Latest IIA IIA-CIA-Part3-3P Practice Test Questions, CIA Exam Part Three: Business Knowledge for Internal Auditing Exam Dumps [Q167-Q191]

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Latest IIA IIA-CIA-Part3-3P Practice Test Questions, CIA Exam Part Three: Business Knowledge for Internal Auditing Exam Dumps

Feb-2023 Pass IIA IIA-CIA-Part3-3P Exam in First Attempt Easily

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

Topic	Details
Topic 1	?Recognize advanced and emerging financial accounting concepts Describe revenue cycle, current asset management activities and accounting, and supply chain management
Topic 2	Explain basic IT infrastructure and network concepts Identify project management techniques
Topic 3	Differentiate costing systems (absorption, variable, fixed, activity-based, standard, etc.) Examine common performance measures
Topic 4	Explain disaster recovery planning site concepts Recognize the purpose and applications of IT control frameworks
Topic 5	Differentiate the various forms of user authentication and authorization controls Identify concepts and underlying principles of financial accounting
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	?Distinguish various costs (relevant and irrelevant costs, incremental costs, etc.) Organizational Objectives, Behavior, and Performance

NO.167 Which of the following statements is true regarding cybersecurity risk?

Cybersecurity risks are identical across all organizations regardless of industry

Installation of antivirus and malware software prevents cybersecurity risks

Deployment of proper cybersecurity measures assures business success

Information value extends the emergence of cybersecurity risks

NO.168 An internal auditor computed that one of the organization’s accounting divisions is processing 30 travel reports per hour while another accounting division is processing 22 travel reports per hour.
Which of the following efficiency measures did the internal auditor most likely employ?

Asset efficiency rate.

Productivity rate.

Resource utilization rate.

Operating rate.

NO.169 An organization is projecting sales of 100,000 units, at a unit price of $12. Unit variable costs are $7. If fixed costs are $350,000, what is the projected total contribution margin?

$350,000

$500,000

$850,000

$1,200,000

NO.170 An investor has acquired an organization that has a dominant position in a mature, slow-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

NO.171 Organizational activities that complement each other and create a competitive advantage are called a:

Merger.

Strategic fit.

Joint venture.

Strategic goal.

NO.172 Organizations use matrix management to accomplish which of the following?

To improve the chain of command.

To strengthen corporate headquarters.

To focus better on a single market.

To increase lateral communication.

NO.173 Which of the following is an example of internal auditors applying data mining techniques for exploratory purposes?

Internal auditors perform a systems-focused analysis to review relevant controls.

Internal auditors perform a risk assessment to identify potential audit subjects as input for the annual internal audit plan.

Internal auditors perform reconciliation procedures to support an external audit of financial reporting.

Internal auditors test IT general controls with regard to operating effectiveness versus design.

NO.174 Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?

Lack of flexibility.

Incompatibility with client/server technology.

Employee resistance to change.

Inadequate technical support.

NO.175 Which of the following steps should an internal auditor take during an audit of an organization’s business continuity plans?
1) Evaluate the business continuity plans for adequacy and currency.
2) Prepare a business impact analysis regarding the loss of critical business.
3) Identify key personnel who will be required to implement the plans.
4) Identify and prioritize the resources required to support critical business processes.

1 only

2 and 4 only

1, 3, and 4 only

1, 2, 3, and 4

NO.176 Which of the following is an example of a phishing attack?

An employee receives an email that appears to be from the organization’s bank, though it is not. The employee replies to the email and sends the requested confidential information.

An organization’s website has been hacked. The hacker added political content that is not consistent with the organization’s views.

An organization’s systems have been compromised by malicious software. The software locks the organization’s operating system until d ransom is paid.

An organization’s communication systems have been intercepted. A communication session is controlled by an unauthorized third party.

NO.177 International marketing activities often begin with:

Standardization.

Global marketing.

Limited exporting.

Domestic marketing.

NO.178 Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?

A time-sensitive just-in-time purchase environment.

A large volume of custom purchases.

A variable volume sensitive to material cost.

A currently inefficient purchasing process.

NO.179 At a manufacturing plant, how would using Internet of Things during the production process benefit the organization?

It would help detect cyberattacks in a more timely fashion.

It would assist in ensuring that data integrity is maintained.

It would assist in securing sensitive data.

It would provide the ability to monitor in real-time.

NO.180 According to IIA guidance on IT. which of the following plans would pair the identification of critical business processes with recovery time objectives?

The business continuity management charter.

The business continuity risk assessment plan

The business impact analysis plan

The business case for business continuity planning

NO.181 Which of the following factors is most responsible for the increasing risk that unauthorized parties may obtain or tamper with personal data?

The lack of legal and industry frameworks on privacy.

The absence of generally accepted privacy principles.

The rapid growth and evolution of technology.

The legislated need to retain sensitive personal information.

NO.182 Which of the following statements is true regarding cost-volume-profit analysis?

Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.

Breakeven point is the amount of units sold to cover variable costs.

Breakeven occurs when the contribution margin covers fixed costs

Following breakeven, net operating income will increase by the excess of fixed costs less the variable costs per units sold

NO.183 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?

Review and acquire the external audit service.

Assess the appraisal and actuarial services.

Determine the selection criteria.

Identify regulatory requirements to be considered.

NO.184 When using cost-volume-profit analysts which of the following will increase operating income once the break-even point has been reached?

Fixed costs per unit for each additional unit sold

Variable costs per unit for each additional unit sold

Contribution margin per unit for each additional unit sold

Gross margin per unit for each additional unit sold

NO.185 Which of the following examples demonstrates that the internal audit activity uses descriptive analytics in its engagements?

An internal auditor analyzed electricity production and sales interim reports and compiled a risk assessment.

An internal auditor extracted sales data to a spreadsheet and applied judgmental analysis for sampling.

An internal auditor classified solar panel sales by region and discovered unsuccessful sales representatives.

An internal auditor broke down a complex process into smaller pieces to make it more understandable.

NO.186 The following transactions and events occurred during the year:
– $300,000 of raw materials were purchased, of which $20,000 were returned because of defects
– $600,000 of direct labor costs were incurred.
– S750.000 of manufacturing overhead costs were incurred.
What is the organization’s cost of goods sold for the year?

$1.480.000

$1 500 000

$1,610.000

$1650 000

NO.187 Which of the following types of budgets will best provide the basis for evaluating the organization’s performance?

Budgeted income statement.

Selling and administrative expense budget.

Budgeted balance sheet.

Cash budget.

NO.188 Which of the following cybersecurity-related activities is most likely to be performed by the second line of defense?

Deploy intrusion detection systems and conduct penetration testing

Administer security procedures, training, and testing.

Monitor incidents, key risk indicators, and remediation

implement vulnerability management with internal and external scans.

NO.189 The cost to enter a foreign market would be highest in which of the following methods of global expansion?

Joint ventures.

Licensing.

Exporting.

Overseas production.

NO.190 When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?
1) Management’s tolerance for specific risks.
2) The cost versus benefit of implementing a control.
3) Whether a control can mitigate multiple risks.
4) The ability to test the effectiveness of the control.

1, 2, and 3

1, 2, and 4

1, 3, and 4

2, 3, and 4

NO.191 Which of the following statements is true regarding the capital budgeting procedure known as discounted payback period?

It calculates the overall value of a project

It ignores the time value of money

It calculates the time a project takes to break even.

It begins at time zero for the project.

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