IIA-CIA-Part3 Exam Questions Instant Access

Question 1

Which observations should the chief audit executive include in the executive summary of the final engagement communication?

AAll observations

BOnly observations with an action plan

COnly significant observations

DOnly observations agreed with management

Answer : C

The executive summary of the final audit report is intended for senior management and the board, who require a high-level overview of critical matters. Therefore, it should focus on significant observations that represent key risks, issues, or deficiencies.

Option A (all observations) makes the summary cluttered. Option B is incomplete since some significant issues may not yet have action plans. Option D would suppress important issues that management disagreed with.

IIA Standards -- Standard 2410: Criteria for Communicating.

Question 2

Which of the following is a security feature that involves the use of hardware and software to filter or prevent specific information from moving between the inside network and the outside network?

AAuthorization

BArchitecture model

CFirewall

DVirtual private network

Answer : C

Question 3

Management is designing its disaster recovery plan. In the event that there is significant damage to the organization's IT systems this plan should enable the organization to resume operations at a recovery site after some configuration and data restoration. Which of the following is the ideal solution for management in this scenario?

AA warm recovery plan.

BA cold recovery plan.

CA hot recovery plan.

DA manual work processes plan

Answer : A

A disaster recovery plan (DRP) ensures that an organization can restore operations after a major IT system failure. The level of readiness depends on the type of recovery site used:

Correct Answer (A - A Warm Recovery Plan)

A warm site is a partially configured recovery site with some hardware and network infrastructure in place.

In the event of a disaster, some configuration and data restoration are required before full operation can resume.

This solution balances cost and recovery speed, making it ideal for moderate-risk scenarios.

The IIA GTAG 10: Business Continuity Management discusses warm sites as an effective disaster recovery solution.

Why Other Options Are Incorrect:

Option B (A Cold Recovery Plan):

A cold site has minimal infrastructure and requires significant time for setup and data restoration.

This is not ideal for organizations needing faster recovery.

Option C (A Hot Recovery Plan):

A hot site is a fully operational backup system that allows instant recovery, but it is very costly.

The scenario mentions 'some configuration and data restoration', which suggests a warm site, not a hot site.

Option D (A Manual Work Processes Plan):

A manual plan involves non-IT solutions, which would not address IT system restoration.

IIA GTAG 10: Business Continuity Management -- Describes warm, cold, and hot sites for disaster recovery.

IIA Practice Guide: Auditing Business Continuity Plans -- Recommends warm recovery sites for balancing cost and recovery time.

Step-by-Step IIA Reference for Validation:Thus, A is the correct answer because a warm recovery plan allows partial system readiness with minimal downtime.

Question 4

Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

ALogical access controls monitor application usage and generate audit trails.

BThe development process is designed to prevent, detect, and correct errors that may occur.

CA record is maintained to track the process of data from input, to output, to storage.

DBusiness users' requirements are documented, and their achievement is monitored.

Answer : B

Comprehensive and Detailed In-Depth

In the context of in-house application system development, establishing a robust development process is crucial. Such a process is designed to prevent, detect, and correct errors that may occur during development and implementation. This includes implementing coding standards, conducting regular code reviews, and performing comprehensive testing phases (unit, integration, system, and user acceptance testing) to identify and rectify errors promptly. While logical access controls (option A) and maintaining records of data processing (option C) are essential, they pertain more to operational controls post-development. Documenting business users' requirements (option D) is a critical initial step; however, without a development process focused on error management, merely documenting requirements doesn't ensure error prevention or correction. Therefore, option B best exemplifies a key systems development control in this context.

Question 5

According to IIA guidance on IT, which of the following best describes a situation where data backup plans exist to ensure that critical data can be restored at some point in the future, but recovery and restore processes have not been defined?

AHot recovery plan

BWarm recovery plan

CCold plan

DAbsence of recovery plan

Answer : C

Question 6

When auditing databases, which of the following risks would an Internal auditor keep In mind In relation to database administrators?

AThe risk that database administrators will disagree with temporarily preventing user access to the database for auditing purposes.

BThe risk that database administrators do not receive new patches from vendors that support database software in a timely fashion.

CThe risk that database administrators set up personalized accounts for themselves, making the audit time consuming.

DThe risk that database administrators could make hidden changes using privileged access.

Answer : D

Database administrators (DBAs) have privileged access, meaning they can make unauthorized or hidden changes to data, database structures, and security settings without detection. This presents a high risk of fraud, data manipulation, and security breaches.

A . The risk that database administrators will disagree with temporarily preventing user access to the database for auditing purposes. (Incorrect)

While resistance from DBAs during an audit can be a challenge, it is not a significant risk compared to the ability to manipulate data unnoticed.

B . The risk that database administrators do not receive new patches from vendors that support database software in a timely fashion. (Incorrect)

Patch management is a security concern but does not directly relate to the unique risk of DBAs abusing privileged access.

C . The risk that database administrators set up personalized accounts for themselves, making the audit time-consuming. (Incorrect)

While personal accounts can complicate audits, the greater risk is that DBAs can make changes without detection.

IIA GTAG 4 -- Management of IT Auditing emphasizes the need for controls over privileged access to prevent unauthorized database modifications.

IIA Standard 2110 -- Governance requires internal auditors to assess risks related to IT governance and privileged access management.

IIA GTAG 8 -- Auditing Application Controls highlights that auditors must review DBA activity logs and ensure segregation of duties.

Explanation of Answer Choices:IIA Reference:Thus, the correct answer is D. The risk that database administrators could make hidden changes using privileged access.

Question 7

Which of the following best describes the chief audit executive's responsibility for assessing the organization's residual risk?

ACreate an action plan to mitigate the risk

BIncorporate management acceptance of risk in the workpapers as internal audit evidence

CReport deviations immediately to the board

DCommunicate the matter with senior management

Answer : D

The CAE's role is to provide assurance that risks are identified and managed appropriately. When residual risk appears to exceed the organization's tolerance, the CAE should first communicate the matter with senior management to discuss the issue and understand management's acceptance of risk. Only if the risk remains unresolved should it be escalated to the board.

Option A is management's responsibility, not internal audit's. Option B is incomplete as evidence alone does not fulfill the communication requirement. Option C is premature because immediate escalation to the board skips management dialogue.

IIA Standards -- Standard 2600: Communicating the Acceptance of Risks.

IIA Certified Internal Auditor-Internal Audit Knowledge Elements IIA-CIA-Part3 Exam Questions