Weekend Sale Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: xmas50

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

IIA IIA-CIA-Part3-3P Premium Access     Download Demo    
Page: 14 / 15
Total 488 questions

At a manufacturing plant, how would using Internet of Things during the production process benefit the organization?

A.

It would provide the ability to monitor in real-time.

B.

It would assist in securing sensitive data.

C.

It would help detect cyberattacks in a more timely fashion.

D.

It would assist in ensuring that data integrity is maintained.

Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?

A.

A contract is a tool used by both suppliers and customers, the model and complexity of which generally remains constant

B.

Collaboration during contract negotiation encourages stakeholders to develop consensus but typically increases cycle times and the likelihood that the contract will fail

C.

Differing legal requirements affect the attitudes of contracting parties as well as the length content and language of contracts

D.

A contract is a tool used by both suppliers and customers though it offers commercial assurance of the relationship, purely from a customer perspective

According to Maslow's hierarchy of needs theory, which of the Mowing best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

A.

Esteem by colleagues

B.

Sell-fulfillment

C.

Sense of belonging in the organization

D.

Job security

Which of the following describes a third-party network that connects an organization specifically with its trading partners?

A.

Value-added network (VAN).

B.

Local area network (LAN).

C.

Metropolitan area network (MAN).

D.

Wide area network (WAN).

Which of the following financial instruments should be recorded at fair market value on the financial statements?

A.

Accounts receivable in the short term

B.

Bonds to be held to maturity.

C.

Notes receivable in the short term

D.

Bonds to be held for sale in the short term.

An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?

A.

The capital accounts of the partners should be increased by the original cost of the contributed equipment.

B.

The capital accounts should be increased using a weighted average based on the current percentage of ownership

C.

No action is needed as the capital account of each partner was increased by the correct amount

D.

The capital accounts of the partners should be increased by the fair market value of their contribution

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 data. Which of me following statements is true regarding this scenario?

A.

The auditor is normalizing data in preparation for analyzing it

B.

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

C.

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

D.

The auditor is reviewing the data prior to defining the question

When using data analytics during a review of the procurement process what is the first step in the analysis process?

A.

Identity data anomalies and outliers

B.

Define questions to be answered

C.

identify data sources available

D.

Determine the scope of the data extract

Which of the following can be classified as debt investments?

A.

Investments in the capital stock of a corporation.

B.

Acquisition of government bonds.

C.

Contents of an investment portfolio.

D.

Acquisition of common of a stock corporation.

An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

A.

Hardware encryption.

B.

Software encryption

C.

Data encryption.

D.

Authentication.