IIA-CIA-PART3 practice questions 171–180

1. Question 171 · 336 in bank

   Which of the following phases of a business cycle are marked by an underuse of resources? 1. The trough. 2. The peak. 3. The recovery. 4. The recession.

   • A1 and 3 only
   • B1 and 4 only
   • C2 and 3 only
   • D2 and 4 only

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   Answer: B

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2. Question 172 · 336 in bank

   According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?

   • AKey processes across the entity which impact quality must be identified and included.
   • BThe quality management system must be documented in the articles of incorporation, quality manual, procedures, work instructions, and records.
   • CManagement must review the quality policy, analyze data about quality management system performance, and assess opportunities for improvement and the need for change.
   • DThe entity must have processes for inspections, testing, measurement, analysis, and improvement.

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   Answer: B

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3. Question 173 · 336 in bank

   An internal auditor for a pharmaceutical company is planning a cybersecurity audit and conducting a risk assessment. Which of the following would be considered the most significant cyber threat to the organization?

   • ACybercriminals hacking into the organization's time and expense system to collect employee personal data.
   • BHackers breaching the organization's network to access research and development reports.
   • CA denial-of-service attack that prevents access to the organization's website.
   • DA hacker accessing the financial information of the company.

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   Answer: D

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4. Question 174 · 336 in bank

   Which of the following professional organizations sets standards for quality and environmental audits?

   • AThe Committee of Sponsoring Organizations of the Treadway Commission.
   • BThe Board of Environmental, Health, and Safety Auditor Certifications.
   • CThe International Organization of Supreme Audit Institutions.
   • DThe International Standards Organization.

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   Answer: D

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5. Question 175 · 336 in bank

   Which of following best demonstrates the application of the cost principle?

   • AA company reports trading and investment securities at their market cost.
   • BA building purchased last year for $1 million is currently worth $1.2 million, but the company still reports the building at $1 million.
   • CA building purchased last year for $1 million is currently worth $1.2 million, and the company adjusts the records to reflect the current value.
   • DA company reports assets at either historical or fair value, depending which is closer to market value.

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   Answer: B

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6. Question 176 · 336 in bank

   An organization facing rapid growth decides to employ a third party service provider to manage its customer relationship management function. Which of the following is true regarding the supporting application software used by that provider compared to an in-house developed system? 1. Updating documentation is always a priority. 2. System availability is usually more reliable. 3. Data security risks are lower. 4. Overall system costs are lower.

   • A1 and 2 only
   • B1 and 3 only
   • C2 and 4 only
   • D3 and 4 only

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   Answer: C

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7. Question 177 · 336 in bank

   A multinational organization allows its employees to access work email via personal smart devices. However, users are required to consent to the installation of mobile device management (MDM) software that will remotely wipe data in case of theft or other incidents. Which of the following should the organization ensure in exchange for the employees' consent?

   • AThat those employees who do not consent to MDM software cannot have an email account.
   • BThat personal data on the device cannot be accessed and deleted by system administrators.
   • CThat monitoring of employees' online activities is conducted in a covert way to avoid upsetting them.
   • DThat employee consent includes appropriate waivers regarding potential breaches to their privacy.

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   Answer: D

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8. Question 178 · 336 in bank

   Which of the following is an example of a physical control designed to prevent security breaches?

   • APreventing database administrators from initiating program changes.
   • BBlocking technicians from getting into the network room.
   • CRestricting system programmers' access to database facilities.
   • DUsing encryption for data transmitted over the public internet.

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   Answer: B

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9. Question 179 · 336 in bank

   Where complex problems need to be addressed, which of the following communication networks would be most appropriate?

   • AChain.
   • BAll-channel.
   • CCircle.
   • DWheel.

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   Answer: B

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10. Question 180 · 336 in bank

    An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two. Which of the following could be the reason for the decline in the net profit margin for year two?

    • ACost of sales increased relative to sales.
    • BTotal sales increased relative to expenses.
    • CThe organization had a higher dividend payout rate in year two.
    • DThe government increased the corporate tax rate.

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    Answer: D

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IIA-CIA-PART3 practice, question 171. 336 questions available.