IIA-CIA-Part3 IIA Exam Questions and Free Practice Test

Question 25

- (Exam Topic 1)
At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?

A. Prior to testing the new application.

B. During testing of the new application.

C. During implementation of the new application.

D. During maintenance of the new application.

Correct Answer:A

Question 26

- (Exam Topic 1)
Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?
* 1. Encryption.
* 2. Traffic padding.
* 3. Edit checks.
* 4. Structured data format.

A. 1 and 2 only

B. 2 and 3 only

C. 3 and 4 only

D. 1, 2, and 3 only

Correct Answer:A

Question 27

- (Exam Topic 2)
Organization X owns a 38 percent equity stake in Organization Y. Which of the following statements is true regarding the financial treatment for this relationship?

A. Y should be listed as an investment asset on X's balance sheet

B. X must consolidate the financial statements for both organizations

C. Y should be reported as a footnote to X's financial statements

D. Y should not be reported by X as X does not have a controlling interest

Correct Answer:A

Question 28

- (Exam Topic 1)
Which of the following descriptions of the internal control system are indicators that risks are managed effectively?
* 1. Existing controls promote compliance with applicable laws and regulations.
* 2. The control environment is designed to address all identified risks to the organization.
* 3. Key controls for significant risks to the organization remain consistent over time.
* 4. Monitoring systems are in place to alert management to unexpected events.

A. 1 and 3.

B. 1 and 4.

C. 2 and 3.

D. 2 and 4.

Correct Answer:B

Question 29

- (Exam Topic 2)
Which of the following is the first step an internal audit activity should undertake when executing a data analytics process'?

A. Conduct a risk assessment regarding the effectiveness of the data analytics process.

B. Analyze possible and available sources of raw data

C. Define the purpose and the anticipated value

D. Select data for cleaning and normalization procedures.

Correct Answer:B

Question 30

- (Exam Topic 2)
Which of the following concepts of managerial accounting is focused on allocating overheads to products?

A. Theory of constraints

B. Just-in-time method

C. Activity-based costing

D. Break-even analysis

Correct Answer:C

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