Certified Internal Auditor - Part 3, Business Analysis and Information Technology v1.0 (IIA-CIA-Part3)

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Total 314 questions

A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:

  • A. Empathetic listening.
  • B. Reframing.
  • C. Reflective listening.
  • D. Dialogue.


Answer : B

The cost to enter a foreign market would be highest in which of the following methods of global expansion?

  • A. Joint ventures.
  • B. Licensing.
  • C. Exporting.
  • D. Overseas production.


Answer : D

Which of the following is a characteristic of an emerging industry?

  • A. Established strategy of players.
  • B. Low number of new firms.
  • C. High unit costs.
  • D. Technical expertise.


Answer : C

Which of the following distinguishes the added-value negotiation method from traditional negotiating methods?

  • A. Each party's negotiator presents a menu of options to the other party.
  • B. Each party adopts one initial position from which to start.
  • C. Each negotiator minimizes the information provided to the other party.
  • D. Each negotiator starts with an offer, which is optimal from the negotiator's perspective.


Answer : A

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?
1. It significantly raises compensation and staffing costs.
2. It produces resentment among the organization's employees in host countries.
3. It limits career mobility for parent-country nationals.
4. It can lead to cultural myopia.

  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2, and 3 only
  • D. 1, 2, and 4 only


Answer : D

If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?

  • A. Product departmentalization.
  • B. Process departmentalization.
  • C. Functional departmentalization.
  • D. Customer departmentalization.


Answer : D

Which of the following conflict resolution methods should be applied when the intention of the parties is to solve the problem by clarifying differences and attaining everyone's objectives?

  • A. Accommodating.
  • B. Compromising.
  • C. Collaborating.
  • D. Competing.


Answer : C

Which of the following factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?

  • A. A sense of achievement.
  • B. Promotion.
  • C. Recognition.
  • D. An incremental increase in salary.


Answer : D

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.


Answer : D

According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?
1. Organizational governance.
2. Organizational operations.
3. Organizational information systems.
4. Organizational structure.

  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2, and 3 only
  • D. 1, 2, and 4 only


Answer : C

An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?

  • A. Monitoring.
  • B. Control activities.
  • C. Risk assessment.
  • D. Control environment.


Answer : D

Which mindset promotes the most comprehensive risk management strategy?

  • A. Increase shareholder value.
  • B. Maximize market share.
  • C. Improve operational efficiency.
  • D. Mitigate losses.


Answer : A

An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?

  • A. Develop and test the organization's disaster recovery plan.
  • B. Install and test fire detection and suppression equipment.
  • C. Restrict access to tangible IT resources.
  • D. Ensure that at least one developer has access to both systems and operations.


Answer : D

According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:

  • A. Recognize that organizations use different techniques for managing risk.
  • B. Seek assurance that the key objectives of the risk management processes are being met.
  • C. Determine and accept the level of risk for the organization.
  • D. Treat the evaluation of risk management processes differently from the risk analysis used to plan audit engagements.


Answer : C

Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?

  • A. Submit batches of test transactions through the current system and verify with expected results.
  • B. Use a test program to simulate the normal data entering process.
  • C. Select a sample of records from the database and ensure it matches supporting documentation.
  • D. Evaluate compliance with the organization's change management process.


Answer : C

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Total 314 questions