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IIA-CIA-Part3 Practice Questions

Internal Audit Function

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Total Questions : 514

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Question # 31

The IT department maintains logs of user identification and authentication for all requests for access to the network. What is the primary purpose of these logs?

Options:

A.  

To ensure proper segregation of duties

B.  

To create a master repository of user passwords

C.  

To enable monitoring for systems efficiencies

D.  

To enable tracking of privileges granted to users over time

Discussion 0
Question # 32

According to IIA guidance, which of the following would be the best first step to manage risk when a third party is overseeing the organization’s network and data?

Options:

A.  

Creating a comprehensive reporting system for vendors to demonstrate their ongoing due diligence in network operations

B.  

Drafting a strong contract that requires regular vendor control reports and a right-to-audit clause

C.  

Applying administrative privileges to ensure right-to-access controls are appropriate

D.  

Creating a standing cybersecurity committee to identify and manage risks related to data security

Discussion 0
Question # 33

An employee was promoted within the organization and relocated to a new office in a different building. A few months later, security personnel discovered that the employee's smart card was being used to access the building where she previously worked. Which of the following security controls could prevent such an incident from occurring?

Options:

A.  

Regular review of logs.

B.  

Two-level authentication.

C.  

Photos on smart cards.

D.  

Restriction of access hours.

Discussion 0
Question # 34

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?

Options:

A.  

Fixed and Variable manufacturing costs are less than the special offer selling price.

B.  

The manufacturer can fulfill the order without expanding the capacities of the production facilities.

C.  

Costs related to accepting this offer can be absorbed through the sale of other products.

D.  

The manufacturer’s production facilities are currently operating at full capacity.

Discussion 0
Question # 35

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

Options:

A.  

The organization reports inappropriate estimates and accruals due to poof accounting controls.

B.  

The organization uses an unreliable process forgathering and reporting executive compensation data.

C.  

The organization experiences increasing discontent of employees, if executives are eligible for compensation amounts that are deemed unreasonable.

D.  

The organization encourages employee behavior that is inconsistent with the interests of relevant stakeholders.

Discussion 0
Question # 36

Which of the following parties is most likely to be responsible for maintaining the infrastructure required to prevent the failure of a real-time backup of a database?

Options:

A.  

IT database administrator.

B.  

IT data center manager.

C.  

IT help desk function.

D.  

IT network administrator.

Discussion 0
Question # 37

Which of the following principles is shared by both hierarchical and open organizational structures?

A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions.

A supervisor's span of control should not exceed seven subordinates.

Responsibility should be accompanied by adequate authority.

Employees at all levels should be empowered to make decisions.

Options:

A.  

1 and 3 only

B.  

1 and 4 only

C.  

2 and 3 only

D.  

3 and 4 only

Discussion 0
Question # 38

Which of the following is true of bond financing, compared to common stock, when alJ other variables are equal?

Options:

A.  

Lower shareholder control

B.  

lower indebtedness

C.  

Higher company earnings per share.

D.  

Higher overall company earnings

Discussion 0
Question # 39

Which of the following is a sound network configuration practice to enhance information security?

Options:

A.  

Change management practices to ensure operating system patch documentation is retained.

B.  

User role requirements are documented in accordance with appropriate application-level control needs.

C.  

Validation of intrusion prevention controls is performed to ensure intended functionality and data integrity.

D.  

Interfaces reinforce segregation of duties between operations administration and database development.

Discussion 0
Question # 40

An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?

Options:

A.  

Legitimate authority

B.  

Coercive authority.

C.  

Referent authority.

D.  

Expert authority.

Discussion 0
Question # 41

After identifying and reporting a control deficiency, which of the following actions should an internal auditor perform next?

Options:

A.  

Ensure full documentation of the control deficiency and close out the audit file

B.  

Follow up on the remediation status with business management periodically

C.  

Note this control area “audited” and mark it as out-of-scope for the following year

D.  

Design a remediation plan and ensure operational management follows through

Discussion 0
Question # 42

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

Options:

A.  

It easily aligns with existing internal audit competencies to reduce expenses

B.  

It provides a more holistic view of the audited area.

C.  

Its outcomes can be easily interpreted into audit: conclusions.

D.  

Its application increases internal auditors' adherence to the Standards

Discussion 0
Question # 43

Which of the following statements regarding flat and hierarchical internal audit functions is true?

Options:

A.  

A flat structure creates an internal audit function that is highly knowledgeable and collaborative

B.  

A hierarchical structure requires little supervision, and the work performed is consistent and reliable

C.  

A flat structure allows for growth within the function and leads to the cultivation of diverse skills and fresh perspectives

D.  

A hierarchical structure tends to result in a higher cost base due to higher salaries to retain auditors with high knowledge and experience

Discussion 0
Question # 44

According to IIA guidance on IT, which of the following strategies would provide the most effective access control over an automated point-of-sale system?

Options:

A.  

Install and update anti-virus software.

B.  

Implement data encryption techniques.

C.  

Set data availability by user need.

D.  

Upgrade firewall configuration

Discussion 0
Question # 45

Which of the following statements distinguishes a router from a typical switch?

Options:

A.  

A router operates at layer two. while a switch operates at layer three of the open systems interconnection model.

B.  

A router transmits data through frames, while a switch sends data through packets.

C.  

A router connects networks, while a switch connects devices within a network.

D.  

A router uses a media access control address during the transmission of data, whie a switch uses an internet protocol address.

Discussion 0
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