IIA IIA-CIA-Part3 Practice Exams
Last updated on Apr 01,2025- Exam Code: IIA-CIA-Part3
- Exam Name: CIA Exam Part Three: Business Knowledge for Internal Auditing
- Certification Provider: IIA
- Latest update: Apr 01,2025
An internal auditor found the following information while reviewing the monthly financial siatements for a wholesaler of safety
The cost of goods sold was reported at $8,500.
Which of the following inventory methods was used to derive this value?
- A . Average cost method
- B . First-in, first-out (FIFO) method
- C . Specific identification method
- D . Activity-based costing method
Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables.
Which of the following would be the best argument for using the direct write-off method?
- A . It is useful when losses are considered insignificant.
- B . It provides a better alignment with revenue.
- C . It is the preferred method according to The IIA.
- D . It states receivables at net realizable value on the balance sheet.
For which of the following scenarios would the most recent backup of the human resources database be the best source of information to use?
- A . An incorrect program fix was implemented just prior to the database backup.
- B . The organization is preparing to train all employees on the new self-service benefits system.
- C . There was a data center failure that requires restoring the system at the backup site.
- D . There is a need to access prior year-end training reports for all employees in the human resources database
Which of the following statements is true regarding user developed applications (UDAs) and traditional IT applications?
- A . UDAs arid traditional JT applications typically follow a similar development life cycle
- B . A UDA usually includes system documentation to illustrate its functions, and IT-developed applications typically do not require such documentation.
- C . Unlike traditional IT applications. UDAs typically are developed with little consideration of controls.
- D . IT testing personnel usually review both types of applications thoroughly to ensure they were developed properly.
Which of the following is true regarding the use of remote wipe for smart devices?
- A . It can restore default settings and lock encrypted data when necessary.
- B . It enables the erasure and reformatting of secure digital (SD) cards.
- C . It can delete data backed up to a desktop for complete protection if required.
- D . It can wipe data that is backed up via cloud computing
Which of the following statements. Is most accurate concerning the management and audit of a web server?
- A . The file transfer protocol (FTP) should always be enabled.
- B . The simple mail transfer protocol (SMTP) should be operating under the most privileged accounts.
- C . The number of ports and protocols allowed to access the web server should be maximized.
- D . Secure protocols for confidential pages should be used instead of dear-text protocols such as HTTP or FTP.
Which of the following business practices promotes a culture of high performance?
- A . Reiterating the importance of compliance with established policies and procedures.
- B . Celebrating employees’ individual excellence.
- C . Periodically rotating operational managers.
- D . Avoiding status differences among employees.
According to IIA guidance, which of the following statements is true regarding penetration testing?
- A . Testing should not be announced to anyone within the organization to solicit a real-life response.
- B . Testing should take place during heavy operational time periods to test system resilience.
- C . Testing should be wide in scope and primarily address detective management controls for identifying potential attacks.
- D . Testing should address the preventive controls and management’s response.
According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?
- A . Project portfolio.
- B . Project development
- C . Project governance.
- D . Project management methodologies
Which of the following cost of capital methods identifies the time period required to recover She cost of the capital investment from the annual inflow produced?
- A . Cash payback technique
- B . Annual rate of return technique.
- C . Internal rate of return method.
- D . Net present value method.