IIA IIA-CIA-Part3 Practice Exams
Last updated on Apr 09,2025- Exam Code: IIA-CIA-Part3
- Exam Name: CIA Exam Part Three: Business Knowledge for Internal Auditing
- Certification Provider: IIA
- Latest update: Apr 09,2025
Which of following best demonstrates the application of the cost principle?
- A . A company reports trading and investment securities at their market cost
- B . A building purchased last year for $1 million is currently worth ©1.2 million, but the company still reports the building at $1 million.
- C . A building purchased last year for ©1 million is currently worth £1,2 million, and the company adjusts the records to reflect the current value
- D . A company reports assets at either historical or fair value, depending which is closer to market value.
Which of the following is a characteristic of using a hierarchical control structure?
- A . Less use of policies and procedures.
- B . Less organizational commitment by employees.
- C . Less emphasis on extrinsic rewards.
- D . Less employee’s turnover.
Which of the following would an organization execute to effectively mitigate and manage risks created by a crisis or event?
- A . Only preventive measures.
- B . Alternative and reactive measures.
- C . Preventive and alternative measures.
- D . Preventive and reactive measures.
Which of the following best describes owner’s equity?
- A . Assets minus liabilities.
- B . Total assets.
- C . Total liabilities.
- D . Owners contribution plus drawings.
Which of the following actions should an internal auditor take to clean the data obtained for analytics purposes?
- A . Deploys data visualization tool.
- B . Adopt standardized data analysis software.
- C . Define analytics objectives and establish outcomes.
- D . Eliminate duplicate records.
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 . Poop o of local nationality are developed for the best positions within their own country.
- D . There is a significant amount of collaboration between headquarters and subs diaries.
Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?
- A . The organization sells inventory to an overseas subsidiary at fair value.
- B . The local subsidiary purchases inventory at a discounted price.
- C . The organization sells inventory to an overseas subsidiary at the original cost.
- D . The local subsidiary purchases inventory at the depreciated cost.
Which of the following types of budgets will best provide the basis for evaluating the organization’s performance?
- A . Cash budget.
- B . Budgeted balance sheet.
- C . Selling and administrative expense budget.
- D . Budgeted income statement.
Which of the following items best describes the strategy of outsourcing?
- A . Contracting the work to Foreign Service providers to obtain lower costs
- B . Contracting functions or knowledge-related work with an external service provider.
- C . Contract -ng operation of some business functions with an internal service provider
- D . Contracting a specific external service provider to work with an internal service provider