IIA-CIA-Part3 sample questions

Question 1

What must be monitored in order to manage risk of consumer product inventory obsolescence? 1. Inventory balances. 2. Market share forecasts. 3. Sales returns. 4. Sales trends.

Accepted Answer

1 and 4 only

Answer

1 only

Answer

4 only

Answer

1,2, and 3 only

Question 2

Which of the following are typical responsibilities for operational management within a risk management program? 1. Implementing corrective actions to a ddress process deficiencies. 2. Identifying shifts in the organization's risk management environment. 3. Providing guidance and training on risk management processes. 4. Assessing the impact of mitigation strategies and activities.

Accepted Answer

1 and 4 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

3 and 4 only

Question 3

According to HA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?

Accepted Answer

To ensure that tests contribute to improvement of the program.

Answer

To ensure that adequate controls exist to prevent any significant business interruptions.

Answer

To identify and address potential security weaknesses within the system.

Answer

To ensure that deficiencies identified by the audit are promptly addressed.

Question 4

According to HA guidance, which of the following statements is true with regard to workstation computers that access company information stored on the network?

Accepted Answer

Cybersecurity issues can be controlled at an enterprise level, making workstation level controls redundant.

Answer

Individual workstation computer controls are not as important as companywide server controls.

Answer

Particular attention should be paid to housing workstations away from environmental hazards.

Answer

With security risks near an all-time high, workstations should not be connected to the company network.

Question 5

Which of the following statements regarding program change management is not correct?

Accepted Answer

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

Answer

The goal of the change management process is to sustain and improve organizational operations.

Answer

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

Answer

All changes should be tested in a non-production environment before migrating to the production environment.

Question 6

If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?

Accepted Answer

Customer departmentalization.

Answer

Product departmentalization.

Answer

Process departmentalization.

Answer

Functional departmentalization.

Question 7

Which of the following is a characteristic of just-in-time inventory management systems?

Accepted Answer

They rely heavily on high quality materials.

Answer

Users determine the optimal level of safety stocks.

Answer

They are applicable only to large organizations.

Answer

They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.

Question 8

Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

Accepted Answer

Inspection.

Answer

Observation.

Answer

Original cost.

Answer

Vouching.

Question 9

Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

Accepted Answer

The cost of goods sold for the period will be overstated.

Answer

The cost of goods sold for the period will be understated.

Answer

The net income for the period will be understated.

Answer

There will be no effect on the cost of goods sold or the net income for the period.

Question 10

When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

Accepted Answer

Each good is produced by the nation that has the lowest opportunity cost for that good.

Answer

Each nation's total imports approximately equal its total exports.

Answer

Goods that contribute to a nation's balance-of-payments deficit are no longer imported.

Answer

International trade is unrestricted and tariffs are not imposed.

IIA-CIA-Part3 Sample Questions & Answers

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IIA-CIA-Part3 Sample Questions & Answers

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