IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 301:

  An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?

  A. 7 percent simple interest with a 10 percent compensating balance.

  B. 7 percent simple interest paid at the end of each year.

  C. 7 percent discount interest.

  D. 7 percent compounding interest.

  Correct Answer: B

• Question 302:

  Which of the following statements is true regarding the relationship between an individual's average tax rate and marginal tax rate?

  A. In a regressive personal tax system, an individual's marginal tax rate is normally greater than his

  average tax rate.

  B. In a regressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.

  C. In a progressive personal tax system, an individual's marginal tax rate is normally equal to his average tax rate.

  D. In a progressive personal tax system, an individual's marginal tax rate is normally greater than his average tax rate.

  Correct Answer: D

• Question 303:

  Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

  A. Penetration test.

  B. Social engineering test.

  C. Vulnerability test.

  D. Physical control test.

  Correct Answer: D

• Question 304:

  Which of the following is the primary benefit of including end users in the system development process?

  A. Improved integrity of programs and processing.

  B. Enhanced ongoing maintenance of the system.

  C. Greater accuracy of the testing phase.

  D. Reduced need for unexpected software changes.

  Correct Answer: C

• Question 305:

  Which of the following are likely indicators of ineffective change management?

  1.

  IT management is unable to predict how a change will impact interdependent systems or business processes.

  2.

  There have been significant increases in trouble calls or in support hours logged by programmers.

  3.

  There is a lack of turnover in the systems support and business analyst development groups.

  4.

  Emergency changes that bypass the normal control process frequently are deemed necessary.

  A. 1 and 3 only

  B. 2 and 4 only

  C. 1, 2, and 4 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 306:

  Which of the following application software features is the least effective control to protect passwords?

  A. Suspension of user IDs after a user's repeated attempts to sign on with an invalid password.

  B. Encryption of passwords prior to their transmission or storage.

  C. Forced change of passwords after a designated number of days.

  D. Automatic logoff of inactive users after a specified time period of inactivity.

  Correct Answer: C

• Question 307:

  Which of the following is a limiting factor for capacity expansion?

  A. Government pressure on organizations to increase or maintain employment.

  B. Production orientation of management.

  C. Lack of credible market leader in the industry.

  D. Companydiversification.

  Correct Answer: D

• Question 308:

  Which of the following stages of group development is associated with accepting team responsibilities?

  A. Forming stage.

  B. Performing stage.

  C. Norming stage.

  D. Storming stage.

  Correct Answer: C

• Question 309:

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

  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.

  Correct Answer: A

• Question 310:

  Which of the following best describes a market signal?

  A. The bargaining power of buyers is forcing a drop in market prices.

  B. There is pressure from the competitor's substitute products.

  C. Strategic analysis by the organization indicates feasibility of expanding to new market niches.

  D. The competitor announces a new warranty program.

  Correct Answer: D