IIA-CIA-PART3 practice questions 241–250

1. Question 241 · 336 in bank

   When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?

   • AReview and acquire the external audit service.
   • BAssess the appraisal and actuarial services.
   • CDetermine the selection criteria.
   • DIdentify regulatory requirements to be considered.

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   Answer: C

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2. Question 242 · 336 in bank

   Which of the following is likely to have an expiration date and may contain stored clear text passwords?

   • ACookie
   • BUniversal resource locator (URL)
   • CHypertext transport protocol (HTTP)
   • DBrowser

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   Answer: A

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3. Question 243 · 336 in bank

   Which of the following conditions could lead an organization to enter into a new business through internal development rather than through acquisition?

   • AIt is expected that there will be slow retaliation from incumbents.
   • BThe acquiring organization has information that the selling organization is weak.
   • CThe number of bidders to acquire the organization for sale is low.
   • DThe condition of the economy is poor.

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   Answer: A

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4. Question 244 · 336 in bank

   Which of the following statements about slack time and milestones are true? 1. Slack time represents the amount of time a task may be delayed without delaying the entire project. 2. A milestone is a moment in time that marks the completion of the project's major deliverables. 3. Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time. 4. A milestone requires resource allocation and needs time to be completed.

   • A1 and 4 only
   • B2 and 3 only
   • C1, 2, and 3 only
   • D1, 2, 3, and 4

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   Answer: C

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5. Question 245 · 336 in bank

   A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services. Which of the following best describes the restaurant's strategy?

   • ADiversification
   • BVertical integration
   • CRisk avoidance
   • DDifferentiation

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   Answer: A

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6. Question 246 · 336 in bank

   Which of the following are typical audit considerations for a review of authentication? 1. Authentication policies and evaluation of controls transactions. 2. Management of passwords, independent reconciliation, and audit trail. 3. Control self-assessment tools used by management. 4. Independent verification of data integrity and accuracy.

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

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   Answer: A

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7. Question 247 · 336 in bank

   At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?

   • APrior to testing the new application.
   • BDuring testing of the new application.
   • CDuring implementation of the new application.
   • DDuring maintenance of the new application.

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   Answer: A

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8. Question 248 · 336 in bank

   Which of the following scenarios indicates an effective use of financial leverage?

   • AAn organization has a rate of return on equity of 20% and a rate of return on assets of 15%
   • BAn organization has a current ratio of 2 and an inventory turnover of 12
   • CAn organization has a debt to total assets ratio of 0 2 and an interest coverage ratio of 10
   • DAn organization has a profit margin of 30% and an assets turnover of 7%

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   Answer: C

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9. Question 249 · 336 in bank

   Management has decided to change the organizational structure from one that was previously decentralized to one that is now highly centralized. As such, which of the following would be a characteristic of the now highly centralized organization?

   • ATop management does little monitoring of the decisions made at lower levels
   • BThe decisions made at the lower levels of management are considered very important.
   • CDecisions made at lower levels in the organizational structure are few
   • DReliance is placed on top management decision making by few of the organization's departments

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   Answer: D

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10. Question 250 · 336 in bank

    Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

    • AIncreasing complexity over time.
    • BInterface with corporate systems.
    • CAbility to meet user needs.
    • DHidden data columns or worksheets.

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    Answer: C

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IIA-CIA-PART3 practice, question 241. 336 questions available.