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05/04/2024 7:51 am
Free IIA IIA-CIA-Part3-3P Dumps are shared online. You can view and discuss IIA IIA-CIA-Part3-3P questions and answers for free below. FreeCIA Exam Part Three: Business Knowledge for Internal Auditing Exam Questions.
05/04/2024 7:51 am
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.
Suggested Answer: D
05/04/2024 7:51 am
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
Suggested Answer: C
05/04/2024 7:51 am
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.
Suggested Answer: D
05/04/2024 7:51 am
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.
Suggested Answer: D
05/04/2024 7:51 am
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.
Suggested Answer: C
05/04/2024 7:51 am
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
Suggested Answer: B
05/04/2024 7:51 am
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.
Suggested Answer: C
05/04/2024 7:51 am
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.
Suggested Answer: D
05/04/2024 7:51 am
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.
Suggested Answer: D
05/04/2024 7:51 am
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
Suggested Answer: A
05/04/2024 7:51 am
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 . There is an external market for that service.
- B . The selling department operates at 50 percent of its capacity.
- C . The purchasing department has more negotiating power than the selling department.
- D . There is no external market for that service.
Suggested Answer: A
05/04/2024 7:51 am
Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?
- A . Increasing complexity over time.
- B . Interface with corporate systems.
- C . Ability to meet user needs.
- D . Hidden data columns or worksheets.
Suggested Answer: C
05/04/2024 7:51 am
Which stage of group development is characterized by a decrease in conflict and hostility among group members and an increase in cohesiveness?
- A . Forming stage.
- B . Norming stage.
- C . Performing stage.
- D . Storming stage.
Suggested Answer: B
05/04/2024 7:51 am
Which of the following is a role of the board of directors in the governance process?
- A . Conduct periodic assessments of the organization's governance systems.
- B . Obtain assurance concerning the effectiveness of the organization's governance systems.
- C . Implement an effective system of internal controls to support the organization's governance systems.
- D . Review and approve operational goals and objectives.
Suggested Answer: B
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