IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 181:

  If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?

  A. Conform with all other parts of The IIA's Standards and provide appropriate disclosures.

  B. Conform with all other parts of The IIA's Standards; there is no need to provide appropriate disclosures.

  C. Continue the engagement without conforming with the other parts of The IIA's Standards.

  D. Withdraw from the engagement.

  Correct Answer: A

• Question 182:

  Which of the following is a key characteristic of a zero-based budget?

  A. A zero-based budget provides estimates of costs that would be incurred under different levels of activity.

  B. A zero-based budget maintains focus on the budgeting process.

  C. A zero-based budget is prepared each year and requires each item of expenditure to be justified.

  D. A zero-based budget uses input from lower-level and middle-level managers to formulate budget plans.

  Correct Answer: C

• Question 183:

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

  A. Observation.

  B. Inspection.

  C. Original cost.

  D. Vouching.

  Correct Answer: B

• Question 184:

  Refer to the exhibit.

  

  If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?

  A. The "Funds Needed" line will remain pointed upward, but will become less steep.

  B. The "Funds Needed" line will remain pointed upward, but will become more steep.

  C. The "Funds Needed" line will point downward with a minimal slope.

  D. The "Funds Needed" line will point downward with an extreme slope.

  Correct Answer: B

• Question 185:

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

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

  B. To identify and address potential security weaknesses within the system.

  C. To ensure that tests contribute to improvement of the program.

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

  Correct Answer: C

• Question 186:

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

  A. Increasing complexity over time .

  B. Interface with corporate systems.

  C. Ability to meet user needs.

  D. Hidden data columns or worksheets.

  Correct Answer: C

• Question 187:

  At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?

  A. Prior to testing the new application.

  B. During testing of the new application.

  C. During implementation of the new application.

  D. During maintenance of the new application.

  Correct Answer: A

• Question 188:

  Which of the following are typical audit considerations for a review of authentication?

  1.

  Authentication policies and evaluation of controls transactions.

  2.

  Management of passwords, independent reconciliation, and audit trail.

  3.

  Control self-assessment tools used by management.

  4.

  Independent verification of data integrity and accuracy.

  A. 1, 2, and 3

  B. 1, 2, and 4

  C. 1, 3, and 4

  D. 2, 3, and 4

  Correct Answer: A

• Question 189:

  Which of the following statements about slack time and milestones are true?

  1.

  Slack time represents the amount of time a task may be delayed without delaying the entire project.

  2.

  A milestone is a moment in time that marks the completion of the project's major deliverables.

  3.

  Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.

  4.

  A milestone requires resource allocation and needs time to be completed.

  A. 1 and 4 only

  B. 2 and 3 only

  C. 1, 2, and 3 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 190:

  Which of the following conditions could lead an organization to enter into a new business through internal development rather than through acquisition?

  A. It is expected that there will be slow retaliation from incumbents.

  B. The acquiring organization has information that the selling organization is weak.

  C. The number of bidders to acquire the organization for sale is low.

  D. The condition of the economy is poor.

  Correct Answer: A