IIA-CIA-Part3-3P Exam Dumps Free Test Engine Verified By IIA CIA Certified Experts [Q20-Q40]

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IIA-CIA-Part3-3P Exam Dumps Free Test Engine Verified By IIA CIA Certified Experts

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The Certified Internal Auditor (CIA) Exam is a globally recognized certification program that measures the knowledge, skills, and competencies required of internal auditors. The IIA-CIA-Part3-3P Exam is one of the three exams that candidates must pass to earn their CIA certification. IIA-CIA-Part3-3P exam, also known as the Business Knowledge for Internal Auditing exam, covers the fundamental principles of business management, including financial management, corporate governance, risk management, and information technology.

IIA-CIA-Part3-3P exam, also known as the CIA Exam Part Three: Business Knowledge for Internal Auditing, is a professional certification exam offered by the Institute of Internal Auditors (IIA). IIA-CIA-Part3-3P exam is designed to test the candidate’s knowledge and understanding of business concepts, principles, and practices relevant to the internal auditing profession. It is a comprehensive exam that covers a wide range of topics including business acumen, financial management, information technology, and risk management.

QUESTION 20
Which of the following security controls would be the most effective in preventing security breaches?

Audit of access rights.

Monitoring privileged accounts.

Approval of identity request.

Access logging.

QUESTION 21
The chief audit executive (CAE) has embraced a total quality management approach to improving the internal audit activity’s (IAA’s) processes. He would like to reduce the time to complete audits and improve client ratings of the IAA.
Which of the following staffing approaches is the CAE most likely to select?

Assign a team of personnel who have different specialties to each audit and empower team members to participate fully in key decisions.

Assign a team of personnel who have similar specialties to specific engagements that would benefit from those specialties and limit key decisions to the senior person.

Assign a team to each audit, designate a single person to be responsible for each phase of the audit, and limit decision making outside of their area of responsibility.

Assign a team with a trained audit manager to plan each audit and distribute field work tasks to various staff auditors.

QUESTION 22
Which of the following borrowing options is an unsecured loan?

Second-mortgage financing from a bank.

An issue of commercial paper.

Pledged accounts receivable.

Asset-based financing.

QUESTION 23
Which of me following storage options would give the organization the best chance of recovering data?

Encrypted physical copies of the data and their encryption keys are stored together at the organization and are readily available upon request

Encrypted physical copies of the data are stored separately from their encryption keys and both are held in secure locations a few hours away from me organization

Encrypted reports on usage and database structure changes are stored on a cloud-based. secured database that is readily accessible

Encrypted copies of the data are stored in a separate secure location a few hours away while the encryption keys are stored at the organization and are readily available

QUESTION 24
Which of the following types of budgets will best provide the basis for evaluating the organization’s performance?

Budgeted income statement.

Selling and administrative expense budget.

Budgeted balance sheet.

Cash budget.

QUESTION 25
Which of the following is the best example of IT governance controls?

Controls that focus on data structures and the minimum level of documentation required

Standards that support IT policies by more specifically defining required actions

Personnel policies that define and enforce conditions for staff in sensitive IT areas

Controls that focus on segregation of duties, financial and change management

QUESTION 26
An organization is considering outsourcing its IT services, and the internal auditor is assessing the related risks. The auditor grouped the related risks into three categories:
Risks specific to the organization itself.
Risks specific to the service provider.
Risks shared by both the organization and the service provider.
Which of the following risks should the auditor classify as specific to the service provider?

Inadequate staffing.

Unexpected increases in outsourcing costs.

Loss of data privacy.

Violation of contractual terms.

QUESTION 27
Which of the following statements is true concerning the basic accounting treatment of a partnership?

The basis for sharing net incomes or net losses must be fixed.

The ownership ratio identifies the basis for dividing net income and net loss.

The initial investment of each partner should be recorded at book value.

A partner’s capital only changes due to net income or net loss.

QUESTION 28
Which of the following IT professionals is responsible for providing maintenance to switches and routers to keep IT systems running as intended?

Database administrator.

Response and support team.

Data center operations manager.

Network administrator.

QUESTION 29
Which of the following best demonstrates an organization’s ability to recover from a disaster?

Hot site

Cold site

Redundant data center

Regular testing of the disaster plan

QUESTION 30
Which of the following is the best example of a compliance risk that is likely to arise when adopting a bring-your-own-device (BYOD) policy?

The risk that users try to bypass controls and do not install required software updates.

The risk that smart devices can be lost or stolen due to their mobile nature.

The risk that an organization intrusively monitors personal information stored on smart devices.

The risk that proprietary information is not deleted from the device when an employee leaves.

QUESTION 31
Which of the following best describes a market signal?

The bargaining power of buyers is forcing a drop in market prices.

There is pressure from the competitor’s substitute products.

Strategic analysis by the organization indicates feasibility of expanding to new market niches.

The competitor announces a new warranty program.

QUESTION 32
Which of the following actions would senior management need to consider as pan of new IT guidelines regarding the organization’s cybersecurity policies?

Assigning new roles and responsibilities for senior IT management.

Growing use of bring your own devices tor organizational matters

Expansion of operations into new markets with united IT access

Hiring new personnel within the IT department tor security purposes

QUESTION 33
Which of the following are likely indicators of ineffective change management?
1) IT management is unable to predict how a change will impact interdependent systems or business processes.
2) There have been significant increases in trouble calls or in support hours logged by programmers.
3) There is a lack of turnover in the systems support and business analyst development groups.
4) Emergency changes that bypass the normal control process frequently are deemed necessary.

1 and 3 only

2 and 4 only

1, 2, and 4 only

1, 2, 3, and 4

QUESTION 34
Which of the following statements is true regarding outsourced business processes?

Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.

The system of internal controls may be better and more efficient when the business process is

The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.

Generally, independence is improved when the internal audit activity reviews outsourced business processes.

outsourced compared to internally sourced.

QUESTION 35
When examining an organization’s strategic plan, an internal auditor should expect to find which of the following components?

Analysis of the competitive environment.

Plan for the procurement of resources.

Identification of achievable goals and timelines.

Plan for progress reporting and oversight.

QUESTION 36
Organizations use matrix management to accomplish which of the following?

To improve the chain of command.

To strengthen corporate headquarters.

To focus better on a single market.

To increase lateral communication.

QUESTION 37
Which of the following most accurately describes the purpose of application authentication controls?

To ensure that data input into business applications is valid, complete, and accurate.

To prevent or detect errors in data processed using business applications.

To ensure that business applications are protected from unauthorized logical access.

To ensure the validity, accuracy, and completeness of outputs from business applications.

QUESTION 38
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.

1 and 3.

1 and 4.

2 and 3.

2 and 4.

QUESTION 39
A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:

Sort on product identification code and identify missing product identification codes.

Review store identification code and identify missing product identification codes.

Compare product identification codes for consecutive periods.

Compare product identification codes by store for consecutive periods.

QUESTION 40
According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?

Determine the optimal amount of resources for the organization to invest in CSR.

Align CSR program objectives with the organization’s strategic plan.

Integrate CSR activities into the organization’s decision-making process.

Determine whether the organization has an appropriate policy governing its CSR activities.

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