welcome To Choose Required IT Certification Exams Online

Latest IIA-CIA-Part3 Study Materials With Free Demo Questions For Checking

CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3 Free Demo Questions

Author

Leave a Reply Cancel reply