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IIA-CIA-Part3 Practice Questions

Internal Audit Function

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Question # 226

Which of the following types of budgets will best provide the basis for evaluating the organization ' s performance?

Options:

A.  

Cash budget.

B.  

Budgeted balance sheet.

C.  

Selling and administrative expense budget.

D.  

Budgeted income statement.

Discussion 0
Question # 227

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

Options:

A.  

Motion detectors.

B.  

Key card access to the facility.

C.  

Security cameras.

D.  

Monitoring access to data center workstations

Discussion 0
Question # 228

An organization uses the management-by-objectives method, whereby employee performance is based on defined goals. Which of the following statements is true regarding this approach?

Options:

A.  

It is particularly helpful to management when the organization is facing rapid change

B.  

It is a more successful approach when adopted by mechanistic organizations

C.  

It is more successful when goal-setting is performed not only by management, but by all team members, including lower-level staff

D.  

It is particularly successful in environments that are prone to having poor employer-employee relations

Discussion 0
Question # 229

Which of the following functions of access control systems involves keeping logs of a user ' s activity in a system?

Options:

A.  

Identification.

B.  

Authentication.

C.  

Authorization.

D.  

Accountability.

Discussion 0
Question # 230

Which of the following is the starting point for a chief audit executive to prioritize engagements to be included in the internal audit plan?

Options:

A.  

A risk management maturity model

B.  

A risk matrix

C.  

An annual assurance map

D.  

An internal control framework

Discussion 0
Question # 231

The chief audit executive (CAE) has been asked to evaluate the chief technology officer ' s proposal to outsource several key functions in the organization ' s IT department. Which of the following would be the most appropriate action for the CAE to determine whether the proposal aligns with the organization ' s strategy?

Options:

A.  

Understand strategic context and evaluate whether supporting information is reliable and complete.

B.  

Ascertain whether governance and approval processes are transparent, documented, and completed.

C.  

Perform a due diligence review or asses management ' s review of provider operations.

D.  

Identify key performance measures and data sources.

Discussion 0
Question # 232

Which of the following is improved by the use of smart devices?

Options:

A.  

Version control

B.  

Privacy

C.  

Portability

D.  

Secure authentication

Discussion 0
Question # 233

After auditing the treasury function, the internal audit team issued a final report, which included an action plan agreed with management. When the audit team returned three months later to follow up on the action plan, management indicated that the plan had not been implemented because the old treasury system was being replaced with a new system. Which of the following is the most appropriate audit response?

Options:

A.  

The internal audit team should propose a new, relevant action plan that takes into account the new treasury system

B.  

The internal audit team should disregard the original action plan and follow up next year, after management determines whether the new system poses any new risks

C.  

The internal audit team should report this issue to the chief audit executive, who should communicate management ' s noncompliance directly to the board

D.  

The internal audit team should report this issue to the chief audit executive, who should discuss the issue with senior management

Discussion 0
Question # 234

Which of the following is the most important contract term to audit, because it typically impacts business efficiency?

Options:

A.  

Warranty service.

B.  

Extraordinary circumstance clause.

C.  

Indemnities.

D.  

Limitation of liability.

Discussion 0
Question # 235

An internal auditor discusses user-defined default passwords with the database administrator. Such passwords will be reset as soon as the user logs in for the first time, but the initial value of the password is set as " 123456. " Which of the following are the auditor and the database administrator most likely discussing in this situation?

Options:

A.  

Whether it would be more secure to replace numeric values with characters.

B.  

What happens in the situations where users continue using the initial password.

C.  

What happens in the period between the creation of the account and the password change.

D.  

Whether users should be trained on password management features and requirements.

Discussion 0
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