Prepare IIA-CIA-Part3 Exam Questions [2024] Recently Updated Questions [Q28-Q43]

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Prepare IIA-CIA-Part3 Exam Questions [2024] Recently Updated Questions

Give push to your success with IIA-CIA-Part3 exam questions

IIA-CIA-Part3 certification is widely recognized as a mark of excellence in the field of internal auditing. It demonstrates that the candidate has a deep understanding of business management concepts and knows how to apply them in the context of internal auditing. Business Knowledge for Internal Auditing certification is also a valuable asset for professionals seeking career advancement, as it is often required or preferred by employers in the field of internal auditing.

The International Institute of Internal Auditors (IIA) is a professional organization that provides certification programs for internal auditors around the world. One of its most popular certification exams is the IIA-CIA-Part3, which focuses on business knowledge for internal auditing. IIA-CIA-Part3 exam is designed to test the candidate’s understanding of business concepts and their ability to apply them in an internal audit context.

NEW QUESTION 28
The data below were gathered on two different machine centers and two products.

Which item below would be part of a linear programming formulation of this problem?

Maximize: Contribution 4A + 5B.

Subject to: A 0.

Subject to: 2.5A + 4B 60.

Subject to: 4A + 5B 130.

NEW QUESTION 29
Which one of the graphs depicts the demand curve for prestige goods?

Option A

Option B

Option C

Option D

NEW QUESTION 30
An audit manager has just returned from an executive training program and has suggested that the audit department develop a mathematical model to help identify factors that may be causing changes in the cost of production. According to the manager, the model should recognize that the company currently has three separate production (cost) centers.
Which of the following approaches would best provide the analysis suggested by the audit manager?

Develop a classical variables sampling estimate of cost of production per department, with the sample stratified by the dollar value of each product produced.

Develop a 3-year ratio analysis of the cost of production compared to the cost of raw inventory across the three departments.

Develop a multiple regression analysis of production costs, including such variables as raw material inventory costs, number of employees in the department, and overtime pay.

Develop a linear regression analysis relating the cost of production to the cost of goods sold.

NEW QUESTION 31
At what point during the systems development process should an internal auditor verify that the new application’s connectivity to the organization’s other systems has been established correctly?

Prior to testing the new application.

During testing of the new application.

During implementation of the new application.

During maintenance of the new application.

NEW QUESTION 32
A company plans to implement a bonus plan based on segment performance. In addition, the company plans to convert to a responsibility accounting system for segment reporting. The following costs which have been included in the segment performance reports that
have been prepared under the current system are being reviewed to determine if they should be included in the responsibility accounting segment reports:
I. Corporate administrative costs allocated on the basis of net segment sales.
II. Personnel costs assigned on the basis of the number of employees in each segment
III. Fixed computer facility costs divided equally among each segment
IV.
Variable computer operational costs charged to each segment based on actual hours used times a predetermined standard rate; any variable cost efficiency or inefficiency remains in the computer department. Of these four cost items, the only item that could logically be included in the segment performance reports prepared on a responsibility accounting basis would be the

Corporate administrative costs.

Personnel costs.

Fixed computer facility costs_

Variable computer operational costs.

NEW QUESTION 33
The most important reason to use risk assessment in audit planning is to:

Identify redundant controls.

Improve budgeting accuracy.

Enhance assurance provided to management.

Assist in developing audit programs.

NEW QUESTION 34
Authentication is the process by which the:

System verifies that the user is entitled to enter the transaction requested.

System verifies the identity of the user.

User identifies him/herself to the system.

User indicates to the system that the transaction was processed correctly.

NEW QUESTION 35
Which of the following application-based controls is an example of a programmed edit check?

Reasonableness check.

Transaction log.

Input error correction.

Authorization for access.

NEW QUESTION 36
An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the dat a. Which of me following statements is true regarding this scenario?

The auditor is normalizing data in preparation for analyzing it

The auditor is analyzing the data m preparation for communicating the results

The auditor is cleaning the data in preparation for determining which processes may tie involved

The auditor is reviewing the data prior lo defining the question

NEW QUESTION 37
If electronic funds transfer EFT) is used to pay vendor invoices, which of the following computer-assisted audit procedures would an auditor use to determine if any payments were made twice?
I. Testing of EFT transactions for reasonableness.
II. Identification of EFT transactions to the same vendor for the same dollar amount.
III. Extraction of EFT transactions with unauthorized vendor codes.
IV.
Searching for EFT transactions with duplicate purchase order numbers.

I and II only.

I and IV only.

II and Ill only.

III and IV only.

NEW QUESTION 38
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

Use an aging schedule to more closely estimate uncollectible accounts.

Eliminate the need for an allowance for doubtful accounts.

Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.

Use a method that approximates the matching principle.

NEW QUESTION 39
Electronic data interchange EDI) offers significant benefits to organizations, but it is not without certain major obstacles. Successful EDI implementation begins with which of the
following?

Mapping the work processes and flows that support the organization’s goals.

Purchasing new hardware for the EDI system.

Selecting reliable vendors for translation and communication software.

Standardizing transaction formats and data.

NEW QUESTION 40
Which of the following best describes an objective for an audit of an environmental management system?

To assess whether an annual control review is necessary.

To determine conformance with requirements and agreements.

To evaluate executive management oversight.

To promote environmental awareness.

NEW QUESTION 41
An organization has a complex systems infrastructure consisting of multiple internally developed, off the shelf, and purchased but significantly customized applications. Some of these applications share databases or process data that is used by another stand-alone application, and interfaces have been written to move data between these applications as needed through batch processing Which of the following situations presents the greatest risk exposure given this environment?

Documentation of each system and its interactions, interfaces, and dependencies with other systems and databases is not gathered and maintained.

Batch processing jobs include key financial data that is not posted to the accounting system until the next day. preventing real-time queries.

The job scheduling tool frequently malfunctions, causing scheduled jobs not to run. An error message is sent to IT personnel when a job fails.

The implementation of a major update for a key application is delayed until any potential interdependencies are identified and analyzed.

NEW QUESTION 42
Which of the following is a logical access control designed to enhance the security of a computer-based application system?

User accounts will be locked alter three unsuccessful attempts to access the system

Users will not be allowed to use any of their last five passwords to access the system

Users will be assigned rights to access the system based on their job responsibilities

Users will automatically lose access to the system after 15 minutes of inactivity

NEW QUESTION 43
Which of the following would not impair the objectivity of internal auditor?

Management assurance on risks.

Implementing risk responses on behalf of management.

Providing assurance that risks assessed are correctly evaluated.

Setting the risk appetite.

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