IIA-CIA-PART3 practice questions 301–310

1. Question 301 · 336 in bank

   Which of the following best describes a potential benefit of using data analytics?

   • AIt easily aligns with existing internal audit competencies to reduce expenses.
   • BIt provides a more holistic view of the audited area.
   • CIts outcomes can be easily interpreted into audit conclusions.
   • DIts application increases internal auditors' adherence to the Standards.

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   Answer: B

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2. Question 302 · 336 in bank

   Which of these instances accurately describes the responsibilities for big data governance?

   • AManagement must ensure information storage systems are appropriately defined and processes to update critical data elements are clear.
   • BExternal auditors must ensure that analytical models are periodically monitored and maintained.
   • CThe board must implement controls around data quality dimensions to ensure that they are effective.
   • DInternal auditors must ensure the quality and security of data, with a heightened focus on the riskiest data elements.

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   Answer: D

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3. Question 303 · 336 in bank

   An organization that produces backpacks of standard quality is considering manufacturing high-quality packs. Which of the following costs is most relevant when deciding whether to manufacture the new product?

   • AFixed costs.
   • BVariable costs.
   • CConversion costs.
   • DIncremental costs.

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   Answer: D

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4. Question 304 · 336 in bank

   Which of the following is a distinguishing feature of managerial accounting, which is not applicable to financial accounting?

   • AManagerial accounting uses double-entry accounting and cost data.
   • BManagerial accounting uses general accepted accounting principles.
   • CManagerial accounting involves decision making based on quantifiable economic events.
   • DManagerial accounting involves decision making based on predetermined standards.

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   Answer: D

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5. Question 305 · 336 in bank

   Which of the following best describes the benefit of an organization adopting a business continuity and disaster recovery plan for responding to natural disasters?

   • AIt prevents economic impact to the organization.
   • BIt enables the organization to predict when a natural disaster will occur.
   • CIt reduces the likelihood that events will disrupt operating activities.
   • DIt eliminates the threat to the organization.

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   Answer: C

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6. Question 306 · 336 in bank

   An organization upgraded to a new accounting software. Which of the following activities should be performed by the IT software vendor immediately following the upgrade?

   • AMarket analysis to identify trends.
   • BServices to manage and maintain the IT infrastructure.
   • CBackup and restoration.
   • DSoftware testing and validation

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   Answer: D

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7. Question 307 · 336 in bank

   Which of the following measures immediate liquidity?

   • AAcid-test (quick) ratio.
   • BCurrent ratio.
   • CProfit margin.
   • DTimes interest earned.

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   Answer: A

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8. Question 308 · 336 in bank

   An internal auditor conducts a preliminary privacy and data protection risk assessment. Which of the following is the most essential question to start the assessment?

   • AHow does the cybersecurity unit investigate instances of data leakage or allegations?
   • BWhat are potential fines applicable to the organization for data protection breaches?
   • CWhat type of private data is collected and maintained by the organization?
   • DIn what instances is data pseudonymization is applied in the organization?

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   Answer: C

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9. Question 309 · 336 in bank

   Which of the following is the most appropriate action an internal auditor would perform during an audit of his organization's IT change management process?

   • AValidate that only authorized personnel can migrate changes into the production environment.
   • BPerform a risk assessment to determine the likelihood that risk could occur due to insufficient patch application.
   • CPublish a schedule that lists all approved changes and planned implementation dates.
   • DUpdate change management processes on a consistent basis to keep up with changing technologies.

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   Answer: A

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10. Question 310 · 336 in bank

    Which of the following is the primary goal of an effective business impact analysis?

    • AIt includes business continuity program governance and risk management.
    • BIt identifies key assets, critical processes, resources, and technology.
    • CIt sets testing requirements for the organizationwide continuity functions.
    • DIt outlines and communicates recovery points and objectives.

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    Answer: D

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IIA-CIA-PART3 practice, question 301. 336 questions available.