IIA-CIA-Part3-3P Exam Practice Test Instant Access

Question 1

Which of the following application software features is the least effective control to protect passwords?

ASuspension of user IDs after a user's repeated attempts to sign on with an invalid password.

BEncryption of passwords prior to their transmission or storage.

CForced change of passwords after a designated number of days.

DAutomatic logoff of inactive users after a specified time period of inactivity.

Answer : C

Question 2

For employees, the primary value of implementing job enrichment is which of the following?

AValidation of the achievement of their goals and objectives.

BIncreased knowledge through the performance of additional tasks.

CSupport for personal growth and a meaningful work experience.

DAn increased opportunity to manage better the work done by their subordinates.

Answer : C

Question 3

In which type of business environment are price cutting strategies and franchising strategies most appropriate?

AEmbryonic, focused.

BFragmented, decline.

CMature, fragmented.

DCompetitive, embryonic.

Answer : C

Question 4

Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

ATimes interest earned, return on assets, and inventory turnover.

BAccounts receivable turnover, inventory turnover in days, and the current ratio.

CAccounts receivable turnover, return on assets, and the current ratio.

DInventory turnover in days, the current ratio, and return on equity.

Answer : B

Question 5

An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

AHave to initiate a price war in order to enter the industry.

BFace increased production costs.

CFace increased marketing costs.

DFace higher learning costs, which would increase fixed costs.

Answer : C

Question 6

An organization uses a database management system (DBMS) as a repository for dat

a. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?

AEnd users have their read-only applications approved by the information systems department before accessing the database.

BConcurrency update controls are in place.

CEnd-user applications are developed on personal computers before being implemented on the
mainframe.

DA hierarchical database model is adopted so that multiple users can be served at the same time.

Answer : B

Question 7

Which of the following is the most likely reason an organization may decide to undertake a stock split?

ATo keep stock price constant.

BTo keep shareholders' equity constant.

CTo increase shareholders' equity.

DTo enhance the stock liquidity.

Answer : D

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