Practice IIA-CIA-Part3 Exam Online

Question 1

According to IIA guidance, which of the following statements is true regarding analytical procedures?

A : Data relationships are assumed to exist and to continue where no known conflicting conditions exist.

B : Analytical procedures are intended primarily to ensure the accuracy of the information being examined.

C : Data relationships cannot include comparisons between operational and statistical data.

D : Analytical procedures can be used to identify unexpected differences, but cannot be used to identify the absence of differences.

Answer: B

Question 2

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

A : Joint ventures.

B : Licensing.

C : Exporting.

D : Overseas production.

Answer: D

Question 3

An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?

A : 7 percent simple interest with a 10 percent compensating balance.

B : 7 percent simple interest paid at the end of each year.

C : 7 percent discount interest.

D : 7 percent compounding interest.

Answer: B

Question 4

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?

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

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

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

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

Answer: D

Question 5

The audit committee of a global corporation has mandated a change in the organization's business ethics policy. Which of the following approaches describes the best way to accomplish the policy's diffusion worldwide?

A : Deploy the policy in the corporate headquarters' language, so everyone gets an unfiltered version simultaneously.

B : Introduce the policy region by region, using any lessons learned to change the subsequent version of the policy for the next area.

C : Consult with legal and operational management in each affected country to ensure the final version can be implemented globally, following audit committee approval.

D : Send the board-approved version of the policy to each country's senior leadership, and empower them to tailor the policy to the local language and culture.

Answer: C

Name:	Business Knowledge for Internal Auditing
Exam Code:	IIA-CIA-Part3
Certification:	Certified Internal Auditor
Vendor:	IIA
Total Questions:	628
Last Updated:	May 02, 2024

IIA IIA-CIA-Part3