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IIA-CIA-Part3 Practice Questions

Internal Audit Function

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Question # 166

Which of the following controls is designed to mitigate a physical IT risk?

Options:

A.  

An automated fire prevention system.

B.  

Access control restrictions in a system.

C.  

Anti-malware protection software.

D.  

A network isolating firewall system.

Discussion 0
Question # 167

Organizations use matrix management to accomplish which of the following?

Options:

A.  

To improve the chain of command.

B.  

To strengthen corporate headquarters.

C.  

To focus better on a single market.

D.  

To increase lateral communication.

Discussion 0
Question # 168

Management is pondering the following question:

" How does our organization compete? "

This question pertains to which of the following levels of strategy?

Options:

A.  

Functional-level strategy

B.  

Corporate-level strategy.

C.  

Business-level strategy,

D.  

DepartmentsHevet strategy

Discussion 0
Question # 169

Which of the following statements is true regarding outsourced business processes?

Options:

A.  

Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.

B.  

Generally, independence is improved when the internal audit activity reviews outsourced business processes.

C.  

The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.

D.  

The system of internal controls may be better and more efficient when the business process is outsourced compared to internally sourced.

Discussion 0
Question # 170

An organization decided to reorganize into a flatter structure. Which of the following changes would be expected with this new structure?

Options:

A.  

Lower costs.

B.  

Slower decision making at the senior executive level.

C.  

Limited creative freedom in lower-level managers.

D.  

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

Discussion 0
Question # 171

An internal auditor wishes to test why there was a significant drop in accounts payable volume last month and creates several scenarios to help explain the anomaly.

Which of the following best describes this data analysis technique?

Options:

A.  

Descriptive.

B.  

Diagnostic.

C.  

Predictive.

D.  

Prescriptive.

Discussion 0
Question # 172

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?

    It significantly raises compensation and staffing costs.

    It produces resentment among the organization ' s employees in host countries.

    It limits career mobility for parent-country nationals.

    It can lead to cultural myopia.

Options:

A.  

1 and 4 only

B.  

2 and 3 only

C.  

1, 2, and 3 only

D.  

1, 2, and 4 only

Discussion 0
Question # 173

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?

Options:

A.  

A flat structure results in lower operating and support costs than a hierarchical structure.

B.  

A flat structure results in a stable and very collaborative environment.

C.  

A flat structure enables field auditors to report to and learn from senior auditors.

D.  

A flat structure is more dynamic and offers more opportunities for advancement than a hierarchical structure.

Discussion 0
Question # 174

Which of the following measures would best protect an organization from automated attacks whereby the attacker attempts to identify weak or leaked passwords in order to log into employees ' accounts?

Options:

A.  

Requiring users to change their passwords every two years.

B.  

Requiring two-step verification for all users

C.  

Requiring the use of a virtual private network (VPN) when employees are out of the office.

D.  

Requiring the use of up-to-date antivirus, security, and event management tools.

Discussion 0
Question # 175

Which of the following best describes the job design strategy used by the chief audit executive that encourages internal auditors to manage engagements from the beginning to the end?

Options:

A.  

Job sharing.

B.  

Job shadowing.

C.  

Job enrichment.

D.  

Job rotation.

Discussion 0
Question # 176

Which of the following is a characteristic of big data?

Options:

A.  

Big data is being generated slowly due to volume.

B.  

Big data must be relevant for the purposes of organizations.

C.  

Big data comes from a single type of formal.

D.  

Big data is always changing

Discussion 0
Question # 177

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

Options:

A.  

Internal auditors perform reconciliation procedures to support an external audit of financial reporting.

B.  

Internal auditors perform a systems-focused analysis to review relevant controls.

C.  

Internal auditors perform a risk assessment to identify potential audit subjects as input for the annual internal audit plan

D.  

Internal auditors test IT general controls with regard to operating effectiveness versus design

Discussion 0
Question # 178

Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management ' s duties with regard to this model?

Options:

A.  

Ensure compliance with the model.

B.  

Identify management functions.

C.  

Identify emerging issues.

D.  

Set goals for implementation.

Discussion 0
Question # 179

Which of the following are appropriate functions for an IT steering committee?

    Assess the technical adequacy of standards for systems design and programming.

    Continually monitor the adequacy and accuracy of software and hardware in use.

    Assess the effects of new technology on the organization ' s IT operations.

    Provide broad oversight of implementation, training, and operation of new systems.

Options:

A.  

1, 2, and 3

B.  

1, 2, and 4

C.  

1, 3, and 4

D.  

2, 3, and 4

Discussion 0
Question # 180

Which of the following best describes the benefit of an organization adopting a business continuity and disaster recovery plan for responding to natural disasters?

Options:

A.  

It prevents economic impact to the organization.

B.  

It enables the organization to predict when a natural disaster will occur.

C.  

It reduces the likelihood that events will disrupt operating activities.

D.  

It eliminates the threat to the organization.

Discussion 0
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