IIA-CIA-PART3 practice questions 201–210

1. Question 201 · 336 in bank

   Which of the following statements is true regarding user-developed applications (UDAs) and traditional IT applications?

   • AUDAs and traditional IT applications typically follow a similar development life cycle.
   • BA UDA usually includes system documentation to illustrate its functions, and IT-developed applications typically do not require such documentation.
   • CUnlike traditional IT applications, UDAs typically are developed with little consideration of controls.
   • DIT testing personnel usually review both types of applications thoroughly to ensure they were developed properly.

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   Answer: C

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2. Question 202 · 336 in bank

   Under a value-added taxing system:

   • ABusinesses must pay a tax only if they make a profit.
   • BThe consumer ultimately bears the cost of the tax through higher prices.
   • CConsumer savings are discouraged.
   • DThe amount of value added is the difference between an organization's sales and its cost of goods sold.

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   Answer: B

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3. Question 203 · 336 in bank

   According to IIA guidance on IT, which of the following best describes a logical access control?

   • ARequire complex passwords to be established and changed quarterly.
   • BRequire swipe cards to control entry into secure data centers.
   • CMonitor access to the data center with closed circuit camera surveillance.
   • DMaintain current role definitions to ensure appropriate segregation of duties.

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   Answer: A

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4. Question 204 · 336 in bank

   All of the following are true with regard to the first-in, first-out inventory valuation method except:

   • AIt values inventory close to current replacement cost.
   • BIt generates the highest profit when prices are rising.
   • CIt approximates the physical flow of goods.
   • DIt minimizes current-period income taxes.

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   Answer: D

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5. Question 205 · 336 in bank

   Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?

   • ANon-disclosure agreements between the firm and its employees.
   • BLogs of user activity within the information system.
   • CTwo-factor authentication for access into the information system.
   • DLimited access to information, based on employee duties.

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   Answer: D

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6. Question 206 · 336 in bank

   A chief audit executive wants to implement an enterprisewide resource planning software. Which of the following internal audit assessments could provide overall assurance on the likelihood of the software implementation's success?

   • AReadiness assessment.
   • BProject risk assessment.
   • CPost-implementation review.
   • DKey phase review.

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   Answer: B

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7. Question 207 · 336 in bank

   Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered: Activity Level - Maintenance Cost - Month - Patient Days - Incurred - January - 5,600 $7,900 February - 7,100 $8,500 March - 5,000 $7,400 April - 6,500 $8,200 May - 7,300 $9,100 June - 8,000 $9,800 If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

   • AFixed cost.
   • BVariable cost.
   • CTotal maintenance cost.
   • DPatient days.

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   Answer: D

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8. Question 208 · 336 in bank

   The process of scenario planning begins with which of the following steps?

   • ADetermining the trends that will influence key factors in the organization's environment.
   • BSelecting the issue or decision that will impact how the organization conducts future business.
   • CSelecting leading indicators to alert the organization of future developments.
   • DIdentifying how customers, suppliers, competitors, employees, and other stakeholders will react.

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   Answer: B

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9. Question 209 · 336 in bank

   Which of the following is the best example of IT governance controls?

   • AControls that focus on segregation of duties, financial, and change management.
   • BPersonnel policies that define and enforce conditions for staff in sensitive IT areas.
   • CStandards that support IT policies by more specifically defining required actions.
   • DControls that focus on data structures and the minimum level of documentation required.

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   Answer: A

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10. Question 210 · 336 in bank

    A company produces water buckets with the following costs per bucket: Direct labor = $2 - Direct material = $5 - Fixed manufacturing = $3.50 - Variable manufacturing = $2.50 - The water buckets are usually sold for $15. However, the company received a special order for 50,000 water buckets at $11 each. Assuming there is adequate manufacturing capacity and all other variables are constant, what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?

    • A$9.50
    • B$10.50
    • C$11
    • D$13

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    Answer: A

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IIA-CIA-PART3 practice, question 201. 336 questions available.