Download IIA-CIA-Part3 Updated Dumps: A Good Way To Prepare For CIA Exam Part Three: Business Knowledge for Internal Auditing Exam

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

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

2. 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?

3. With increased cybersecurity threats, which of the following should management consider to ensure that there is strong security governance in place?

4. Which of the following risks is best addressed by encryption?

5. Which of the following best describes a man-in-the-middle cyber-attack?

6. Which of the following application controls is the most dependent on the password owner?

7. Which of the following is the best example of IT governance controls?

8. Which of the following networks is suitable for an organization that has operations In multiple cities and countries?

9. Which of the following facilitates data extraction from an application?

10. While conducting an audit of the accounts payable department, an internal auditor found that 3% of payments made during the period under review did not agree with the submitted invoices.

Which of the following key performance indicators (KPIs) for the department would best assist the auditor in determining the significance of the test results?

11. Which of the following IT professionals is responsible for providing maintenance to switches and routers to keep IT systems running as intended?

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

13. Which of the following best describes a potential benefit of using data analyses?

14. If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?

15. A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.

Which of the following organizational structures does this situation represent?

16. Which of the following attributes of data are cybersecurity controls primarily designed to protect?

17. The management of working capital is most crucial for which of the following aspects of business?

18. A organization finalized a contract in which a vendor is expected to design, procure, and construct a power substation for $3,000,000.

In this scenario, the organization agreed to which of the following types of contracts?

19. Which of the following would be the strongest control to prevent unauthorized wireless network access?

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

21. Favorable labor rate variance.

22. Which of the following intangible assets is considered to have an indefinite life?

23. Which of the following should internal auditors be attentive of when reviewing personal data consent and opt-in/opt-out management process?

24. 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?

25. Which of the following statements is true regarding a bring-your-own-device (BYOD) environment?

26. Which of the following is a primary driver behind the creation and prloritteation of new strategic Initiatives established by an organization?

27. Management is designing its disaster recovery plan. In the event that there is significant damage to the organization's IT systems this plan should enable the organization to resume operations at a recovery site after some configuration and data restoration.

Which of the following is the ideal solution for management in this scenario?

28. Which of the following is the best example of a compliance risk that Is likely to arise when adopting a bring-your-own-device (BYOD) policy?

29. Which of the following is a result of Implementing on e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and biting?

30. A multinational organization allows its employees to access work email via personal smart devices. However, users are required to consent to the installation of mobile device management (MDM) software that will remotely wipe data in case of theft or other incidents.

Which of the following should the organization ensure in exchange for the employees' consent?

31. An internal auditor reviews a data population and calculates the mean, median, and range.

What is the most likely purpose of performing this analytic technique?

32. Which of the following statements is true regarding activity-based costing (ABC)?

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

34. Which of the following is an example of internal auditors applying data mining techniques for exploratory purposes?

35. An intruder posing as the organization's CEO sent an email and tricked payroll staff into providing employees' private tax information.

What type of attack was perpetrated?

36. Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic cate interchange?

37. According to lIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?

38. Which of the following is a disadvantage in a centralized organizational structure?

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

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

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

41. Which of the following would be the best method to collect information about employees' job satisfaction?

42. Which of the following network types should an organization choose if it wants to allow access only to its own personnel?

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

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

45. On the last day of the year, a total cost of S 150.000 was incurred in indirect labor related to one of the key products an organization makes.

How should the expense be reported on that year's financial statements?

46. Which of the following is true of matrix organizations?

47. Which of the following statements describes the typical benefit of using a flat organizational structure for the internal audit activity, compared to a hierarchical structure?

48. An organization's board of directors is particularly focused on positioning, the organization as a leader in the industry and beating the competition.

Which of the following strategies offers the greatest alignment with the board's focus?

49. At what stage of project integration management would a project manager and project management team typically coordinate the various technical and organizational interfaces that exist in the project?

50. Internal auditors want to increase the likelihood of identifying very small control and transaction anomalies in their testing that could potentially be exploited to cause material breaches.

Which of the following techniques would best meet this objective?

51. CORRECT TEXT

Which of the following is a project planning methodology that involves a complex series of required simulations to provide information about schedule risk?

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

53. Which of the following security controls would be me most effective in preventing security breaches?

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

55. 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?

56. Which of the following financial statements provides the best disclosure of how a company's money was used during a particular period?

57. Which of the following IT-related activities is most commonly performed by the second line of defense?

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

59. Which of the following should software auditors do when reporting internal audit findings related to enterprisewide resource planning?

60. Which component of an organization's cybersecurity risk assessment framework would allow management to implement user controls based on a user's role?

61. Which of the following best describes a cyberattacK in which an organization faces a denial-of-service threat created through malicious data encryption?

62. Which of the following is an indicator of liquidity that is more dependable than working capital?

63. Which of the following statements is true concerning the basic accounting treatment of a partnership?

64. Which of the following controls would enable management to receive timely feedback and help mitigate unforeseen risks?

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

What would be the primary purpose of this strategy?

66. With regard to project management, which of the following statements about project crashing Is true?

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

68. Which of the following is on advantage of a decentralized organizational structure, as opposed to a centralized structure?

69. Which of the following would be classified as IT general controls?

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

71. Which of the following can be classified as debt investments?

72. A large retail customer made an offer to buy 10.000 units at a special price of $7 per unit. The manufacturer usually sells each unit for §10, Variable Manufacturing costs are 55 per unit and fixed manufacturing costs are $3 per unit.

For the manufacturer to accept the offer, which of the following assumptions needs to be true?

73. Which of the following authentication device credentials is the most difficult to revoke when an employee s access rights need to be removed?

74. Which of the following is an example of a physical control?

75. Which of the following is a benefit from the concept of Internet of Things?

76. Which of the following IT disaster recovery plans includes a remote site dessgnated for recovery with available space for basic services, such as internet and telecommunications, but does not have servers or infrastructure equipment?

77. According to Maslow's hierarchy of needs theory, which of the following best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

78. When executive compensation is based on the organization's financial results, which of the following situations is most likely to arise?

79. Which of the following would be a concern related to the authorization controls utilized for a system?

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

81. Which of the following risks would Involve individuals attacking an oil company's IT system as a sign of solidarity against drilling in a local area?

82. An organization with a stable rating, as assessed by International rating agencies, has issued a bond not backed by assets or collateral. Payments of the interests and the principal to bondholders are guaranteed by the organization.

Which type of bond did the organization issue?

83. Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?

84. Which of the following statements is true regarding the term "flexible budgets" as it is used in accounting?

85. Which of the following types of date analytics would be used by a hospital to determine which patients are likely to require remittance for additional treatment?

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

87. A financial institution receives frequent and varied email requests from customers for funds to be wired out of their accounts.

Which verification activity would best help the institution avoid falling victim to phishing?

88. A chief audit executive wants to implement an enterprisewide resource planning software.

Which of the following internal audit assessments could provide overall assurance on the likelihood of the software implementation's success?

89. Management has established a performance measurement focused on the accuracy of disbursements. The disbursement statistics, provided daily to ail accounts payable and audit staff, include details of payments stratified by amount and frequency.

Which of the following is likely to be the greatest concern regarding this performance measurement?

90. Which of the following statements. Is most accurate concerning the management and audit of a web server?

91. 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?

92. Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?

93. In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners.

Which of the following network types is illustrated by this scenario?

94. An internal auditor is assessing the risks related to an organization's mobile device policy. She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems.

Which of the following types of smart device risks should the internal Auditor be most concerned about?

95. Which of following best demonstrates the application of the cost principle?

96. Which of the following backup methodologies would be most efficient in backing up a database in the production environment?