IIA-CIA-Part3 Practice Questions

A.  

Globalization strategy.

B.  

Transnational strategy.

C.  

Multidomestic strategy.

D.  

Export strategy.

A.  

Streamlined decision-making, rather than building consensus among users.

B.  

Consideration of the facts, rather than consideration of the emotions displayed by project stakeholders.

C.  

Focus on flexibility and adaptability, rather than use of a formal methodology.

D.  

Inclusion of critical features, rather than inclusion of an array of supplementary features.

A.  

Application program code.

B.  

Database system.

C.  

Operating system.

D.  

Networks.

A.  

Data relationships are assumed to exist and to continue where no known conflicting conditions exist

B.  

Analytical procedures are intended primarily to ensure the accuracy of the information being examined

C.  

Data relationships cannot include comparisons between operational and statistical data

D.  

Analytical procedures can be used to identify differences, but cannot be used to identify the absence of differences

A.  

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

B.  

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

C.  

Specific identification method.

D.  

Average-cost method

A.  

Cash payback

B.  

Annual rate of return

C.  

Incremental analysis

D.  

Net present value

A.  

Project plan development.

B.  

Project plan execution

C.  

Integrated change control.

D.  

Project quality planning

A.  

Social benefits.

B.  

Compensation.

C.  

Job safety.

D.  

Recognition

A.  

The audit areas that should be reviewed

B.  

The level of testing that will be required

C.  

The qualifications needed on the external assessment team

D.  

The specialized skills that each external assessment team member needs

A.  

Transaction logs are maintained to capture a history of system processing.

B.  

System security settings require the use of strong passwords and access controls.

C.  

Failed system login attempts are recorded and analyzed to identify potential security incidents.

D.  

System servers are secured by locking mechanisms with access granted to specific individuals.

A.  

Fixed costs.

B.  

Variable costs.

C.  

Conversion costs.

D.  

Incremental costs.

A.  

Functional structure.

B.  

Divisional structure.

C.  

Mechanistic structure.

D.  

Functional structure with cross-functional teams.

A.  

At the external perspective level

B.  

At the internal audit function level

C.  

At the internal audit engagement level

D.  

At the self-assessment activity level

A.  

Board of directors.

B.  

Senior management.

C.  

Chief financial officer.

D.  

Accounting personnel.

A.  

Using the net present value method, a proposal is acceptable when the net present value is negative.

B.  

The internal rate of return is the highest interest rate that will cause the present value of the proposed capital expenditure to be less than the present value of expected net annual cash flows.

C.  

The cash payback technique is used to determine the period of time required to recover the capital investment, plus the expected return, from the annual cash flow produced by the investment.

D.  

The annual rate of return technique is used to estimate the profitability of a capital expenditure by dividing the expected annual net income by the average investment.