IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 291:

  A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?

  A. Evaluate the proposed external auditor fee.

  B. Recommend criteria to be used in the selection process.

  C. Develop appropriate performance metrics.

  D. Monitor the work of the external auditors.

  Correct Answer: C

• Question 292:

  An internal auditor performed a review of IT outsourcing and found that the service provider was failing to

  meet the terms of the service level agreement.

  Which of the following approaches is most appropriate to address this concern?

  A. The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.

  B. The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.

  C. The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.

  D. The organization should work with the service provider to review the current agreement and expectations relating to objectives, processes, and overall performance.

  Correct Answer: B

• Question 293:

  Which of the following statements best describes the frameworks set forth by the International Standards Organization?

  A. Globally accepted standards for industries and processes.

  B. Bridging the gaps among control requirements, technical issues, and business risks.

  C. Practical guidance and benchmarks for all organizations that use information systems.

  D. Frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.

  Correct Answer: A

• Question 294:

  The economic order quantity can be calculated using the following formula: Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

  

  A. Decrease by about 17 percent.

  B. Decrease by about 7 percent.

  C. Increase by about 7 percent.

  D. Increase by about 17 percent.

  Correct Answer: D

• Question 295:

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

  A. Decentralized organizations are more focused on organizational goals.

  B. Decentralized organizations streamline organizational structure.

  C. Decentralized organizations tend to be less expensive to operate.

  D. Decentralized organizations tend to be more responsive to market changes.

  Correct Answer: D

• Question 296:

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

  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.

  Correct Answer: D

• Question 297:

  Which of the following descriptions of the internal control system are indicators that risks are managed effectively?

  1.

  Existing controls promote compliance with applicable laws and regulations.

  2.

  The control environment is designed to address all identified risks to the organization.

  3.

  Key controls for significant risks to the organization remain consistent over time.

  4.

  Monitoring systems are in place to alert management to unexpected events.

  A. 1 and 3.

  B. 1 and 4.

  C. 2 and 3.

  D. 2 and 4.

  Correct Answer: B

• Question 298:

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

  A. To assess whether an annual control review is necessary.

  B. To determine conformance with requirements and agreements.

  C. Toevaluate executive management oversight.

  D. Topromote environmental awareness.

  Correct Answer: B

• Question 299:

  Which of the following statements is true regarding the roles and responsibilities associated with a corporate social responsibility (CSR) program?

  A. The board has overall responsibility for the internal control processes associated with the CSR program.

  B. Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with the CSR program.

  C. The internal audit activity is responsible for ensuring that CSR principles are integrated into the organization's policies and procedures.

  D. Every employee has a responsibility for ensuring the success of the organization's CSR objectives.

  Correct Answer: D

• Question 300:

  Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?

  A. A multinational company has stockholders in other countries.

  B. A multinational company exports its products to other countries.

  C. A multinational company operates outside of its country of origin.

  D. A multinational company uses raw materials and components from more than one country.

  Correct Answer: C