IIA IIA-CIA-Part3-3P CIA Exam Part Three: Business Knowledge for Internal Auditing Online Training
IIA IIA-CIA-Part3-3P Online Training
The questions for IIA-CIA-Part3-3P were last updated at Nov 19,2024.
- Exam Code: IIA-CIA-Part3-3P
- Exam Name: CIA Exam Part Three: Business Knowledge for Internal Auditing
- Certification Provider: IIA
- Latest update: Nov 19,2024
If a bank’s activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?
- A . Product departmentalization.
- B . Process departmentalization.
- C . Functional departmentalization.
- D . Customer departmentalization.
What must be monitored in order to manage risk of consumer product inventory obsolescence?
1) Inventory balances.
2) Market share forecasts.
3) Sales returns.
4) Sales trends.
- A . 1 only
- B . 4 only
- C . 1 and 4 only
- D . 1, 2, and 3 only
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?
- A . Fixed cost.
- B . Variable cost.
- C . Total maintenance cost.
- D . Patient days.
An internal auditor is reviewing physical and environmental controls for an IT organization .
Which control activity should not be part of this review?
- A . Develop and test the organization’s disaster recovery plan.
- B . Install and test fire detection and suppression equipment.
- C . Restrict access to tangible IT resources.
- D . Ensure that at least one developer has access to both systems and operations.
Preferred stock is less risky for investors than is common stock because:
- A . Common stock pays dividends as a stated percentage of face value.
- B . Common stock has priority over preferred stock with regard to earnings and assets.
- C . Preferred dividends are usually cumulative.
- D . Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.
Which of the following are appropriate reasons for internal auditors to document processes as part of an audit engagement?
1) To determine areas of primary concern.
2) To establish a standard format for process mapping.
3) To define areas of responsibility within the organization.
4) To assess the performance of employees.
- A . 1 and 2 only
- B . 1 and 3 only
- C . 2 and 3 only
- D . 2 and 4 only
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?
- A . Interviewing the organization’s employees.
- B . Observing the organization’s operations.
- C . Reading the board’s minutes.
- D . Inspecting manuals and documents.
Which of the following statements is true regarding the relationship between an individual’s average tax rate and marginal tax rate?
- A . In a regressive personal tax system, an individual’s marginal tax rate is normally greater than his average tax rate.
- B . In a regressive personal tax system, an individual’s marginal tax rate is normally equal to his average tax rate.
- C . In a progressive personal tax system, an individual’s marginal tax rate is normally equal to his average tax rate.
- D . In a progressive personal tax system, an individual’s marginal tax rate is normally greater than his average tax rate.
Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?
- A . PKI uses an independent administrator to manage the public key.
- B . The public key is authenticated against reliable third-party identification.
- C . PKI’s public accessibility allows it to be used readily for e-commerce.
- D . The private key uniquely authenticates each party to a transaction.
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:
- A . $100
- B . $200
- C . $300
- D . $500
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