IIA-CIA-Part3 Practice Questions

A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:

A third party who provides payroll services to the organization was asked to create audit or “read-only 1 functionalities in their systems. Which of the following statements is true regarding this request?

The chief audit executive (CAE) and management of the area under review disagree over managing a significant risk item. According to IIA guidance, which of the following actions should the CAE take first?

Which of the following controls would enable management to receive timely feedback and help mitigate unforeseen risks?

An organization has decided to allow its managers to use their own smart phones at work. With this change, which of the following is most important to Include In the IT department ' s comprehensive policies and procedures?

An organization’s income and retained earnings statement is as follows:

Sales: $3,000

Cost of goods sold: $1,600

Gross profit: $1,400

Operating expenses: $970

Operating income: $430

Interest expense: $30

Income before tax: $400

Income tax: $200

Net income: $200

Plus Jan. 1 retained earnings: $150

Less dividends: $60

Dec. 31 retained earnings: $290

Which of the following is the dividend payout ratio?

A organization finalized a contract in which a vendor is expected to design, procure, and construct a power substation for $3,000,000. In this scenario, the organization agreed to which of the following types of contracts?

The internal audit function for a large organization has commenced this year’s scheduled accounts payable audit. The annual external audit for the organization is currently being planned. Can the external auditors place reliance on the work performed by the internal audit function?

During a routine bank branch audit, the internal audit function observed that the sole security guard at the branch only worked part time. The chief audit executive (CAE) believed that this increased the risk of loss of property and life in the event of a robbery. The branch security manager informed the CAE that a full-time guard was not needed because the branch was in close proximity to a police station. Still, the CAE found this to be an unacceptable risk due to the recent increase in robberies in that area. Which of the following is the most appropriate next step for the CAE to take?

Which of the following information security controls has the primary function of preventing unauthorized outside users from accessing an organization ' s data through the organization ' s network?

Internal audit discovered that several loads of pellets were deleted from the scaling database and consequently had no sales invoices, significantly affecting financial statements. An investigation revealed that technicians had deleted the pellet loads accidentally, with no evidence of fraud. Which of the following actions should management implement first?

Which of the following biometric access controls uses the most unique human recognition characteristic?

A manager who is authorized to make purchases up to a certain dollar amount approves the set-up of a fictitious vendor and subsequently initiates purchase orders. Which of the following controls would best address this risk?

Which of the following physical security controls would most likely be used as a corrective control?

According to Herzberg ' s Two-Factor Theory of Motivation, which of the following factors arc mentioned most often by satisfied employees?