[Dec 05, 2023] Pass IIA CIA IIA-CIA-Part3-3P Exam With 487 Questions [Q214-Q236]

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[Dec 05, 2023] Pass IIA CIA IIA-CIA-Part3-3P Exam With 487 Questions

Ultimate Guide to Prepare Free IIA IIA-CIA-Part3-3P Exam Questions and Answer

IIA-CIA-Part3-3P certification exam is a computer-based exam that consists of 100 multiple-choice questions. Candidates are given three hours to complete the exam, and they must score a minimum of 600 out of 800 to pass. IIA-CIA-Part3-3P exam is administered by Pearson VUE, and candidates can take the exam at any of their testing centers worldwide.

The CIA Exam Part Three: Business Knowledge for Internal Auditing is a comprehensive exam that covers a wide range of topics related to internal auditing. Some of the key areas covered in IIA-CIA-Part3-3P exam include business acumen, financial management, global business environments, information technology, and risk management. By passing IIA-CIA-Part3-3P exam, individuals can demonstrate their knowledge and understanding of these topics, which can be valuable in their careers as internal auditors.

Q214. Which of me following application controls is the most dependent on the password owner?

Password selection

Password aging

Password lockout

Password rotation

Q215. According to MA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

Report identifying data that is outside of system parameters

Report identifying general ledger transactions by time and individual

Report comparing processing results with original input

Report confirming that the general ledger data was processed without error.

Q216. Which of the following is a cybersecurity monitoring activity that involves assessing the strength of an organization’s IT protection?

Boundary defense

Malware defense

Penetration tests

Wireless access controls

Q217. Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

Borrowers may not sign all required mortgage loan documentation.

Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.

The bank’s loan documentation may not meet the government’s disclosure requirements.

Loan officers may override the lending criteria established by senior management.

Q218. When would a contract be closed out?

When there is a force majeure.

When the termination clause is enacted.

When there’s a dispute between the contracting parties.

When all contractual obligations have been discharged.

Q219. When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

Direct product costs

Indirect product costs

Direct period costs

Indirect period costs.

Q220. An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization’s needs, in order to quickly recover operational capability in the event of a disaster.
Which of the following best describes this approach to disaster recovery planning?

Outsourced recovery plan.

Storage area network recovery plan.

Cold recovery plan.

Hot recovery plan.

Q221. An internal auditor reviewed Finance Department records to obtain a list of current vendor addresses The auditor then compared the vendor addresses to a record of employee addresses maintained by the Payroll Department Which of the following types of data analysis did the auditor perform?

Duplicate testing.

Gap analysis

Classification

Joining data sources

Q222. A remote location contains a data center with hardware available to support critical production systems as required in the recovery plan IT personnel periodically test and update systems at the data center. This is an example of which of the following recovery solutions?

Cold recovery plan

Critical recovery plan

Warm recovery plan

Tested recovery plan

Q223. Which of the following IT-related activities is most commonly performed by the second line of defense?

Block unauthorized traffic.

Encrypt data.

Review disaster recovery test results.

Provide independent assessment of IT security.

Q224. Which of the following is a limiting factor for capacity expansion?

Government pressure on organizations to increase or maintain employment.

Production orientation of management.

Lack of credible market leader in the industry.

Company diversification.

Q225. Which of the following is a characteristic of big data?

Big data is often structured.

Big data is often generated slowly and is highly variable.

Big data analytic results often need to be visualized.

Big data comes from internal sources kept in data warehouses.

Q226. An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?

Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters.

Orders, commands and advice are sent to the subsidiaries from headquarters.

People of local nationality are developed for the best positions within their own country

There is a significant amount of collaboration between headquarters and subsidiaries.

Q227. 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.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

Q228. The greatest advantage of functional departmentalization is that it:

Facilitates communication between primary functions.

Helps to focus on the achievement of organizational goals.

Provides for efficient use of specialized knowledge .

Accommodates geographically dispersed companies

Q229. Which of the following options correctly defines a transmission control protocol/Internet protocol (TCP/IP)?

System software that acts as an interface between a user and a computer.

A standardized set of guidelines that facilitates communication between computers on different networks.

System software that translates hypertext markup language to allow users to view a remote webpage.

A network of servers used to control a variety of mission-critical operations.

Q230. The management of working capital is most crucial for which of the following aspects of business?

Efficiency.

Liquidity.

Solvency.

Profitability.

Q231. An organization produces two products, X and Y.
The materials used for the production of both products are limited to 500 kilograms (kg) per month.
All other resources are unlimited and their costs are fixed. Individual product details are as follows:
Product X
Product Y
Selling price per unit
$10
$13
Materials per unit (at $1/kg)
2 kg
6 kg
Monthly demand
100 units
120 units
In order to maximize profit, how much of product Y should the organization produce each month?

100 units.

120 units.

60 units.

50 units.

Q232. Which of the following is likely to occur when an organization decides to adopt a decentralized organizational structure?

A slower response to external change.

More burden on higher-level managers.

Less use of employees’ true skills and abilities.

Less controlled decision making.

Q233. Which of the following statements is correct regarding risk analysis?

The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

The highest risk assessment should always be assigned to the area with the largest potential loss.

The highest risk assessment should always be assigned to the area with the highest probability of occurrence.

Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Q234. Which of the following re a result of implementing an e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and billing?

Higher cash flow and treasury balances

Higher inventory balances

Higher accounts receivable

Higher accounts payable

Q235. A multinational organization involved in online business has planned to set up a help desk service. Which of the following best describes the role performed by the help desk?

Monitoring access to the online database.

Backing up and maintaining archived data.

Responding to customer inquiries.

Maintaining and assuring network security.

Q236. The mobility of personal smart devices significantly increases which of the following risks?

Data integrity risks

Compliance risks.

Physical security risks

Privacy risks

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