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IIA-CIA-Part3-3P Practice Questions

Question # 1
Which of me following is true of matrix organizations?
A. A unity-of-command concept requires employees to report technically, functionally, and administratively to the same manager
B. A combination of product and functional departments allows management lo utilize personnel from various functions
C. Authority responsibility and accountability of the units involved may vary based on the project's life, or the organization's culture
D. It is best suited for firms with scattered locations or for multi-lira. large-scale firms


B. A combination of product and functional departments allows management lo utilize personnel from various functions


Question # 2
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
A. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
B. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
C. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
D. 50 percent of total organizational cost has been allocated on a volume basis.


D. 50 percent of total organizational cost has been allocated on a volume basis.


Question # 3
Which of the following recognized competitive strategies focuses on gaining efficiencies?
A. Focus
B. Cost leadership
C. Innovation
D. Differentiation


B. Cost leadership


Question # 4
Which of the following should be established by management during implementation of big data systems to enable ongoing production monitoring?
A. Key performance indicators
B. Reports of software customization
C. Change and patch management
D. Master data management


A. Key performance indicators


Question # 5
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
A. Identifying the processes at the activity level.
B. Analyzing the organization's strategic plan where the business processes are defined.
C. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.
D. Identifying the risks affecting the organization, the objectives, and then the processes concerned.


C. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.


Question # 6
Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management's duties with regard to this model?
A. Ensure compliance with the model.
B. Identify management functions.
C. Identify emerging issues.
D. Set goals for implementation.


A. Ensure compliance with the model.


Question # 7
An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?
A. Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters.
B. Orders, commands and advice are sent to the subsidiaries from headquarters.
C. People of local nationality are developed for the best positions within their own country
D. There is a significant amount of collaboration between headquarters and subsidiaries.


B. Orders, commands and advice are sent to the subsidiaries from headquarters.


Question # 8
Which of the following roles would be least appropriate for the internal audit activity to undertake with regard to an organization's corporate social responsibility (CSR) program?
A. Consult on project design and implementation of the CSR program.
B. Serve as an advisor on internal controls related to CSR.
C. Identify and prioritize the CSR issues that are important to the organization.
D. Evaluate the effectiveness of the organization's CSR efforts.


C. Identify and prioritize the CSR issues that are important to the organization.


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IIA IIA-CIA-Part3-3P Exam Dumps

Exam Name: CIA Exam Part Three: Business Knowledge for Internal Auditing
Certification Name: CIA

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