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IIA-CIA-Part3 Questions and Answers

Question # 6

At one organization, the specific terms of a contract require both the promisor and promisee to sign the contract in the presence of an independent witness. What is the primary role to the witness to these signatures?

A.

A witness verifies the quantities of the copies signed.

B.

A witness verifies that the contract was signed with the free consent of the promisor and promisee.

C.

A witness ensures the completeness of the contract between the promisor and promisee.

D.

A witness validates that the signatures on the contract were signed by the promisor and promisee.

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Question # 7

Employees at an events organization use a particular technique to solve problems and improve processes. The technique consists of five steps: define, measure, analyze,

improve, and control. Which of the following best describes this approach?

A.

Six Sigma,

B.

Quality circle.

C.

Value chain analysis.

D.

Theory of constraints.

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Question # 8

According to IIA guidance on IT, which of the following controls the routing of data packets to link computers?

A.

Operating system

B.

Control environment

C.

Network.

D.

Application program code

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Question # 9

Which of the following physical access control is most likely to be based on ’’something you have" concept?

A.

A retina characteristics reader

B.

A P3M code reader

C.

A card-key scanner

D.

A fingerprint scanner

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Question # 10

Which of the following lists best describes the classification of manufacturing costs?

A.

Direct materials, indirect materials, raw materials.

B.

Overhead costs, direct labor, direct materials.

C.

Direct materials, direct labor, depreciation on factory buildings.

D.

Raw materials, factory employees' wages, production selling expenses.

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Question # 11

Which of the following statements is true regarding data backup?

A.

System backups should always be performed real time.

B.

Backups should be stored in a secured location onsite for easy access.

C.

The tape rotation schedule affects how long data is retained

D.

Backup media should be restored only m case of a hardware or software failure

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Question # 12

A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager. Which of the following organizational structures does this situation represent?

A.

Functional departmentalization.

B.

Product departmentalization

C.

Matrix organization.

D.

Divisional organization

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Question # 13

Which of the following would be a concern related to the authorization controls utilized for a system?

A.

Users can only see certain screens in the system.

B.

Users are making frequent password change requests.

C.

Users Input Incorrect passwords and get denied system access

D.

Users are all permitted uniform access to the system.

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Question # 14

An organization's board of directors is particularly focused on positioning, the organization as a leader in the industry and beating the competition. Which of the following strategies offers the greatest alignment with the board's focus?

A.

Divesting product lines expected to have negative profitability.

B.

Increasing the diversity of strategic business units.

C.

Increasing investment in research and development for a new product.

D.

Relocating the organization's manufacturing to another country.

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Question # 15

For employees, the primary value of implementing job enrichment is which of the following?

A.

Validation of the achievement of their goals anti objectives

B.

Increased knowledge through the performance of additional tasks

C.

Support for personal growth and a meaningful work experience

D.

An increased opportunity to manage better the work done by their subordinates

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Question # 16

An organization has 10,000 units of a defect item in stock, per unit, market price is $10$; production cost is $4; and defect selling price is $5. What is the carrying amount (inventory value) of defects at your end?

A.

$0

B.

$4,000

C.

$5,000

D.

$10,000

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Question # 17

An organization has instituted a bring-your-own-device (BYOD) work environment. Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?

A.

Limit the use of the employee devices for personal use to mitigate the risk of exposure to organizational data.

B.

Ensure that relevant access to key applications is strictly controlled through an approval and review process.

C.

Institute detection and authentication controls for all devices used for network connectivity and data storage.

D.

Use management software scan and then prompt parch reminders when devices connect to the network

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Question # 18

Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?

A.

A list of trustworthy, good traffic and a list of unauthorized, blocked traffic.

B.

Monitoring for vulnerabilities based on industry intelligence.

C.

Comprehensive service level agreements with vendors.

D.

Firewall and other network perimeter protection tools.

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Question # 19

An internal auditor is reviewing results from software development integration testing. What is the purpose of integration testing?

A.

To verify that the application meets stated user requirements.

B.

To verify that standalone programs match code specifications.

C.

To verify that the application would work appropriately for the intended number of users.

D.

To verify that all software and hardware components work together as intended.

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Question # 20

According to Herzberg's Two-Factor Theory of Motivation, which of the following factors arc mentioned most often by satisfied employees?

A.

Salary and status

B.

Responsibility and advancement

C.

Work conditions and security

D.

Peer relationships and personal life

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Question # 21

An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two. Which of the following could be the reason for the decline in the net profit margin for year two?

A.

Cost of sales increased relative to sales.

B.

Total sales increased relative to expenses.

C.

The organization had a higher dividend payout rate in year two.

D.

The government increased the corporate tax rate

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Question # 22

Which of the following is improved by the use of smart devices?

A.

Version control

B.

Privacy

C.

Portability

D.

Secure authentication

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Question # 23

Which of the following best describes a transformational leader, as opposed to a transactional leader?

A.

The leader searches for deviations from the rules and standards and intervenes when deviations exist.

B.

The leader intervenes only when performance standards are not met.

C.

The leader intervenes to communicate high expectations.

D.

The leader does not intervene to promote problem-solving

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Question # 24

An organization is considering outsourcing its IT services, and the internal auditor as assessing the related risks. The auditor grouped the related risks into three categories;

- Risks specific to the organization itself.

- Risks specific to the service provider.

- Risks shared by both the organization and the service provider

Which of the following risks should the auditor classify as specific to the service provider?

A.

Unexpected increases in outsourcing costs.

B.

Loss of data privacy.

C.

Inadequate staffing.

D.

Violation of contractual terms.

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Question # 25

Which of the following controls would be most efficient to protect business data from corruption and errors?

A.

Controls to ensure data is unable to be accessed without authorization.

B.

Controls to calculate batch totals to identify an error before approval.

C.

Controls to encrypt the data so that corruption is likely ineffective.

D.

Controls to quickly identify malicious intrusion attempts.

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Question # 26

Which of the following job design techniques would most likely be used to increase employee motivation through job responsibility and recognition?

A.

Job complicating

B.

Job rotation

C.

Job enrichment

D.

Job enlargement

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Question # 27

According to IIA guidance, which of the following statements is true regarding analytical procedures?

A.

Data relationships are assumed to exist and to continue where no known conflicting conditions exist.

B.

Analytical procedures are intended primarily to ensure the accuracy of the information being examined.

C.

Data relationships cannot include comparisons between operational and statistical data

D.

Analytical procedures can be used to identify unexpected differences, but cannot be used to identify the absence of differences

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Question # 28

What is the primary risk associated with an organization adopting a decentralized structure?

A.

Inability to adapt.

B.

Greater costs of control function.

C.

Inconsistency in decision making.

D.

Lack of resilience.

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Question # 29

An organization decided to reorganize into a flatter structure. Which of the following changes would be expected with this new structure?

A.

Lower costs.

B.

Slower decision making at the senior executive level.

C.

Limited creative freedom in lower-level managers.

D.

Senior-level executives more focused on short-term, routine decision making

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Question # 30

Which of the following best describes owner's equity?

A.

Assets minus liabilities.

B.

Total assets.

C.

Total liabilities.

D.

Owners contribution plus drawings.

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Question # 31

According to IIA guidance on IT, which of the following best describes a situation where data backup plans exist to ensure that critical data can be restored at some point in the future, but recovery and restore processes have not been defined?

A.

Hot recovery plan

B.

Warm recovery plan

C.

Cold recovery plan

D.

Absence of recovery plan

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Question # 32

Which of the following is true of bond financing, compared to common stock, when alJ other variables are equal?

A.

Lower shareholder control

B.

lower indebtedness

C.

Higher company earnings per share.

D.

Higher overall company earnings

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Question # 33

A bond that matures after one year has a face value of S250,000 and a coupon of $30,000. if the market price of the bond is 5265,000, which of the following would be the market interest rate?

A.

Less than 12 percent.

B.

12 percent.

C.

Between 12.01 percent and 12.50 percent.

D.

More than 12 50 percent.

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Question # 34

Which of the following is a primary driver behind the creation and prloritteation of new strategic Initiatives established by an organization?

A.

Risk tolerance

B.

Performance

C.

Threats and opportunities

D.

Governance

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Question # 35

An organization and its trading partner rely on a computer-to-computer exchange of digital business documents. Which of the following best describes this scenario?

A.

Use of a central processing unit

B.

Use of a database management system

C.

Use of a local area network

D.

Use of electronic data Interchange

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Question # 36

The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity's (lAArs) processes. He would like to reduce the time to complete audits and improve client ratings of the IAA. Which of the following staffing approaches is the CAE most likely lo select?

A.

Assign a team with a trained audit manager to plan each audit and distribute field work tasks to various staff auditors.

B.

Assign a team of personnel who have different specialties to each audit and empower Team members to participate fully in key decisions

C.

Assign a team to each audit, designate a single person to be responsible for each phase of the audit, and limit decision making outside of their area of responsibility.

D.

Assign a team of personnel who have similar specialties to specific engagements that would benefit from those specialties and limit Key decisions to the senior person.

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Question # 37

What is the primary purpose of an Integrity control?

A.

To ensure data processing is complete, accurate, and authorized.

B.

To ensure data being processed remains consistent and intact.

C.

To monitor the effectiveness of other controls

D.

To ensure the output aligns with the intended result.

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Question # 38

According to IIA guidance on IT, which of the following best describes a logical access control?

A.

Require complex passwords to be established and changed quarterly

B.

Require swipe cards to control entry into secure data centers.

C.

Monitor access to the data center with closed circuit camera surveillance.

D.

Maintain current role definitions to ensure appropriate segregation of duties

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Question # 39

Which of the following risks would Involve individuals attacking an oil company's IT system as a sign of solidarity against drilling in a local area?

A.

Tampering

B.

Hacking

C.

Phishing

D.

Piracy

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