CIA Part 3 Exam IIA-CIA-Part3 Dumps - Quickly Prepare For CIA Exam Part Three: Business Knowledge for Internal Auditing Exam Well

CIA Part 3 Exam IIA-CIA-Part3 Dumps – Quickly Prepare For CIA Exam Part Three: Business Knowledge for Internal Auditing Exam Well

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1. Unavailability of critical services.

2 and 3 only.

1, 2, and 3 only

1, 3, and 4 only

2, 3, and 4 only

2. Which of the following controls would be most efficient to protect business data from corruption and errors?

Controls to ensure data is unable to be accessed without authorization.

Controls to calculate batch totals to identify an error before approval.

Controls to encrypt the data so that corruption is likely ineffective.

Controls to quickly identify malicious intrusion attempts.

3. Which of the following scenarios best illustrates a spear phishing attack?

Numerous and consistent attacks on the company's website caused the server to crash and service was disrupted.

A person posing as a representative of the company's IT help desk called several employees and played a generic prerecorded message requesting password data.

A person received a personalized email regarding a golf membership renewal, and he clicked a hyperlink to enter his credit card data into a fake website.

Many users of a social network service received fake notifications of a unique opportunity to invest in a new product

4. According to Herzberg's Two-Factor Theory of Motivation, which of the following is a factor mentioned most often by satisfied employees?

Security.

Status.

Recognition.

Relationship with coworkers

5. Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

The organization sells inventory to an overseas subsidiary at fair value.

The local subsidiary purchases inventory at a discounted price.

The organization sells inventory to an overseas subsidiary at the original cost.

The local subsidiary purchases inventory at the depreciated cost.

6. Which of the following statements is true regarding user-developed applications (UDAs)?

UDAs are less flexible and more difficult to configure than traditional IT applications.

Updating UDAs may lead to various errors resulting from changes or corrections.

UDAs typically are subjected to application development and change management controls.

Using UDAs typically enhances the organization's ability to comply with regulatory factors.

7. Which of the following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?

First-in. first-out method (FIFO).

Last-in, first-out method (LIFO).

Specific identification method.

Average-cost method

8. Which of the following actions would senior management need to consider as part of new IT guidelines regarding the organization's cybersecurity policies?

Assigning new roles and responsibilities for senior IT management.

Growing use of bring your own devices for organizational matters.

Expansion of operations into new markets with limited IT access.

Hiring new personnel within the IT department for security purposes.

9. During her annual performance review, a sales manager admits that she experiences significant stress due to her job but stays with the organization because of the high bonuses she earns.

Which of the following best describes her primary motivation to remain in the job?

Intrinsic reward.

Job enrichment

Extrinsic reward.

The hierarchy of needs.

10. An organization that relies heavily on IT wants to contain the impact of potential business disruption to a period of approximately four to seven days.

Which of the following

business recovery strategies would most efficiently meet this organization's needs?

A recovery strategy whereby a separate site has not yet been determined, but hardware has been reserved for purchase and data backups.

A recovery strategy whereby a separate site has been secured and is ready for use, with fully configured hardware and real-time synchronized data

A recovery strategy whereby a separate site has been secured and the necessary funds for hardware and data backups have been reserved.

A recovery strategy whereby a separate site has been secured with configurable hardware and data backups.

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11. An analytical model determined that on Friday and Saturday nights the luxury brands stores should be open for extended hours and with a doubled number of employees present; while on Mondays and Tuesdays costs can be minimized by reducing the number of employees to a minimum and opening only for evening hours

Which of the following best categorizes the analytical model applied?

Descriptive.

Diagnostic.

Prescriptive.

Prolific.

12. An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization's needs, in order to quickly recover operational capability in the event of a disaster, Which of the following best describes this approach to disaster recovery planning?

Cold recovery plan,

Outsourced recovery plan.

Storage area network recovery plan.

Hot recovery plan

13. A newly appointed board member received an email that appeared to be from the company's CEO.

The email stated:

“Good morning. As you remember, the closure of projects is our top priority. Kindly organize prompt payment of the attached invoice for our new solar energy partners.” The board member quickly replied to the email and asked under which project the expense should be accounted. Only then did he realize that the sender 's mail domain was different from the company's.

Which of the following cybersecurity risks nearly occurred in the situation described?

A risk of spyware and malware.

A risk of corporate espionage.

A ransomware attack risk.

A social engineering risk.

14. For which of the following scenarios would the most recent backup of the human resources database be the best source of information to use?

An incorrect program fix was implemented just prior to the database backup.

The organization is preparing to train all employees on the new self-service benefits system.

There was a data center failure that requires restoring the system at the backup site.

There is a need to access prior year-end training reports for all employees in the human resources database

15. Which of the following techniques would best detect an inventory fraud scheme?

Analyze Invoice payments just under individual authorization limits.

Analyze stratification of inventory adjustments by warehouse location.

Analyze inventory invoice amounts and compare with approved contract amounts.

Analyze differences discovered during duplicate payment testing

16. Which of the following is a characteristic of using a hierarchical control structure?

Less use of policies and procedures.

Less organizational commitment by employees.

Less emphasis on extrinsic rewards.

Less employee’s turnover.

17. An organization decided to reorganize into a flatter structure.

Which of the following changes would be expected with this new structure?

Lower costs.

Slower decision making at the senior executive level.

Limited creative freedom in lower-level managers.

Senior-level executives more focused on short-term, routine decision making

18. Several organizations have developed a strategy to open co-owned shopping malls.

What would be the primary purpose of this strategy?

To exploit core competence.

To increase market synergy.

To deliver enhanced value.

To reduce costs.

19. After purchasing shoes from an online retailer, a customer continued to receive additional unsolicited offers from the retailer and other retailers who offer similar products.

Which of the following is the most likely control weakness demonstrated by the seller?

Excessive collecting of information

Application of social engineering

Retention of incomplete information.

Undue disclosure of information

20. According to 11A guidance on IT, which of the following spreadsheets is most likely to be considered a high-risk user-developed application?

A revenue calculation spreadsheet supported with price and volume reports from the production department.

An asset retirement calculation spreadsheet comprised of multiple formulas and assumptions.

An ad-hoc inventory listing spreadsheet comprising details of written-off inventory quantities.

An accounts receivable reconciliation spreadsheet used by the accounting manager to verify balances

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21. Which of the following describes a mechanistic organizational structure?

Primary direction of communication tends to be lateral.

Definition of assigned tasks tends to be broad and general.

Type of knowledge required tends to be broad and professional.

Reliance on self-control tends to be low.

22. Which of the following contract concepts is typically given in exchange for the execution of a promise?

Lawfulness.

Consideration.

Agreement.

Discharge

23. An organization created a formalized plan for a large project.

Which of the following should be the first step in the project management plan?

Estimate time required to complete the whole project.

Determine the responses to expected project risks.

Break the project into manageable components.

Identify resources needed to complete the project

24. An organization's technician was granted a role that enables him to prioritize projects throughout the organization.

Which type of authority will the technician most likely be exercising?

Legitimate authority

Coercive authority.

Referent authority.

Expert authority.

25. Which of the following scenarios indicates an effective use of financial leverage?

An organisation has a rate of return on equity of 20% and a rate of return on assets of 15%.

An organization has a current ratio of 2 and an inventory turnover of 12.

An organization has a debt to total assets ratio of 0.2 and an interest coverage ratio of 10.

An organization has a profit margin of 30% and an assets turnover of 7%.

26. An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource.

In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided.

Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.

Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.

Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.

27. Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

Cost method.

Equity method.

Consolidation method.

Fair value method.

28. In light of increasing emission taxes in the European Union, a car manufacturer introduced a new middle-class hybrid vehicle specifically for the European market only.

Which of the following competitive strategies has the manufacturer used?

Reactive strategy.

Cost leadership strategy.

Differentiation strategy.

Focus strategy

29. Which of the following describes a third-party network that connects an organization specifically with its trading partners?

Value-added network (VAN).

Local area network (LAN).

Metropolitan area network (MAN).

Wide area network (WAN).

30. Which of the following is most influenced by a retained earnings policy?

Cash.

Dividends.

Gross margin.

Net income.

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31. Which of the following should software auditors do when reporting internal audit findings related to enterprise wide resource planning?

Draft separate audit reports for business and IT management.

Conned IT audit findings to business issues.

Include technical details to support IT issues.

Include an opinion on financial reporting accuracy and completeness.

32. Which of the following data security policies is most likely to be the result of a data privacy law?

Access to personally identifiable information is limited to those who need It to perform their job.

Confidential data must be backed up and recoverable within a 24-hour period.

Updates to systems containing sensitive data must be approved before being moved to production.

A record of employees with access to insider information must be maintained, and those employees may not trade company stock during blackout periods

33. Which of the following would most likely serve as a foundation for individual operational goats?

Individual skills and capabilities.

Alignment with organizational strategy.

Financial and human resources of the unit.

Targets of key performance indicators

34. Which of the following should be established by management during implementation of big data systems to enable ongoing production monitoring?

Key performance indicators.

Reports of software customization.

Change and patch management.

Master data management

35. Which of the following represents a basis for consolidation under the International Financial Reporting Standards?

Variable entity approach.

Control ownership.

Risk and reward.

Voting interest.

36. A company produces water buckets with the following costs per bucket:

Direct labor = 82

Direct material = $5

Fixed manufacturing = 83.50

Variable manufacturing = 82.50

The water buckets are usually sold for $15. However, the company received a special order for 50.000 water buckets at 311 each.

Assuming there is adequate manufacturing capacity and ail other variables are constant , what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?

$9.50

$10.50

$11

$13

37. An organization decided to outsource its human resources function. As part of its process migration, the organization is implementing controls over sensitive employee data.

What would be the most appropriate directive control in this area?

Require a Service Organization Controls (SOC) report from the service provider

Include a data protection clause in the contract with the service provider.

Obtain a nondisclosure agreement from each employee at the service provider who will handle sensitive data.

Encrypt the employees ' data before transmitting it to the service provider

38. Which of the following biometric access controls uses the most unique human recognition characteristic?

Facial comparison using photo identification.

Signature comparison.

Voice comparison.

Retinal print comparison.

39. Which of the following best describes the primary objective of cybersecurity?

To protect the effective performance of IT general and application controls.

To regulate users' behavior it the web and cloud environment.

To prevent unauthorized access to information assets.

To secure application of protocols and authorization routines.

40. According to IIA guidance on IT, which of the following strategies would provide the most effective access control over an automated point-of-sale system?

Install and update anti-virus software.

Implement data encryption techniques.

Set data availability by user need.

Upgrade firewall configuration

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41. An attacker, posing as a bank representative, convinced an employee to release certain, financial information that ultimately resulted in fraud.

Which of the following best describes this cybersecurity risk?

Shoulder suiting

Pharming,

Phishing.

Social engineering.

42. A manufacturer ss deciding whether to sell or process materials further.

Which of the following costs would be relevant to this decision?

Incremental processing costs, incremental revenue, and variable manufacturing expenses.

Joint costs, incremental processing costs, and variable manufacturing expenses.

Incremental revenue, joint costs, and incremental processing costs.

Variable manufacturing expenses, incremental revenue, and joint costs

43. An organization discovered fraudulent activity involving the employee time-tracking system. One employee regularly docked in and clocked out her co-worker friends on their days off, inflating their reported work hours and increasing their wages.

Which of the following physical authentication devices would be most effective at disabling this fraudulent scheme?

Face or finger recognition equipment,

Radiofrequency identification chips to authenticate employees with cards.

A requirement to clock in and clock out with a unique personal identification number.

A combination of a smart card and a password to clock in and clock out.

44. Which of the following best describes depreciation?

It is a process of allocating cost of assets between periods.

It is a process of assets valuation.

It is a process of accumulating adequate funds to replace assets.

It is a process of measuring decline in the value of assets because of obsolescence

45. Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?

A list of trustworthy, good traffic and a list of unauthorized, blocked traffic.

Monitoring for vulnerabilities based on industry intelligence.

Comprehensive service level agreements with vendors.

Firewall and other network perimeter protection tools.

46. Which of the following is an established systems development methodology?

Waterfall.

Projects in Controlled Environments (PRINCE2).

Information Technology Infrastructure Library (ITIL).

COBIT

47. Which of the following types of accounts must be closed at the end of the period?

Income statement accounts.

Balance sheet accounts.

Permanent accounts.

Real accounts.

48. 1.Which of the following best describes the purpose of fixed manufacturing costs?

To ensure availability of production facilities.

To decrease direct expenses related to production.

To incur stable costs despite operating capacity.

To increase the total unit cost under absorption costing

49. Which of the following is a characteristic of big data?

Big data is being generated slowly due to volume.

Big data must be relevant for the purposes of organizations.

Big data comes from a single type of formal.

Big data is always changing

50. An internal auditor is reviewing key phases of a software development project.

Which of the following would; the auditor most likely use to measure the project team's performance related to how project tasks are completed?

A balanced scorecard.

A quality audit

Earned value analysis.

Trend analysis

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51. During an audit of the payroll system, the internal auditor identifies and documents the following condition:

"Once a user is logged into the system, the user has access to all functionality within the system."

What is the most likely root cause for tins issue?

The authentication process relies on a simple password only, which is a weak method of authorization.

The system authorization of the user does not correctly reflect the access rights intended.

There was no periodic review to validate access rights.

The application owner apparently did not approve the access request during the provisioning process.

52. Which of the following actions should an internal auditor take to clean the data obtained for analytics purposes?

Deploys data visualization tool.

Adopt standardized data analysis software.

Define analytics objectives and establish outcomes.

Eliminate duplicate records.

53. Which of the following lists best describes the classification of manufacturing costs?

Direct materials, indirect materials, raw materials.

Overhead costs, direct labor, direct materials.

Direct materials, direct labor, depreciation on factory buildings.

Raw materials, factory employees' wages, production selling expenses.

54. When reviewing application controls using the four-level model, which of the following processes are associated with level 4 of the business process method?

Activity

Subprocess

Major process

Mega process

55. Which of the following is an effective preventive control for data center security?

Motion detectors.

Key card access to the facility.

Security cameras.

Monitoring access to data center workstations

56. An internal auditor identified a database administrator with an incompatible dual role.

Which of the following duties should not be performed by the identified administrator?

Designing and maintaining the database.

Preparing input data and maintaining the database.

Maintaining the database and providing its security,

Designing the database and providing its security

57. Which of the following capital budgeting techniques considers the tune value of money?

Annual rate of return.

Incremental analysis.

Discounted cash flow.

Cash payback

58. A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services.

Which of the following best describes the restaurants strategy?

Diversification

Vertical integration

Risk avoidance

Differentiation

59. An internal auditor is reviewing results from software development integration testing.

What is the purpose of integration testing?

To verify that the application meets stated user requirements.

To verify that standalone programs match code specifications.

To verify that the application would work appropriately for the intended number of users.

To verify that all software and hardware components work together as intended.

60. When determining the level of physical controls required for a workstation, which of the following factors should be considered?

Ease of use.

Value to the business.

Intrusion prevention.

Ergonomic model.

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61. Which of the following best describes owner's equity?

Assets minus liabilities.

Total assets.

Total liabilities.

Owners contribution plus drawings.

62. At one organization, the specific terms of a contract require both the promisor and promisee to sign the contract in the presence of an independent witness.

What is the primary role to the witness to these signatures?

A witness verifies the quantities of the copies signed.

A witness verifies that the contract was signed with the free consent of the promisor and promisee.

A witness ensures the completeness of the contract between the promisor and promisee.

A witness validates that the signatures on the contract were signed by the promisor and promisee.

63. Which of the following is a sound network configuration practice to enhance information security?

Change management practices to ensure operating system patch documentation is retained.

User role requirements are documented in accordance with appropriate application-level control needs.

Validation of intrusion prevention controls is performed to ensure intended functionality and data integrity.

Interfaces reinforce segregation of duties between operations administration and database development.

64. Which of the following security controls focuses most on prevention of unauthorized access to the power plant?

An offboarding procedure is initiated monthly to determine redundant physical access rights.

Logs generated by smart locks are automatically scanned to identify anomalies in access patterns.

Requests for additional access rights are sent for approval and validation by direct supervisors.

Automatic notifications are sent to a central security unit when employees enter the premises during nonwork hours

65. Which of the following is the most appropriate beginning step of a work program for an assurance engagement involving smart devices?

Train all employees on bring-your-own-device (BYOD) policies.

Understand what procedures are in place for locking lost devices

Obtain a list of all smart devices in use

Test encryption of all smart devices

66. Which of the following activities best illustrates a user's authentication control?

Identity requests are approved in two steps.

Logs are checked for misaligned identities and access rights.

Users have to validate their identity with a smart card.

Functions can toe performed based on access rights

67. Which of the following security controls would provide the most efficient and effective authentication for customers to access these online shopping account?

12-digit password feature.

Security question feature.

Voice recognition feature.

Two-level sign-on feature

68. Which of the following best describes a transformational leader, as opposed to a transactional leader?

The leader searches for deviations from the rules and standards and intervenes when deviations exist.

The leader intervenes only when performance standards are not met.

The leader intervenes to communicate high expectations.

The leader does not intervene to promote problem-solving

69. An organization has a declining inventory turnover but an increasing gross margin rate.

Which of the following statements can best explain this situation?

he organization's operating expenses are increasing.

The organization has adopted just-in-time inventory.

The organization is experiencing inventory theft.

The organization's inventory is overstated.

70. Which of the following would an organization execute to effectively mitigate and manage risks created by a crisis or event?

Only preventive measures.

Alternative and reactive measures.

Preventive and alternative measures.

Preventive and reactive measures.

Page 8 of 8

71. Employees at an events organization use a particular technique to solve problems and improve processes. The technique consists of five steps: define, measure, analyze,

improve, and control.

Which of the following best describes this approach?

Six Sigma,

Quality circle.

Value chain analysis.

Theory of constraints.

72. An internal auditor is assigned to perform data analytics.

Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?

Normalize the data,

Obtain the data

Identify the risks. Analyze the data.

73. Which of the following disaster recovery plans includes recovery resources available at the site, but they may need to be configured to support the production system?

Warm site recovery plan.

Hot site recovery plan.

Cool site recovery plan.

Cold site recovery plan.

74. Which of the following best explains the matching principle?

Revenues should be recognized when earned.

Revenue recognition is matched with cash.

Expense recognition is tied to revenue recognition.

Expenses are recognized at each accounting period.

75. Which of the following situations best illustrates a "false positive" in the performance of a spam filter?

The spam filter removed Incoming communication that included certain keywords and domains.

The spam filter deleted commercial ads automatically, as they were recognized as unwanted.

The spam filter routed to the "junk|r folder a newsletter that appeared to include links to fake websites.

The spam filter blocked a fitness club gift card that coworkers sent to an employee for her birthday.

76. Which of the following attributes of data is most likely to be compromised in an organization with a weak data governance culture?

Variety.

Velocity.

Volume.

Veracity.

77. Management has decided to change the organizational structure from one that was previously decentralized to one that is now highly centralized.

As such: which of the following would be a characteristic of the now highly centralized organization?

Top management does little monitoring of the decisions made at lower levels.

The decisions made at the lower levels of management are considered very important.

Decisions made at lower levels in the organizational structure are few.

Reliance is placed on top management decision making by few of the organization's departments.

78. Which of the following parties is most likely to be responsible for maintaining the infrastructure required to prevent the failure of a real-time backup of a database?

IT database administrator.

IT data center manager.

IT help desk function.

IT network administrator.

79. A company records income from an investment in common stock when it does which of the following?

Purchases bonds.

Receives interest.

Receives dividends

Sells bonds.

80. Which of the following concepts of managerial accounting is focused on achieving a point of low or no inventory?

Theory of constraints.

Just-in-time method.

Activity-based costing.

Break-even analysis

CIA Part 3 Exam IIA-CIA-Part3 Dumps – Quickly Prepare For CIA Exam Part Three: Business Knowledge for Internal Auditing Exam Well