IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 311:

  The audit committee of a global corporation has mandated a change in the organization's business ethics policy. Which of the following approaches describes the best way to accomplish the policy's diffusion worldwide?

  A. Deploy the policy in the corporate headquarters' language, so everyone gets an unfiltered version simultaneously.

  B. Introduce the policy region by region, using any lessons learned to change the subsequent version of the policy for the next area.

  C. Consult with legal and operational management in each affected country to ensure the final version can be implemented globally, following audit committee approval.

  D. Send the board-approved version of the policy to each country's senior leadership, and empower them to tailor the policy to the local language and culture.

  Correct Answer: C

• Question 312:

  Which of the following are included in ISO 31000 risk principles and guidelines?

  A. Standards, framework, and process.

  B. Standards, assessments, and process.

  C. Principles, framework, and process.

  D. Principles, practices, and process.

  Correct Answer: C

• Question 313:

  Which of the following costs would be incurred in an inventory stockout?

  A. Lost sales, lost customers, and backorder.

  B. Lost sales, safety stock, and backorder.

  C. Lost customers, safety stock, and backorder.

  D. Lost sales, lost customers, and safety stock.

  Correct Answer: A

• Question 314:

  Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

  A. Electronic funds transfer.

  B. Knowledge-basedsystems.

  C. Biometrics.

  D. Standardized graphical user interface.

  Correct Answer: A

• Question 315:

  The internal audit activity completed an initial risk analysis of the organization's data storage center and

  found several areas of concern.

  Which of the following is the most appropriate next step?

  A. Risk response.

  B. Risk identification.

  C. Identification of context.

  D. Risk assessment.

  Correct Answer: D

• Question 316:

  Organizations use matrix management to accomplish which of the following?

  A. To improve the chain of command.

  B. Tostrengthen corporate headquarters.

  C. To focus better on a single market.

  D. Toincrease lateral communication.

  Correct Answer: D

• Question 317:

  An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk managementstrategy?

  A. Avoidance.

  B. Reduction.

  C. Elimination.

  D. Sharing.

  Correct Answer: B

• Question 318:

  According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?

  A. Determine the optimal amount of resources for the organization to invest in CSR.

  B. Align CSR program objectives with the organization's strategic plan.

  C. Integrate CSR activities into the organization's decision-making process.

  D. Determine whether the organization has an appropriate policy governing its CSR activities .

  Correct Answer: D

• Question 319:

  Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?

  1.

  The IAA does not have any responsibility because IT governance is the responsibility of the board and

  senior management of the organization.

  2.

  The IAA must assess whether the IT governance of the organization supports the organization's strategies and objectives.

  3.

  The IAA may assess whether the IT governance of the organization supports the organization's strategies and objectives.

  4.

  The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's strategies and objectives.

  A. 1 only

  B. 4 only

  C. 2 and 4

  D. 3 and 4

  Correct Answer: C

• Question 320:

  Which audit approach should be employed to test the accuracy of information housed in a database on an un- networkedcomputer?

  A. Submit batches of test transactions through the current system and verify with expected results.

  B. Use a test program to simulate the normal data entering process.

  C. Select a sample of records from the database and ensure it matches supporting documentation.

  D. Evaluate compliance with the organization's change management process.

  Correct Answer: C