IIA-CIA-PART3 practice questions 141–150

1. Question 141 · 336 in bank

   The management of working capital is most crucial for which of the following aspects of business?

   • ALiquidity.
   • BProfitability.
   • CSolvency.
   • DEfficiency.

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   Answer: A

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2. Question 142 · 336 in bank

   Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?

   • AThe auditor should focus on the audit client as a person and understand him, rather than just concentrating on the problem.
   • BThe auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.
   • CThe auditor should explore alternative solutions to address the audit problem, so the audit client has options.
   • DThe auditor should take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.

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   Answer: A

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3. Question 143 · 336 in bank

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

   • ACash budget.
   • BBudgeted balance sheet.
   • CSelling and administrative expense budget.
   • DBudgeted income statement.

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   Answer: D

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4. Question 144 · 336 in bank

   Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?

   • APKI uses an independent administrator to manage the public key.
   • BThe public key is authenticated against reliable third-party identification.
   • CPKI's public accessibility allows it to be used readily for e-commerce.
   • DThe private key uniquely authenticates each party to a transaction.

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   Answer: D

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5. Question 145 · 336 in bank

   Which of the following are appropriate functions for an IT steering committee? 1. Assess the technical adequacy of standards for systems design and programming. 2. Continually monitor of the adequacy and accuracy of software and hardware in use. 3. Assess the effects of new technology on the organization's IT operations. 4. Provide broad oversight of implementation, training, and operation of new systems.

   • A1, 2, and 3
   • B1, 2, and 4
   • C1, 3, and 4
   • D2, 3, and 4

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   Answer: D

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6. Question 146 · 336 in bank

   While conducting audit procedures at the organization's data center, an internal auditor noticed the following: - Backup media was located on data center shelves. - Backup media was organized by date. - Backup schedule was one week in duration. - The system administrator was able to present restore logs. Which of the following is reasonable for the internal auditor to conclude?

   • ABackup media is not properly stored, as the storage facility should be off-site.
   • BBackup procedures are adequate and appropriate according to best practices.
   • CBackup media is not properly indexed, as backup media should be indexed by system, not date.
   • DBackup schedule is not sufficient, as full backup should be conducted daily.

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   Answer: A

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7. Question 147 · 336 in bank

   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?

   • AUnexpected increases in outsourcing costs.
   • BLoss of data privacy.
   • CInadequate staffing.
   • DViolation of contractual terms.

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   Answer: C

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8. Question 148 · 336 in bank

   Which of the following application-based controls is an example of a programmed edit check?

   • AReasonableness check.
   • BTransaction log.
   • CInput error correction.
   • DAuthorization for access.

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   Answer: A

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9. Question 149 · 336 in bank

   At what stage of project integration management would a project manager and project management team typically coordinate the various technical and organizational interfaces that exist in the project?

   • AProject plan development.
   • BProject plan execution.
   • CIntegrated change control.
   • DProject quality planning.

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   Answer: A

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10. Question 150 · 336 in bank

    Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

    • AThe cost of goods sold for the period will be understated.
    • BThe cost of goods sold for the period will be overstated.
    • CThe net income for the period will be understated.
    • DThere will be no effect on the cost of goods sold or the net income for the period.

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    Answer: B

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IIA-CIA-PART3 practice, question 141. 336 questions available.