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 IIA-CIA-Part3-3P Dumps with Practice Exam Questions Answers

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IIA-CIA-Part3-3P Questions and Answers

Question # 1

A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

A.

Develop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.

B.

Adopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.

C.

Involve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.

D.

Develop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.

Question # 2

Which of the following statements is true regarding the roles and responsibilities associated with a corporate social responsibility (CSR) program?

A.

The board has overall responsibility for the internal control processes associated with the CSR program.

B.

Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with the CSR program.

C.

The internal audit activity is responsible for ensuring that CSR principles are integrated into the

organization's policies and procedures.

D.

Every employee has a responsibility for ensuring the success of the organization's CSR objectives.

Question # 3

According to Porter's model of competitive strategy, which of the following is a generic strategy?

1 Differentiation.

2) Competitive advantage.

3) Focused differentiation.

4) Cost focus.

A.

2 only

B.

3 and 4 only

C.

1, 3, and 4 only

D.

1, 2, 3, and 4

Question # 4

An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

A.

Lack of awareness of the state of processing.

B.

Increased cost and complexity of network traffic.

C.

Interference of the mirrored data with the original source data.

D.

Confusion about where customer data are stored.

Question # 5

When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?

1) Management’s tolerance for specific risks.

2) The cost versus benefit of implementing a control.

3) Whether a control can mitigate multiple risks.

4) The ability to test the effectiveness of the control.

A.

1, 2, and 3

B.

1, 2, and 4

C.

1, 3, and 4

D.

2, 3, and 4

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