IIA CIA Exam Part Three: Business Knowledge for Internal Auditing - IIA-CIA-Part3-3P FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

Based on lest results an IT auditor concluded that the organization would suffer unacceptable toss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

A. Returned backup tapes from the offsite vendor contained empty spaces B. Critical system backup tapes are taken off site less frequently than required. C. Requested backup tapes were not returned from the offsite vendor in a timely manner D. Critical systems have been Backed up more frequently than required.

Discussion 0

Correct Answer: B Vote an answer

Question 2

Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?

A. Control activities. B. Control environment. C. Monitoring. D. Information and communication.

Discussion 0

Correct Answer: B Vote an answer

Question 3

An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?

A. 7 percent discount interest. B. 7 percent simple interest paid at the end of each year. C. 7 percent compounding interest. D. 7 percent simple interest with a 10 percent compensating balance.

Discussion 0

Correct Answer: B Vote an answer

Question 4

Which of the following is a characteristic of an emerging industry?

A. Low number of new firms. B. Established strategy of players. C. High unit costs. D. Technical expertise.

Discussion 0

Correct Answer: C Vote an answer

Question 5

Which stage in the industry life cycle is characterized by many different product variations?

A. Growth. B. Maturity. C. Introduction. D. Decline.

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Correct Answer: C Vote an answer

Question 6

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

Discussion 0

Correct Answer: D Vote an answer

Question 7

An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the dat a. Which of me following statements is true regarding this scenario?

A. The auditor is analyzing the data in preparation for communicating the results B. The auditor is cleaning the data in preparation for determining which processes may tie involved C. The auditor is reviewing the data prior to defining the question D. The auditor is normalizing data in preparation for analyzing it

Discussion 0

Correct Answer: D Vote an answer

Question 8

If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?

A. Conform with all other parts of The IIA's Standards and provide appropriate disclosures. B. Conform with all other parts of The IIA's Standards; there is no need to provide appropriate disclosures. C. Withdraw from the engagement. D. Continue the engagement without conforming with the other parts of The IIA's Standards.

Discussion 0

Correct Answer: A Vote an answer

Question 9

Which of the following budgets serves as a basis for the budgeted income statement?

A. Only the sales and production budgets B. All financial budgets C. Only the cash budget and budgeted balance sheet D. All operating budgets

Discussion 0

Correct Answer: D Vote an answer

Question 10

Which of the following would best prevent unauthorized external changes to an organization's data?

A. Antivirus software, firewall, data encryption. B. Antivirus software, data encryption, change logs. C. Firewall, data encryption, backup procedures. D. Antivirus software, firewall, backup procedures.

Discussion 0

Correct Answer: A Vote an answer