1. Home
  2. IIA
  3. CIA
  4. IIA-CIA-Part3-3P
  5. CIA Exam Part Three: Business Knowledge for Internal Auditing Questions and Answers

Pass the IIA CIA IIA-CIA-Part3-3P Questions and answers with CertsForce

 IIA Exams      Go to Exam Detail      Get Premium Access
Viewing page 1 out of 15 pages
Viewing questions 1-10 out of questions
Questions # 1:

Which of the following best describes the concept of relevant cost?

Options:
A.

A future cost that is the same among alternatives.

B.

A future cost that differs among alternatives.

C.

A past cost that is the same among alternatives.

D.

A past cost that differs among alternatives.

Questions # 2:

Which of the following is false with regard to Internet connection firewalls?

Options:
A.

Firewalls can protect against computer viruses.

B.

Firewalls monitor attacks from the Internet.

C.

Firewalls provide network administrators tools to retaliate against hackers.

D.

Firewalls may be software-based or hardware-based.

Questions # 3:

Which of the following is true regarding the COSO enterprise risk management framework?

Options:
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.

Questions # 4:

Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?

Options:
A.

The auditor should focus on the audit client as a person and understand him, rather than just

concentrating on the problem.

B.

The auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.

C.

The auditor should explore alternative solutions to address the audit problem, so the audit client has options.

D.

The auditor should take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.

Questions # 5:

The main reason to establish internal controls in an organization is to:

Options:
A.

Encourage compliance with policies and procedures.

B.

Safeguard the resources of the organization.

C.

Ensure the accuracy, reliability, and timeliness of information.

D.

Provide reasonable assurance on the achievement of objectives.

Questions # 6:

Which of the following is not a barrier to effective communication?

Options:
A.

Filtering.

B.

Communication overload.

C.

Similar frames of reference.

D.

Lack of source credibility.

Questions # 7:

The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?

Options:
A.

Risk acceptance.

B.

Risk sharing.

C.

Risk avoidance.

D.

Risk reduction.

Questions # 8:

Which of the following is not a method for implementing a new application system?

Options:
A.

Direct cutover.

B.

Parallel.

C.

Pilot.

D.

Test.

Questions # 9:

Which of the following is a characteristic of an emerging industry?

Options:
A.

Established strategy of players.

B.

Low number of new firms.

C.

High unit costs.

D.

Technical expertise.

Questions # 10:

The economic order quantity for inventory is higher for an organization that has:

Options:
A.

Lower annual unit sales.

B.

Higher fixed inventory ordering costs.

C.

Higher annual carrying costs as a percentage of inventory value.

D.

A higher purchase price per unit of inventory.

Viewing page 1 out of 15 pages
Viewing questions 1-10 out of questions