IIA-CIA-PART3 practice questions 221–230

1. Question 221 · 336 in bank

   Which stage in the industry life cycle is characterized by many different product variations?

   • AIntroduction.
   • BGrowth.
   • CMaturity.
   • DDecline.

   Show answer

   Answer: C

   Next question

2. Question 222 · 336 in bank

   An organization plans to upgrade its IT network to address a recent ransomware incident that hampered operations for weeks. The ransomware was the result of lapses in access to the network that exposed sensitive information. Which of the following is a risk that could significantly be impacted by the organization’s planned change to its IT network?

   • AThe organization lacks the necessary senior management to ensure that project objectives are met
   • BThe organization’s recent hiring of additional staff to the IT department would create more scrutiny of end user activity
   • CThe organization creates new processes and policies that employees feel are too burdensome
   • DThe organization experiences continuing issues that hamper employees’ ability to provide quality customer service

   Show answer

   Answer: C

   Next question

3. Question 223 · 336 in bank

   An organization decided to reorganize into a flatter structure. Which of the following changes would be expected with this new structure?

   • ALower costs
   • BSlower decision making at the senior executive level
   • CLimited creative freedom in lower-level managers
   • DSenior-level executives more focused on short-term routine decision making

   Show answer

   Answer: A

   Next question

4. Question 224 · 336 in bank

   A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

   • ADevelop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.
   • BAdopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.
   • CInvolve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.
   • DDevelop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.

   Show answer

   Answer: D

   Next question

5. Question 225 · 336 in bank

   According to IIA guidance on IT auditing, which of the following would not be an area examined by the internal audit activity?

   • AAccess system security.
   • BPolicy development.
   • CChange management.
   • DOperations processes.

   Show answer

   Answer: B

   Next question

6. Question 226 · 336 in bank

   Which of the following represents a basis for consolidation under the International Financial Reporting Standards?

   • AVariable entity approach
   • BControl ownership
   • CRisk and reward
   • DVoting interest

   Show answer

   Answer: D

   Next question

7. Question 227 · 336 in bank

   Which of the following is the most important contract term to audit, because it typically impacts business efficiency?

   • AWarranty service
   • BExtraordinary circumstance clause
   • CIndemnities
   • DLimitation of liability

   Show answer

   Answer: C

   Next question

8. Question 228 · 336 in bank

   Which of the following describes a typical desktop workstation used by most employees in their daily work?

   • AWorkstation contains software that prevents unauthorized transmission of information into and out of the organization's network.
   • BWorkstation contains software that controls information flow between the organization's network and the Internet.
   • CWorkstation contains software that enables the processing of transactions and is not shared among users of the organization's network.
   • DWorkstation contains software that manages user's access and processing of stored data on the organization's network.

   Show answer

   Answer: D

   Next question

9. Question 229 · 336 in bank

   An internal auditor is reviewing results from software development integration testing. What is the purpose of integration testing?

   • ATo verify that the application meets stated user requirements
   • BTo verify that standalone programs match code specifications
   • CTo verify that the application would work appropriately for the intended number of users
   • DTo verify that all software and hardware components work together as intended

   Show answer

   Answer: C

   Next question

10. Question 230 · 336 in bank

    Which of the following is an example of a nonfinancial internal failure quality cost?

    • ADecreasing gross profit margins over time.
    • BForegone contribution margin on lost sales.
    • CDefective units shipped to customers.
    • DExcessive time to convert raw materials into finished goods.

    Show answer

    Answer: D

    Next question

Keyboard:J Kmove between questionsA–Dselect an answerRshow or hide the answer← →change page

IIA-CIA-PART3 practice, question 221. 336 questions available.