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IIA-CIA-Part3-3P CIA Exam Part Three: Business Knowledge for Internal Auditing is now Stable and With Pass Result | Test Your Knowledge for Free

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CIA Exam Part Three: Business Knowledge for Internal Auditing

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Total Questions : 488

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Question # 21

A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:

Options:

A.  

Adequate segregation of duties between data processing controls and file security controls.

B.  

Documented procedures for remote job entry and for local data file retention.

C.  

Emergency and disaster recovery procedures and maintenance agreements in place to ensure continuity of operations.

D.  

Established procedures to prevent and detect unauthorized changes to data files.

Discussion 0
Question # 22

Which of the following roles would be least appropriate for the internal audit activity to undertake with regard to an organization's corporate social responsibility (CSR) program?

Options:

A.  

Consult on project design and implementation of the CSR program.

B.  

Serve as an advisor on internal controls related to CSR.

C.  

Identify and prioritize the CSR issues that are important to the organization.

D.  

Evaluate the effectiveness of the organization's CSR efforts.

Discussion 0
Question # 23

When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:

Options:

A.  

Draws positive attention to the writing style.

B.  

Treats all receivers with respect.

C.  

Suits the method of presentation and delivery.

D.  

Develops ideas without overstatement.

Discussion 0
Question # 24

A manager has difficulty motivating staff to improve productivity, despite establishing a lucrative individual reward system. Which of the following is most likely the cause of the difficulty?

Options:

A.  

High degree of masculinity.

B.  

Low uncertainty avoidance.

C.  

High collectivism.

D.  

Low long-term orientation.

Discussion 0
Question # 25

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?

Options:

A.  

Electronic funds transfer.

B.  

Knowledge-based systems.

C.  

Biometrics.

D.  

Standardized graphical user interface.

Discussion 0
Question # 26

According to Porter, which of the following is associated with fragmented industries?

Options:

A.  

Weak entrance barriers.

B.  

Significant scale economies.

C.  

Steep experience curve.

D.  

Strong negotiation power with suppliers.

Discussion 0
Question # 27

Which of the following statements is true regarding the roles and responsibilities associated with a corporate social responsibility (CSR) program?

Options:

A.  

The board has overall responsibility for the internal control processes associated with the CSR program.

B.  

Management has overall responsibility for the effectiveness of governance, risk management, and internal control processes associated with the CSR program.

C.  

The internal audit activity is responsible for ensuring that CSR principles are integrated into the

organization's policies and procedures.

D.  

Every employee has a responsibility for ensuring the success of the organization's CSR objectives.

Discussion 0
Question # 28

An organization is considering the outsourcing of its business processes related to payroll and information technology functions. Which of the following is the most significant area of concern for management regarding this proposed agreement?

Options:

A.  

Ensuring that payments to the vendor are appropriate and timely for the services delivered.

B.  

Ensuring that the vendor has complete management control of the outsourced process.

C.  

Ensuring that there are means of monitoring the efficiency of the outsourced process.

D.  

Ensuring that there are means of monitoring the effectiveness of the outsourced process.

Discussion 0
Question # 29

International marketing activities often begin with:

Options:

A.  

Standardization.

B.  

Global marketing.

C.  

Limited exporting.

D.  

Domestic marketing.

Discussion 0
Question # 30

An organization is projecting sales of 100,000 units, at a unit price of $12. Unit variable costs are $7. If fixed costs are $350,000, what is the projected total contribution margin?

Options:

A.  

$350,000

B.  

$500,000

C.  

$850,000

D.  

$1,200,000

Discussion 0
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