CIA Exam Part Three: Business Knowledge for Internal Auditing

Question 1

Which of the following statements about COBIT is not true?

A. COBIT control objectives are specific to various IT platforms and help determine minimum controls.

B. COBIT helps management understand and manage the risks associated with information technology (IT) processes.

C. COBIT provides management with the capability to conduct self-assessments against industry best practices.

D. Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.

Correct Answer: A

Question 2

Which of the following is accurate regarding help desk service providers?

A. Performance results, deficiencies, and remediation should not be used as criteria for ongoing vendor evaluation.

B. Turn-around time cannot always be defined for each level of service in complex environments.

C. Ongoing monitoring procedures that measure and compare actual performance to the expected service-level parameters must be set by the service provider.

D. Any problems troubleshooting can be categorized as a help desk service.

Correct Answer: C

Question 3

Data encryption is an example of which of the following controls?

A. Data input control

B. IT general control

C. Data output control

D. Application control.

Correct Answer: C

Question 4

Which of the following statements is true regarding the risks associated with the increased use of smart devices at work?

A. Due to their small size and portability smart devices and their associated data are typically less susceptible to physical loss

B. When the user fads to perform jailbreaking or rooting, data security and privacy risks we increased

C. The Bluetooth and WI-FI features of smart devices enhance the security of data while in transit

D. The global positioning system (GPS) capability of smart devices could be exploited to plan cyberattacks

Correct Answer: D

Question 5

Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?

A. Contingency theory

B. Life cycle model

C. Attribute theory.

D. Path goal model

Correct Answer: A

Question 6

Which of the following analytical techniques would an internal auditor use to verify that none of an organization's employees are receiving fraudulent invoice payments?

A. Perform gap testing.

B. Join different data sources.

C. Calculate statistical parameters.

D. Perform duplicate testing.

Correct Answer: C

Question 7

An organization's account for office supplies on hand had a balance of S9,000 at the end of year one. During year two. the organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?

A. A debit to office supplies on hand for S42.500

B. A debit to office supplies on hand for S20.500

C. A debit to office supplies on hand for $11,500

D. A debit to office supplies on hand for S2.500

Correct Answer: D

Question 8

Which of the following attributes of data is the most significantly impacted by the internet of things?

A. Structurization.

B. Velocity.

C. Veracity.

D. Normalization.

Correct Answer: A

Question 9

Which of the following bring-your-own-device (BYOD) practices is likely to increase the risk of infringement on local regulations such as copyright or privacy laws?

A. Updating operating software in a haphazard manner

B. Applying a weak password for access to a mobile device

C. Jailbreaking a locked smart device.

D. Not installing anti-malware software

Correct Answer: C

Question 10

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?
1) It significantly raises compensation and staffing costs.
2) It produces resentment among the organization's employees in host countries.
3) It limits career mobility for parent-country nationals.
4) It can lead to cultural myopia.

A. 1 and 4 only

B. 1, 2, and 4 only

C. 1, 2, and 3 only

D. 2 and 3 only

Correct Answer: B

Question 11

An organization is considering outsourcing its IT services, and the internal auditor is assessing the related risks. The auditor grouped the related risks into three categories:
Risks specific to the organization itself.
Risks specific to the service provider.
Risks shared by both the organization and the service provider.
Which of the following risks should the auditor classify as specific to the service provider?

A. Loss of data privacy.

B. Unexpected increases in outsourcing costs.

C. Inadequate staffing.

D. Violation of contractual terms.

Correct Answer: A

Question 12

An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement. Which of the following approaches is most appropriate to address this concern?

A. The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.

B. The organization should work with the service provider to review the current agreement and

C. The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.

D. The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.

Correct Answer: D

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Question 13

Which of the following characteristics is most important specifically for a global manager to possess in order to be successful?

A. Understanding of uncertainty avoidance differences

B. Emotional intelligence

C. Knowledge of different languages.

D. Cultural intelligence

Correct Answer: D

Question 14

Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?

A. Use of a formal systems development lifecycle.

B. Adequate software documentation.

C. End-user involvement.

D. Formalized non-regression testing phase.

Correct Answer: C

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

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