IIA-CIA-Part3-3P Exam Training Practice Tests (IIA CIA Exam Part Three: Business Knowledge for Internal Auditing)]

Question 1

When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?

A. When an organization is infrequently affected by technological advances B. When a manufacturer has reliable resources and suppliers C. When a manufacturing organization has stable demand for its products. D. When an organization is subjected to strong political and social pressures

Correct Answer: A

Question 2

The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:

A. The purchasing department has more negotiating power than the selling department. B. There is no external market for that service. C. The selling department operates at 50 percent of its capacity. D. There is an external market for that service.

Correct Answer: D

Question 3

The cost to enter a foreign market would be highest in which of the following methods of global expansion?

A. Licensing. B. Overseas production. C. Joint ventures. D. Exporting.

Correct Answer: B

Question 4

Which of the following control features consists of a set of authorization codes that distinguishes among actions such as reading, adding, and deleting records?

A. System access privileges. B. Protocol controls. C. Logon passwords D. Internally encrypted passwords

Correct Answer: A

Question 5

An internal auditor is reviewing the organization's performance appraisal process. Which of the following methods would be most effective to identify stereotyping?

A. Analyze and compare the ratings for different classes or groupings of employees. B. Compare the ratings of selective employees with their previous appraisals. C. Use a behaviorally anchored rating scale to Break down jobs into their components. D. Analyze the number and percentages of employee appraisals that fall into each rating category

Correct Answer: B

Question 6

Which of the following statements is true regarding user-developed applications (UDAs)?

A. Updating UDAs may lead to various errors resulting from changes or corrections. B. UDAs typically are subjected to application development and change management controls. C. Using UDAs typically enhances the organization's ability to comply with regulatory factors. D. UDAs are less flexible and more difficult to configure than traditional IT applications.

Correct Answer: A

Question 7

When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

A. Each nation's total imports approximately equal its total exports. B. Each good is produced by the nation that has the lowest opportunity cost for that good. C. International trade is unrestricted and tariffs are not imposed. D. Goods that contribute to a nation's balance-of-payments deficit are no longer imported.

Correct Answer: B

Question 8

An internal auditor observed that the organization's disaster recovery solution will make use of a code site in a town several miles away Which of the following is likely to be a characteristic of this disaster recovery solution?

A. Recovery time is expected to be less than one week B. Servers are not available and need to be procured C. Recovery resources and data restore processes have not been defined D. Data is synchronized in real lime

Correct Answer: B

Question 9

An organization's board of directors is particularly focused on positioning the organization as a leader in the industry and beating the competition.
Which of the following strategies offers the greatest alignment with the board's focus?

A. Relocating the organization's manufacturing to another country. B. Increasing the diversity of strategic business units. C. Divesting product lines expected to have negative profitability. D. Increasing investment in research and development for a new product.

Correct Answer: B

IIA CIA Exam Part Three: Business Knowledge for Internal Auditing - IIA-CIA-Part3-3P Exam Practice Test