[2023] Use Valid New Free IIA-CIA-Part3-3P Exam Dumps & Answers [Q134-Q152]

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[2023] Use Valid New Free IIA-CIA-Part3-3P Exam Dumps & Answers

IIA-CIA-Part3-3P Braindumps PDF, IIA IIA-CIA-Part3-3P Exam Cram

IIA-CIA-Part3-3P exam is an essential certification for professionals who want to demonstrate their expertise in business knowledge for internal auditing. CIA Exam Part Three: Business Knowledge for Internal Auditing certification is recognized worldwide and is highly valued by employers. Candidates who pass the exam will have a deep understanding of business processes, financial management, organizational structure, and risk management, which are essential skills for internal auditors.

NO.134 While reviewing the contracts for a large city, the internal auditor learns that the organization contracted to perform trash collection is paid based on the number of bins emptied each week as a result, the city has minimal control over payments Which of the following actions should the auditor recommend to give the city greater control over payments?

Change the contract so payment is based on the distances traveled by the contractor during collection.

Renegotiate a lump-sum contract when the contract is up for renewal

Assign a city employee to verify the number of bins emptied each day

Require that the contractor provide supervisory review of the number of bins emptied each day

NO.135 Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA’s Standards is applicable to a specific engagement?

The internal auditor may cite the use of other standards during audit communications.

If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA’s Standards.

If there are inconsistencies between the other standards and The IIA’s Standards, the internal auditor must use the more restrictive standards.

If there are inconsistencies between the other standards and The IIA’s Standards, the internal auditor must use the less restrictive standards.

NO.136 Which of following best demonstrates the application of the cost principle?

A building purchased last year for $1 million is currently worth $1.2 million, and the company adjusts the records to reflect the current value.

A company reports assets at either historical or fair value, depending which is closer to market value.

A company reports trading and investment securities at their market cost.

A building purchased last year for $1 million is currently worth $1.2 million, but the company still reports the building at $1 million.

NO.137 When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

Each nation’s total imports approximately equal its total exports.

Each good is produced by the nation that has the lowest opportunity cost for that good.

Goods that contribute to a nation’s balance-of-payments deficit are no longer imported.

International trade is unrestricted and tariffs are not imposed.

NO.138 When using cost-volume-profit analysts which of the following will increase operating income once the break-even point has been reached?

Fixed costs per unit for each additional unit sold

Variable costs per unit for each additional unit sold

Contribution margin per unit for each additional unit sold

Gross margin per unit for each additional unit sold

NO.139 An organization is considering the outsourcing of its business processes related to payroll and information technology functions. Which of the following is the most significant area of concern for management regarding this proposed agreement?

Ensuring that payments to the vendor are appropriate and timely for the services delivered.

Ensuring that the vendor has complete management control of the outsourced process.

Ensuring that there are means of monitoring the efficiency of the outsourced process.

Ensuring that there are means of monitoring the effectiveness of the outsourced process.

NO.140 Which of the following statements best describes the frameworks set forth by the International Standards Organization?

Globally accepted standards for industries and processes.

Bridging the gaps among control requirements, technical issues, and business risks.

Practical guidance and benchmarks for all organizations that use information systems.

Frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.

NO.141 Organizational activities that complement each other and create a competitive advantage are called a:

Merger.

Strategic fit.

Joint venture.

Strategic goal.

NO.142 An internal auditor is trying to assess control risk and the effectiveness of an organization’s internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?

Interviewing the organization’s employees.

Observing the organization’s operations.

Reading the board’s minutes.

Inspecting manuals and documents.

NO.143 Which of the following are the most common characteristics of big data?

Visibility, validity, vulnerability

Velocity, variety volume.

Complexity completeness constancy

Continuity, control convenience

NO.144 Which of the following is a limiting factor for capacity expansion?

Government pressure on organizations to increase or maintain employment.

Production orientation of management.

Lack of credible market leader in the industry.

Company diversification.

NO.145 Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?

Attribute theory.

Path goal model

Life cycle model

Contingency theory

NO.146 Which of the following is most important for an internal auditor to check with regard to the database version?

Verify whether the organization uses the most recent database software version

Verify whether the database software version is supported by the vendor.

Verify whether the database software version has been recently upgraded

Verify whether access to database version information is appropriately restricted

NO.147 Which of the following steps should an internal auditor take during an audit of an organization’s business continuity plans?
1) Evaluate the business continuity plans for adequacy and currency.
2) Prepare a business impact analysis regarding the loss of critical business.
3) Identify key personnel who will be required to implement the plans.
4) Identify and prioritize the resources required to support critical business processes.

1 only

2 and 4 only

1, 3, and 4 only

1, 2, 3, and 4

NO.148 Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level –
Maintenance Cost
Month
Patient Days
January
5,600
$7,900
February
7,100
$8,500
March
5,000
$7,400
April
6,500
$8,200
May
7,300
$9,100
June
8,000
$9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

Fixed cost.

Variable cost.

Total maintenance cost.

Patient days.

NO.149 The main reason to establish internal controls in an organization is to:

Encourage compliance with policies and procedures.

Safeguard the resources of the organization.

Ensure the accuracy, reliability, and timeliness of information.

Provide reasonable assurance on the achievement of objectives.

NO.150 Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?

The risk that users try to bypass controls and do not install required software updates.

The risk that smart devices can be lost or stolen due to their mobile nature.

The risk that an organization intrusively monitors personal information stored on smart devices.

The risk that proprietary information is not deleted from the device when an employee leaves.

NO.151 Which of the following are typical responsibilities for operational management within a risk management program?
1) Implementing corrective actions to address process deficiencies.
2) Identifying shifts in the organization’s risk management environment.
3)( Providing guidance and training on risk management processes.
4) Assessing the impact of mitigation strategies and activities.

1 and 2 only

1 and 4 only

2 and 3 only

3 and 4 only

NO.152 Which of the following activities best illustrates a user’s authentication control?

Identity requests are approved in two steps.

Logs are checked for misaligned identities and access rights.

Functions can be performed based on access rights.

Users have to validate their identity with a smart card.

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