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IIA-CIA-Part3-3P Practice Questions

Question # 1
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.


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


Question # 2
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 # 3
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.


Question # 4
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?
A. Ensure compliance with the model.
B. Identify management functions.
C. Identify emerging issues.
D. Set goals for implementation.


A. Ensure compliance with the model.


Question # 5
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
A. Identifying the processes at the activity level.
B. Analyzing the organization's strategic plan where the business processes are defined.
C. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.
D. Identifying the risks affecting the organization, the objectives, and then the processes concerned.


C. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.


Question # 6
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?
A. Cost of raw material inventory items is decreasing.
B. Process to manufacture goods is more efficient.
C. Labor productivity to produce goods is increasing.
D. Write-off of inventory is increasing.


D. Write-off of inventory is increasing.


Question # 7
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 # 8
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.


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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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