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

Question 37

- (Exam Topic 1)
Which of the following statements is correct regarding corporate compensation systems and related bonuses?
* 1. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
* 2. Compensation systems are not part of an organization's control system and should not be reported as such.
* 3. An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

A. 1 only

B. 2 only

C. 3 only

D. 2 and 3 only

Correct Answer:A

Question 38

- (Exam Topic 2)
An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent. If the organization has total debt of $1 000 000 what is the organization's sales level?

A. $266.667

B. $416,667

C. $3.750.000

D. $5 000.000

Correct Answer:C

Question 39

- (Exam Topic 1)
Which of the following is a role of the board of directors in the governance process?

A. Conduct periodic assessments of the organization's governance systems.

B. Obtain assurance concerning the effectiveness of the organization's governance systems.

C. Implement an effective system of internal controls to support the organization's governance systems.

D. Review and approve operational goals and objectives.

Correct Answer:B

Question 40

- (Exam Topic 1)
In mergers and acquisitions, which of the following is an example of a horizontal combination?

A. Dairy manufacturing company taking over a large dairy farm.

B. A movie producer acquires movie theaters.

C. A petroleum processing company acquires an agro-processing firm.

D. A baker taking over a competitor.

Correct Answer:D

Question 41

- (Exam Topic 2)
According to HA guidance or IT which of the following spreadsheets is most likely to be considered a high-risk user-develop application?

A. A revenue calculation spreadsheet supported with price and volume reports from the production department

B. An asset retirement calculation spreadsheet comprised of multiple formulas and assumptions

C. An ad-hoc inventory listing spreadsheet comprising details of written-off inventory quantitates

D. An accounts receivable reconciliation spreadsheet used by the accounting manager to verify balances.

Correct Answer:B

Question 42

- (Exam Topic 2)
Which of the following types of analytics would be used by an organization to examine metrics by business units and identity the most profitable business units?

A. Detailed analytics

B. Predictive analytics

C. Diagnostic analytics

D. Prescriptive analytics

Correct Answer:D

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