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IIA-CIA-Part3-3P Practice Questions

Question # 1
Which of the following types of analytics would be used by an organization to examine metrics by business units and identity the most profitable business units?
A. Detailed analytics
B. Predictive analytics
C. Diagnostic analytics
D. Prescriptive analytics


D. Prescriptive analytics


Question # 2
Which of the following roles would be least appropriate for the internal audit activity to undertake with regard to an organization's corporate social responsibility (CSR) program?
A. Consult on project design and implementation of the CSR program.
B. Serve as an advisor on internal controls related to CSR.
C. Identify and prioritize the CSR issues that are important to the organization.
D. Evaluate the effectiveness of the organization's CSR efforts.


C. Identify and prioritize the CSR issues that are important to the organization.


Question # 3
An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?
A. Develop and test the organization's disaster recovery plan.
B. Install and test fire detection and suppression equipment.
C. Restrict access to tangible IT resources.
D. Ensure that at least one developer has access to both systems and operations.


D. Ensure that at least one developer has access to both systems and operations.


Question # 4
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
A. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
B. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
C. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
D. 50 percent of total organizational cost has been allocated on a volume basis.


D. 50 percent of total organizational cost has been allocated on a volume basis.


Question # 5
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.

A. 1 only
B. 4 only
C. 2 and 4
D. 3 and 4


C. 2 and 4


Question # 6
Which of the following is true regarding the COSO enterprise risk management framework?
A. The framework categorizes an organization's objectives to distinct, non overlapping objectives.
B. Control environment is one of the framework's eight components.
C. The framework facilitates effective risk management, even if objectives have not been established.
D. The framework integrates with, but is not dependent upon, the corresponding internal control framework.


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


Question # 7
Which mindset promotes the most comprehensive risk management strategy?
A. Increase shareholder value.
B. Maximize market share.
C. Improve operational efficiency.
D. Mitigate losses.


A. Increase shareholder value.


Question # 8
Organizations use matrix management to accomplish which of the following?
A. To improve the chain of command.
B. To strengthen corporate headquarters.
C. To focus better on a single market.
D. To increase lateral communication.


D. To increase lateral communication.


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IIA IIA-CIA-Part3-3P Exam Dumps

Exam Name: CIA Exam Part Three: Business Knowledge for Internal Auditing
Certification Name: CIA

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