[Q75-Q93] Try 100% Updated IIA-CIA-Part3 Exam Questions [2024] – IT Certification Exam Questions & Answers

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Try 100% Updated IIA-CIA-Part3 Exam Questions [2024]

Pass IIA-CIA-Part3 Exam – Real Questions and Answers

IIA-CIA-Part3 exam is an essential step for internal auditors who want to advance their careers and increase their value to their organizations. Passing IIA-CIA-Part3 exam demonstrates that the candidate has the necessary knowledge and skills to provide valuable insights into the business operations of their organization. It also shows that they understand the importance of risk management and can apply their knowledge to identify and mitigate risks.

QUESTION 75
An internal auditor is evaluating an organization’s business continuity management program According to HA guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?

End-to-end testing

IT systems and application walkthrough

Tabletop or boardroom-style testing

Desk check testing

QUESTION 76
Which of the following statements is true regarding change management?

The degree of risk associated with a proposed change determines whether the change request requires authorization

Program changes generally are developed and tested in the production environment.

Changes are only required by software programs

To protect the production environment, changes must be managed in a repeatable, defined, and predictable manner

QUESTION 77
In an online, real-time system, which of the following is most likely to be used as backup for an application’s master file maintained on magnetic disk?

At specified periods, the disk files are dumped to copied on) magnetic tape. A transaction log is maintained as inputs are received and processed.

A duplicate disk file is maintained and all activity is copied on magnetic tape continuously.

The grandfather-father-son technique is employed to retain disk files.

All source documents for transactions are retained.

When an application’s master file is maintained on magnetic disk in an online, real-time system, the backup procedure most likely to be used is the rollback and recovery method.
This method involves the dumping of the master file’s contents and associated data structures onto a backup file. In the event of a loss of data, the dump is used together with the transaction log or file to reconstruct the master file.

QUESTION 78
Which of the following principles is shared by both hierarchical and open organizational structures?
1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions
2. A supervisor’s span of control should not exceed seven subordinates
3. Responsibility should be accompanied by adequate authority
4. Employees at all levels should be empowered to make decisions.

1 and 3 only.

1 and 4 only.

2 and 3 only

3 and 4 only.

QUESTION 79
Refer to the exhibit.

A company’s financial balance sheet is presented below:
The company has net working capital of:

$160

$210

$350

$490

QUESTION 80
A domestic entity and a foreign entity purchased the same stock on the foreign stock exchange and held the stock for 1 year. The value of the foreign currency weakened against the domestic currency over this period. Comparing the returns of the two companies, what will be the domestic entity’s return?

Lower.

Higher.

The same.

Higher in the short-run but lower in the long-run.

The returns on the stock are presumably paid in foreign currency. Hence, the change in the value of the foreign currency relative to the domestic currency does not affect the foreign entity’s return. However, the weakening of the foreign currency reduces the amount of domestic currency it will buy, and the domestic entity’s return in domestic currency is correspondingly reduced.

QUESTION 81
An internal auditor was performing an operational audit of the purchasing and accounts payable system. The audit objective was to identify changes in processes that would improve efficiency and effectiveness. Which of the following statements support the auditor’s recommendation that electronic data interchange EDI) be implemented within a company?
I. There is a small number of transactions.
II. There is a time-sensitive just-in-time purchase environment.
III. There is a large volume of custom purchases.
IV.
There are multiple transactions with the same vendor.

I only.

II and IV only.

I and Ill.

II, Ill, and IV.

EDI is advantageous in a JIT environment because it provides the capacity for instantaneous ordering. Moreover, a JIT environment already is characterized by the close vendor-purchaser cooperation required by an EDI system. Another reason for implementing an EDI system is that the purchaser has a large volume of transactions with the same vendor(s). Otherwise. EDI may not be cost efficient.

QUESTION 82
Under the share <List A>, the par value per outstanding share will <List B>, List A List B:

Option A

Option B

Option C

Option D

A share split results in a lower par value per share because the total number of shares increases but the total par value of outstanding share does not change.

QUESTION 83
If the organization uses the traditional full cost system, the cost per unit for this product for the coming year will be:

US $5.39

US $5.44

US $6.11

US $6.95

Given that manufacturing overhead is applied on the basis of machine hours, the overhead rate is US $60 per hour $1,800.000 – 30,000) or US $.96 per unit [80 machine hours per batch x $60) – 5,000 units per batch]. Accordingly, the unit full cost is US $6.11 $5.15 unit price cost + $.96). Believing that its traditional cost system may be providing misleading information. an organization is considering an activity-based costing ABC) approach. It now employs a full cost system and has been applying its manufacturing overhead on the basis of machine hours. The organization plans on using 50.000 direct labor hours and 30,000 machine hours in the coming year. The following data show the manufacturing overhead that is budgeted.

Cost, sales, and production data for one of the organization’ s products for the coming year are as follows:

QUESTION 84
An investor has acquired an organization that has a dominant position in a mature. slew-growth Industry and consistently creates positive financial income.
Which of the following terms would the investor most likely label this investment in her portfolio?

A star

A cash cow

A question mark

A dog

QUESTION 85
An internal auditor is assessing the risks related to an organization’s mobile device policy. She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems. Which of the following types of smart device risks should the internal Auditor be most concerned about?

Compliance.

Privacy

Strategic

Physical security

QUESTION 86
Why have many European Union countries not adopted ISO 14000 environmental standards?

Following ISO 14000 standards will not reduce monitoring and inspection by regulatory agencies.

Individual European Union countries’ standards are typically more strict than ISO 14000 standards.

Regulators are permitted to use voluntary audits as a basis for punitive action.

ISO 14000 standards will not make it easier to do business across borders.

Some European countries already have environmental systems in place, and individual countries’ standards are typically more strict than the ISO 14000 standards. Furthermore, the relationship of these single-country standards with ISO 14000 is unclear.

QUESTION 87
An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?

Normalize the data,

Obtain the data

Identify the risks.

Analyze the data.

QUESTION 88
An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the dat a. Which of me following statements is true regarding this scenario?

The auditor is normalizing data in preparation for analyzing it

The auditor is analyzing the data m preparation for communicating the results

The auditor is cleaning the data in preparation for determining which processes may tie involved

The auditor is reviewing the data prior lo defining the question

QUESTION 89
Which of the following is a characteristic of using a hierarchical control structure?

Less use of policies and procedures

Less organizational commitment by employees

Less emphasis on extrinsic rewards

Less employees turnover

QUESTION 90
According to UA guidance on IT, at which of the following stages of the project life cycle would the project manager most likely address the need to coordinate project resources?

Initiation.

Planning.

Execution.

Monitoring.

QUESTION 91
A bank is developing a computer system to help evaluate loan applications. The information systems IS staff interview the bank’s mortgage underwriters to extract their knowledge and decision processes for input into the computer system. The completed system should be able to process information the same as do the underwriters and make final recommendations regarding loan decisions. This approach is called:

An expert system.

A neural network.

An intelligent agent.

Fuzzy logic.

An expert system is a knowledge-intensive computer program that captures the expertise of a human in limited domains of knowledge.

QUESTION 92
A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:

Empathetic listening.

Reframing.

Reflective listening.

Dialogue.

QUESTION 93
Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

Increasing complexity over time.

Interface with corporate systems.

Ability to meet user needs.

Hidden data columns or worksheets.

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IIA-CIA-Part3 certification exam is designed to test the skills and knowledge of internal auditors in the area of business knowledge. IIA-CIA-Part3 exam is offered by the Institute of Internal Auditors (IIA), a global organization that sets standards for the internal audit profession. The IIA-CIA-Part3 exam is one of three exams that make up the Certified Internal Auditor (CIA) designation.

IIA-CIA-Part3 Exam Questions Get Updated [2024] with Correct Answers: https://www.it-tests.com/IIA-CIA-Part3.html