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IIA-CIA-Part3 Practice Questions

Internal Audit Function

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Question # 61

Which of the following practices impacts copyright issues related to the manufacturer of a smart device?

Options:

A.  

Session hijacking.

B.  

Jailbreaking

C.  

Eavesdropping,

D.  

Authentication.

Discussion 0
Question # 62

An internal auditor conducts a preliminary privacy and data protection risk assessment. Which of the following is the most essential question to start the assessment?

Options:

A.  

How does the cybersecurity unit investigate instances of data leakage or allegations?

B.  

What are potential fines applicable to the organization for data protection breaches?

C.  

What type of private data is collected and maintained by the organization?

D.  

In what instances is data pseudonymization is applied in the organization?

Discussion 0
Question # 63

An internal auditor has finalized an engagement of the vendor master file. The results of the current engagement do not differ significantly from that of last year, in which several significant weaknesses in internal controls were reported. The internal auditor states in the final communication that the internal controls are as effective as that of the previous year. Which of the following elements of quality of communication could be improved?

Options:

A.  

Conciseness

B.  

Constructiveness

C.  

Objectivity

D.  

Accuracy

Discussion 0
Question # 64

Which of the following types of accounts must be closed at the end of the period?

Options:

A.  

Income statement accounts.

B.  

Balance sheet accounts.

C.  

Permanent accounts.

D.  

Real accounts.

Discussion 0
Question # 65

A line on a spreadsheet includes an employee ' s name, date of hire, job title, and monthly salary. Which of the following correctly describes this line information?

Options:

A.  

Field.

B.  

File.

C.  

Record.

D.  

Database.

Discussion 0
Question # 66

When should the results of internal quality assessments be communicated to senior management and the board?

Options:

A.  

At least once every five years

B.  

At least annually

C.  

Periodically, at the discretion of the chief audit executive

D.  

Only after the results have been validated by an external assessment

Discussion 0
Question # 67

All of the following are possible explanations for a significant unfavorable material efficiency variance except:

Options:

A.  

Cutbacks in preventive maintenance.

B.  

An inadequately trained and supervised labor force.

C.  

A large number of rush orders.

D.  

Production of more units than planned for in the master budget.

Discussion 0
Question # 68

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
Question # 69

An internal audit uncovered high-risk issues that needed to be addressed by the organization. During the exit conference, the audit team discussed the high-risk issues with the manager responsible for addressing them. How should the chief audit executive respond if the manager agrees to correct the issues identified during the audit?

Options:

A.  

Include in the report that management has agreed to address the issue and set a date for follow-up

B.  

Include an assignment in the annual internal audit plan to perform a follow-up audit

C.  

Discuss the audit observation with senior management

D.  

Solicit input from management and create the action plan

Discussion 0
Question # 70

Data analysis indicates that a hospital pharmacy disbursed higher levels of controlled drugs than similar pharmacies in the area. The hospital ' s internal auditor discusses the risk with the head of the hospital pharmacy, who believes that the risk is appropriately mitigated by controls and feels comfortable with the number of prescriptions written.

What should the auditor do next?

Options:

A.  

Document that the head of the pharmacy has accepted the risk and believes it is sufficiently mitigated, and conclude the risk assessment.

B.  

Request that an independent third party re-perform the data analysis to verify the accuracy of the initial findings.

C.  

Investigate the risk by requesting pharmacy policies, procedures, and detailed reports.

D.  

Add an audit of the hospital pharmacy to the annual audit plan to fully investigate the risk later in the year.

Discussion 0
Question # 71

Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?

Options:

A.  

Borrowers may not sign all required mortgage loan documentation.

B.  

Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.

C.  

The bank ' s loan documentation may not meet the government ' s disclosure requirements.

D.  

Loan officers may override the lending criteria established by senior management.

Discussion 0
Question # 72

An organization produces two products, X and Y. The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed.

Individual product details are as follows:

Product X: Selling price per unit: $10; Materials per unit at $1/kg: 2 kg; Monthly demand: 100 units.

Product Y: Selling price per unit: $13; Materials per unit at $1/kg: 6 kg; Monthly demand: 120 units.

In order to maximize profit, how much of product Y should the organization produce each month?

Options:

A.  

50 units.

B.  

60 units.

C.  

100 units.

D.  

120 units.

Discussion 0
Question # 73

An organization has a declining inventory turnover but an Increasing gross margin rate, Which of the following statements can best explain this situation?

Options:

A.  

The organization ' s operating expenses are increasing.

B.  

The organization has adopted just-in-time inventory.

C.  

The organization is experiencing Inventory theft

D.  

The organization ' s inventory is overstated.

Discussion 0
Question # 74

Which of the following are likely indicators of ineffective change management?

    IT management is unable to predict how a change will impact interdependent systems or business processes.

    There have been significant increases in trouble calls or in support hours logged by programmers.

    There is a lack of turnover in the systems support and business analyst development groups.

    Emergency changes that bypass the normal control process frequently are deemed necessary.

Options:

A.  

1 and 3 only

B.  

2 and 4 only

C.  

1, 2, and 4 only

D.  

1, 2, 3, and 4

Discussion 0
Question # 75

An organization moving its sales conversion rate from 5% to 12% indicates which of the following?

Options:

A.  

Worse sales activity.

B.  

Better inventory usage.

C.  

Better sales activity.

D.  

Worse inventory usage.

Discussion 0
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