IIA-CIA-Part3-3P Exam Questions Instant Access

Question 1

A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.

Which of the following organizational structures does this situation represent?

AFunctional departmentalization.

BProduct departmentalization.

CMatrix organization.

DDivisional organization.

Answer : A

Question 2

Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

AElectronic funds transfer.

BKnowledge-based systems.

CBiometrics.

DStandardized graphical user interface.

Answer : A

Question 3

According to IIA guidance, which of the following best describes the activities that occur during the conversion phase of an IT project?

AConversion of user requirements into system specifications

BConversion of user requirements into program codes

CConversion of test data into production data

DConversion of data from the old system into the new system

Answer : D

Question 4

Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

ABoth the key used to encrypt the data and the key used to decrypt the data are made public.

BThe key used to encrypt the data is kept private but the key used to decrypt the data is made public.

CThe key used to encrypt the data is made public but the key used to decrypt the data is kept private.

DBoth the key used to encrypt the data and the key used to decrypt the data are made private.

Answer : C

Question 5

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

AA tougher collections policy that reduces the bad debt loss ratio.

BA higher cost per unit sold.

CA longer average collection period.

DAn increase in the cost of capital.

Answer : A

Question 6

Which of the following are typical audit considerations for a review of authentication?

1) Authentication policies and evaluation of controls transactions.

2) Management of passwords, independent reconciliation, and audit trail.

3) Control self-assessment tools used by management.

4) Independent verification of data integrity and accuracy.

A1, 2, and 3

B1, 2, and 4

C1, 3, and 4

D2, 3, and 4

Answer : A

Question 7

An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?

AAvoidance.

BReduction.

CElimination.

DSharing.

Answer : B

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