Get IIA-CIA-Part3-3P Products Practice Material for IIA-CIA-Part3-3P Exam Question Preparation [Q96-Q118]

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Get IIA-CIA-Part3-3P Products Practice Material for IIA-CIA-Part3-3P Exam Question Preparation

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IIA IIA-CIA-Part3-3P Exam Syllabus Topics:

Topic	Details
Topic 1	Recognize the various forms and elements of contracts Describe the strategic planning process and key activities
Topic 2	Explain general concepts of managerial accounting Explain organizational behavior (individuals in organizations, groups, and how organizations behave, etc.)
Topic 3	Explain basic IT infrastructure and network concepts Identify project management techniques
Topic 4	Organizational Structure and Business Processes Infrastructure and IT Control Frameworks
Topic 5	?Recognize advanced and emerging financial accounting concepts Describe revenue cycle, current asset management activities and accounting, and supply chain management
Topic 6	Examine the risk and control implications of common business processes Appraise the risk and control implications of different organizational configuration structures
Topic 7	Describe capital budgeting, capital structure, basic taxation, and transfer pricing Recognize the application of data analytics methods in internal auditing

Q96. During an audit of the organization’s annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years. Which of the following is the most likely explanation for this increase?

Cost of raw material inventory items is decreasing.

Process to manufacture goods is more efficient.

Labor productivity to produce goods is increasing.

Write-off of inventory is increasing.

Q97. Which of the following recognized competitive strategies focuses on gaining efficiencies?

Focus

Cost leadership

Innovation

Differentiation

Q98. An employee’s mobile device used for work was stolen in a home burglary.
Which control, if already implemented by the organization, would best prevent unauthorized access to organizational data stored on the employee’s device?

Access control via biometric authentication.

Access control via security question authentication.

Access control via passcode authentication.

Access control via swipe pattern authentication.

Q99. 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.

Q100. In an organization’s established accounts payable department employees perform highly structured activities follow clearly defined procedures and have strict deadlines for performing their tasks The head of the department recently retired, and a new department head was hired To achieve the greatest benefit for this department and avoid redundancy the new leader should adopt which of the following leadership styles?

Achievement-oriented style

People-oriented style

Goal-oriented style

Task-oriented style

Q101. 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.

Q102. Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?
1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2) The IAA must assess whether the IT governance of the organization supports the organization’s strategies and objectives.
3) The IAA may assess whether the IT governance of the organization supports the organization’s strategies and objectives.
4) The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization’s strategies and objectives.

1 only

4 only

2 and 4

3 and 4

Q103. Which of the following assumptions regarding cost-volume-profit analysis is true?

When more than one type of product is sold, the sales mix changes.

The behavior of costs and revenues is inverse.

Costs are affected by changes in activity only.

Only variable costs have to be classified accurately.

Q104. Which of the following is true regarding the COSO enterprise risk management framework?

The framework categorizes an organization’s objectives to distinct, non overlapping objectives.

Control environment is one of the framework’s eight components.

The framework facilitates effective risk management, even if objectives have not been established.

The framework integrates with, but is not dependent upon, the corresponding internal control framework.

Q105. Which of the following statements about mentoring is true?
1) Mentoring can be used effectively for increasing employee retention
2) Mentoring can be used effectively in reducing employees frustration.
3) Mentoring can be used effectively for increasing organization communication.
4) Mentoring can be used effectively as a short term activity consisting of instruction and training

1 2. and 3 only.

1. 2 and 4 only

1, 3. and 4 only.

1,2. 3, and 4

Q106. Which of me following responsibilities would ordinary fall under the help desk function of an organization?

Maintenance service items such as production support

Management of infrastructure services including network management

Physical hosting of mainframes and distributed servers

End-to-end security architecture design

Q107. Which of the following statements best describes the frameworks set forth by the International Standards Organization?

Globally accepted standards for industries and processes.

Bridging the gaps among control requirements, technical issues, and business risks.

Practical guidance and benchmarks for all organizations that use information systems.

Frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.

Q108. Which of the following is a type of network in which an organization permits specific users (such as existing customers) to have access to its internal network through the Internet by building a virtual private network?

Intranet.

Extranet.

Digital subscriber line.

Broadband.

Q109. Which of the following would be a risk in the development of end-user computing (EUC) applications, compared to traditional information systems?

Management might place the same degree of reliance in reports produced by EUC applications as it does in reports produced under traditional systems development procedures.

The organization may incur higher application development and maintenance costs for EUC systems.

Since development time is typically longer for EUC applications, management may not be able to respond quickly to competitive pressures

Management may not be able to make quick and accurate decisions due to a diminished capacity to respond to managerial requests for computerized information

Q110. Which of the following statements is true regarding the roles and responsibilities associated with a corporate social responsibility (CSR) program?

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

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

The internal audit activity is responsible for ensuring that CSR principles are integrated into the organization’s policies and procedures.

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

Q111. In mergers and acquisitions, which of the following is an example of a horizontal combination?

Dairy manufacturing company taking over a large dairy farm.

A movie producer acquires movie theaters.

A petroleum processing company acquires an agro-processing firm.

A baker taking over a competitor.

Q112. Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management’s duties with regard to this model?

Ensure compliance with the model.

Identify management functions.

Identify emerging issues.

Set goals for implementation.

Q113. An organization allows employees to use mobile devices for business purposes.
Which of the following could cause decreased employee productivity in case of data loss?

Exposure of sensitive data.

Lack of data encryption.

Lack of data back up.

Malware resulting in data leakage.

Q114. According to IIA guidance, which of the following best describes the activities that occur during the conversion phase of an IT project?

Conversion of user requirements into system specifications

Conversion of user requirements into program codes

Conversion of test data into production data

Conversion of data from the old system into the new system

Q115. Which of the following is an example of an application system control?

Data values fall within a prescribed range.

Error listings are generated and promptly remediated.

Report distribution is restricted to authorized personnel.

Field amounts contain an upper or lower limit.

Q116. A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs. This is an example of which of the following?

Job enlargement.

Horizontal loading of the job.

Job rotation

Q117. 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.

Q118. Which of the following is a typical example of structured data?

Production information maintained in relational tables.

Tweets and posts of users on social media.

Photos and videos stored in hard drive catalogs.

Sales reports documented in word processing software.

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