IIA-CIA-Part3 Free Questions – CIA Exam Part Three: Business Knowledge for Internal Auditing V10.02

CIA Exam Part Three: Business Knowledge for Internal Auditing IIA-CIA-Part3 exam is a hot exam, which is designed to test candidates’ knowledge, skills, and abilities particularly as they relate to these core business concepts.​ We have released IIA-CIA-Part3 exam questions online to ensure that you can pass Part3 CIA Exam Part Three: Business Knowledge for Internal Auditing exam smoothly. Come to get the valid IIA-CIA-Part3 exam questions now.

IIA-CIA-Part3 Free Questions – CIA Exam Part Three: Business Knowledge for Internal Auditing V10.02

1. Which of the following statements regarding organizational governance is not correct?


2. Which of the following statements is correct regarding corporate compensation systems and related bonuses?
1. A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
2. Compensation systems are not part of an organization’s control system and should not be reported as such.
3. An audit of an organization’s compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.


3. Which is the least effective form of risk management?


4. Which of the following is a role of the board of directors in the governance process?


5. The first stage in the development of a crisis management program is to:


6. The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?


7. Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?


8. When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:


9. Which of the following statements is correct regarding risk analysis?


10. During a review of a web-based application used by customers to check the status of their bank accounts, it would be most important for the internal auditor to ensure that:


11. Which of the following steps should an internal auditor take during an audit of an organization’s business continuity plans?
1. Evaluate the business continuity plans for adequacy and currency.
2. Prepare a business impact analysis regarding the loss of critical business.
3. Identify key personnel who will be required to implement the plans.
4. Identify and prioritize the resources required to support critical business processes.


12. Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?


13. Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?
1. Encryption.
2. Traffic padding.
3. Edit checks.
4. Structured data format.


14. The main reason to establish internal controls in an organization is to:


15. For an engineering department with a total quality management program, important elements of quality management include all of the following except:


16. The economic order quantity for inventory is higher for an organization that has:


17. Which of the following is a characteristic of just-in-time inventory management systems?


18. The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:


19. What must be monitored in order to manage risk of consumer product inventory obsolescence?
1. Inventory balances.
2. Market share forecasts.
3. Sales returns.
4. Sales trends.


20. Preferred stock is less risky for investors than is common stock because:


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