Real IIA IIA-CIA-Part3-3P Exam Questions [Updated 2023]
IIA-CIA-Part3-3P Exam Dumps Pass with Updated 2023 CIA Exam Part Three: Business Knowledge for Internal Auditing
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NEW QUESTION 211
When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?
- A. Assess the appraisal and actuarial services.
- B. Determine the selection criteria.
- C. Review and acquire the external audit service.
- D. Identify regulatory requirements to be considered.
Answer: D
NEW QUESTION 212
A manager who is authorized to make purchases up to a certain dollar amount approves the set-up of a fictitious vendor and subsequently initiates purchase orders.
Which of the following controls would best address this risk?
- A. Require submission of a conflict-of-interest declaration.
- B. Perform a regular review of the vendor master file.
- C. Establish separate vendor creation and approval teams.
- D. Develop and distribute a code of conduct that prohibits conflicts of interest.
Answer: D
NEW QUESTION 213
An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?
- A. 7 percent simple interest with a 10 percent compensating balance.
- B. 7 percent compounding interest.
- C. 7 percent simple interest paid at the end of each year.
- D. 7 percent discount interest.
Answer: C
NEW QUESTION 214
Which of the following statements is true regarding the risks associated with the increased use of smart devices at work?
- A. The Bluetooth and WI-FI features of smart devices enhance the security of data while in transit
- B. When the user fads to perform jailbreaking or rooting, data security and privacy risks we increased
- C. Due to their small size and portability smart devices and their associated data are typically less susceptible to physical loss
- D. The global positioning system (GPS) capability of smart devices could be exploited to plan cyberattacks
Answer: D
NEW QUESTION 215
Which stage in the industry life cycle is characterized by many different product variations?
- A. Decline.
- B. Growth.
- C. Introduction.
- D. Maturity.
Answer: C
NEW QUESTION 216
An organization had three large centralized divisions: one that received customer orders for service work; one that scheduled the service work at customer locations; and one that answered customer calls about service problems. These three divisions were restructured into seven regional groups, each of which performed all three functions. One advantage of this restructuring would be:
- A. Better internal controls.
- B. Improved work flow.
- C. Increased specialization.
- D. Greater economies of scale.
Answer: B
NEW QUESTION 217
An internal auditor is investigating a potential fraudulent activity. What is the first test the auditor should perform on the transaction data under scrutiny?
- A. Digital analysis for statistically unlikely occurrences that may indicate system tampering.
- B. Calculation of statistical parameters to identify outliers requiring further scrutiny.
- C. Detailed review of the data contents to strategize the best analytical techniques.
- D. Verification of the completeness and integrity of the obtained data.
Answer: D
NEW QUESTION 218
Which of the following practices circumvents administrative restrictions on smart devices, thereby increasing data security risks?
- A. Rooting.
- B. Eavesdropping.
- C. Man in the middle.
- D. Session hijacking.
Answer: A
NEW QUESTION 219
Which of the following characteristics is most important specifically for a global manager to possess in order to be successful?
- A. Emotional intelligence
- B. Cultural intelligence
- C. Understanding of uncertainty avoidance differences
- D. Knowledge of different languages.
Answer: B
NEW QUESTION 220
According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?
- A. To ensure that tests contribute to improvement of the program.
- B. To ensure that deficiencies identified by the audit are promptly addressed.
- C. To identify and address potential security weaknesses within the system.
- D. To ensure that adequate controls exist to prevent any significant business interruptions.
Answer: A
NEW QUESTION 221
The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:
- A. Test marketing
- B. Segmentation
- C. Experimentation
- D. Positioning
Answer: A
NEW QUESTION 222
According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?
1) Every employee generally has a responsibility for ensuring the success of CSR objectives.
2) The board has overall responsibility for the effectiveness of internal control processes associated with CSR.
3) Public reporting on the CSR governance process is expected.
4) Organizations generally have flexibility regarding what is included in a CSR program.
- A. 1, 2, and 3 only
- B. 2, 3, and 4 only
- C. 1, 2, and 4 only
- D. 1, 3, and 4 only
Answer: C
NEW QUESTION 223
According to Porter, which of the following is associated with fragmented industries?
- A. Weak entrance barriers.
- B. Significant scale economies.
- C. Strong negotiation power with suppliers.
- D. Steep experience curve.
Answer: A
NEW QUESTION 224
A restaurant deeded to expand its business to include delivery services rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?
- A. Differentiation
- B. Diversification
- C. Vertical integration
- D. Risk avoidance
Answer: C
NEW QUESTION 225
Which of the following statements is true regarding the relationship between an individual's average tax rate and marginal tax rate?
- A. In a regressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.
- B. In a regressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.
- C. In a progressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.
- D. In a progressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.
Answer: D
NEW QUESTION 226
In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners.
Which of the following network types is illustrated by this scenario?
- A. A local area network.
- B. A wide area network.
- C. A value-added network.
- D. A metropolitan area network.
Answer: C
NEW QUESTION 227
An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?
- A. 100 days.
- B. 110 days.
- C. 26 days.
- D. 90 days.
Answer: D
NEW QUESTION 228
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