IIA-CIA-PART3 practice questions 331–336

1. Question 331 · 336 in bank

   When using the absorption costing approach, which of the following should be categorized as a period cost?

   • ASelling expenses.
   • BFixed manufacturing overhead.
   • CDirect labor.
   • DVariable manufacturing overhead.

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   Answer: A

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2. Question 332 · 336 in bank

   Which of the following is a key factor in the development of a production budget for a manufacturing organization?

   • ADirect materials units required.
   • BEstimated ending unit inventory.
   • CProjected sales revenue.
   • DVariable overhead costs.

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   Answer: B

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3. Question 333 · 336 in bank

   Internal auditors are reviewing change management processes involving the organization’s IT department. Which of the following is a characteristic of an ineffective change management process that would impact the organization’s clients?

   • AProjects delays result in lost opportunities in emerging markets against the competition.
   • BFlaws in the network create the risk of premature press releases that describe details about upcoming products.
   • CChanging priorities result in resources being moved from planned IT projects to unplanned projects.
   • DStaffing shortages result in prolonged delays related to addressing concerns about services.

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   Answer: D

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4. Question 334 · 336 in bank

   An internal auditor reviews consolidated financial statements for a group of organizations. Which of the following risks should the auditor consider?

   • AThe statements may conceal poor performance of a subsidiary within the group.
   • BThe statements will not reflect business areas under common control.
   • CThe statements will not indicate total wealth controlled by the parent company.
   • DThe statements may be misleading due to inclusion of transactions between members of the group.

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   Answer: A

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5. Question 335 · 336 in bank

   An internal auditor is auditing their organization’s termination process. A primary objective of this engagement is to verify that exit interviews were conducted for all terminated employees over the last two years. The auditor discovered that not all employees received exit interviews. Which of the following risks could this lead to?

   • AThe risk of employee turnover.
   • BThe risk of noncompliance with a local labor law.
   • CThe risk of incorrect severance payments.
   • DThe risk of a confidentiality breach.

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   Answer: D

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6. Question 336 · 336 in bank

   During a payroll audit, the internal auditor is assessing the security of the local area network of the payroll department computers. Which of the following IT controls should the auditor test?

   • AIT application-based controls.
   • BIT systems development controls.
   • CEnvironmental controls.
   • DIT governance controls.

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   Answer: C

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IIA-CIA-PART3 practice, question 331. 336 questions available.