IIA IIA-CIA-Part3-3P Exam Questions Free Practice Test

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Questions # 31:

Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management's duties with regard to this model?

Options:

Ensure compliance with the model.

Identify management functions.

Identify emerging issues.

Set goals for implementation.

Questions # 32:

According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time?

Options:

Process element.

Key principles.

Maturity model.

Assurance.

Questions # 33:

A capital investment project will have a higher net present value, everything else being equal, if it has:

Options:

A higher initial investment level.

A higher discount rate.

Cash inflows that are larger in the later years of the life of the project.

Cash inflows that are larger in the earlier years of the life of the project.

Questions # 34:

Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?

Options:

Promote closer linkage between organizational strategy and information.

Provide users with greater online access to information systems.

Enhance the functionality of application systems.

Expand the use of automated controls.

Questions # 35:

Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

Options:

Both the key used to encrypt the data and the key used to decrypt the data are made public.

The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

Both the key used to encrypt the data and the key used to decrypt the data are made private.

Questions # 36:

An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

Options:

The total liabilities and total stockholder equity both increased.

The total liabilities and total stockholder equity both decreased.

The total liabilities decreased, and the total stockholder equity increased.

The total liabilities increased, and the total stockholder equity decreased.

Questions # 37:

Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?

Options:

Decentralized organizations are more focused on organizational goals.

Decentralized organizations streamline organizational structure.

Decentralized organizations tend to be less expensive to operate.

Decentralized organizations tend to be more responsive to market changes.

Questions # 38:

Which of the following strategies is most appropriate for an industry that is in decline?

Options:

Invest in marketing.

Invest in research and development.

Control costs.

Shift toward mass production.

Questions # 39:

Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

Options:

Times interest earned, return on assets, and inventory turnover.

Accounts receivable turnover, inventory turnover in days, and the current ratio.

Accounts receivable turnover, return on assets, and the current ratio.

Inventory turnover in days, the current ratio, and return on equity.

Questions # 40:

Which of the following best describes an objective for an audit of an environmental management system?

Options:

To assess whether an annual control review is necessary.

To determine conformance with requirements and agreements.

To evaluate executive management oversight.

To promote environmental awareness.

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