IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 381:

  Refer to the exhibit.

  

  The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?

  A. 21 days.

  B. 22 days.

  C. 27 days.

  D. 51 days.

  Correct Answer: C

• Question 382:

  For an engineering department with a total quality management program, important elements of quality management include all of the following except:

  A. Basing performance evaluations on the number of projects completed.

  B. Comparing results with those of other engineering departments.

  C. Creating a quality council within the engineering department.

  D. Conducting post-project surveys on performance.

  Correct Answer: A

• Question 383:

  Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?

  1.

  Encryption.

  2.

  Trafficpadding.

  3.

  Edit checks.

  4.

  Structured data format.

  A. 1 and 2 only

  B. 2 and 3 only

  C. 3 and 4 only

  D. 1, 2, and 3 only

  Correct Answer: A

• Question 384:

  Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

  A. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.

  B. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.

  C. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.

  D. 50 percent of total organizational cost has been allocated on a volume basis.

  Correct Answer: D

• Question 385:

  Which of the following steps should an internal auditor take during an audit of an organization's business continuity plans?

  1.

  Evaluate the business continuity plans for adequacy and currency.

  2.

  Prepare a business impact analysis regarding the loss of critical business.

  3.

  Identify key personnel who will be required to implement the plans.

  4.

  Identify and prioritize the resources required to support critical business processes.

  A. 1 only

  B. 2 and 4 only

  C. 1, 3, and 4 only

  D. 1, 2, 3, and 4

  Correct Answer: A

• Question 386:

  During a review of a web-based application used by customers to check the status of their bank accounts, it would be most important for the internal auditor to ensure that:

  A. Access to read application logs is restricted to authorized users.

  B. Account balance information is encrypted in the database.

  C. The web server used to host the application is located in a physically secure area.

  D. Sensitive data, such as account numbers, are submitted using encrypted communications.

  Correct Answer: D

• Question 387:

  The main reason to establish internal controls in an organization is to:

  A. Encourage compliance with policies and procedures.

  B. Safeguard the resources of the organization.

  C. Ensure the accuracy, reliability, and timeliness of information.

  D. Provide reasonable assurance on the achievement of objectives.

  Correct Answer: D

• Question 388:

  Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

  A. Borrowers may not sign all required mortgage loan documentation.

  B. Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.

  C. The bank's loan documentation may not meet the government's disclosure requirements.

  D. Loan officers may override the lending criteria established by senior management.

  Correct Answer: D

• Question 389:

  When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

  A. Identifying risks to the organization's operations.

  B. Observing and analyzing controls.

  C. Prioritizing known risks.

  D. Reviewing organizational objectives.

  Correct Answer: D

• Question 390:

  The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?

  A. Risk acceptance.

  B. Risk sharing.

  C. Risk avoidance.

  D. Risk reduction.

  Correct Answer: D