IIA-CIA-PART3 practice questions 51–60

1. Question 51 · 336 in bank

   Based on test results, an IT auditor concluded that the organization would suffer unacceptable loss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

   • ARequested backup tapes were not returned from the offsite vendor in a timely manner.
   • BReturned backup tapes from the offsite vendor contained empty spaces.
   • CCritical systems have been backed up more frequently than required.
   • DCritical system backup tapes are taken off site less frequently than required

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   Answer: D

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2. Question 52 · 336 in bank

   Which of the following is a systems software control?

   • ARestricting server room access to specific individuals.
   • BHousing servers with sensitive software away from environmental hazards.
   • CEnsuring that all user requirements are documented.
   • DPerforming of intrusion testing on a regular basis.

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   Answer: D

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3. Question 53 · 336 in bank

   An organization has an established bring-your-own-device policy. Due to this policy, which of the following privacy risks would be most relevant to the organization?

   • AEmployees who consider updates of software or operating systems degrading to the performance of their devices might choose not to install the updates.
   • BConfidential intellectual property of the organization may be compromised if the smart device is physically lost.
   • CConcern by employees that the organization could intrusively monitor them through their smart devices.
   • DMalware may infect smart devices that contain the organization's confidential data if the device does not have adequate security restrictions.

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   Answer: B

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4. Question 54 · 336 in bank

   Which of the following statements pertaining to a market skimming pricing strategy is not true?

   • AThe strategy is favored when unit costs fall with the increase in units produced.
   • BThe strategy is favored when buyers are relatively insensitive to price increases.
   • CThe strategy is favored when there is insufficient market capacity and competitors cannot increase market capacity.
   • DThe strategy is favored when high price is perceived as high quality.

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   Answer: A

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5. Question 55 · 336 in bank

   An internal auditor found the following information while reviewing the monthly financial statements for a wholesaler of safety glasses: Opening inventory: 1,000 units at $2 per unit Purchased: 5,000 units at $3 per unit Sold: 3,000 units at $7 per unit The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?

   • AAverage cost method.
   • BFirst-in, first-out (FIFO) method.
   • CSpecific identification method.
   • DActivity-based costing method.

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   Answer: A

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6. Question 56 · 336 in bank

   Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

   • ABoth the key used to encrypt the data and the key used to decrypt the data are made public.
   • BThe key used to encrypt the data is kept private but the key used to decrypt the data is made public.
   • CThe key used to encrypt the data is made public but the key used to decrypt the data is kept private.
   • DBoth the key used to encrypt the data and the key used to decrypt the data are made private.

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   Answer: C

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7. Question 57 · 336 in bank

   Which of the following capital budgeting techniques considers the expected total net cash flows from investment?

   • ACash payback.
   • BAnnual rate of return.
   • CIncremental analysis.
   • DNet present value.

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   Answer: D

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8. Question 58 · 336 in bank

   A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

   • ALack of coordination among different business units.
   • BOperational decisions are inconsistent with organizational goals.
   • CSuboptimal decision-making.
   • DDuplication of business activities.

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   Answer: C

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9. Question 59 · 336 in bank

   The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:

   • AThere is an external market for that service.
   • BThe selling department operates at 50 percent of its capacity.
   • CThe purchasing department has more negotiating power than the selling department.
   • DThere is no external market for that service.

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   Answer: A

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10. Question 60 · 336 in bank

    Which of the following statements is true regarding the capital budgeting procedure known as discounted payback period?

    • AIt calculates the overall value of a project.
    • BIt ignores the time value of money.
    • CIt calculates the time a project takes to break even.
    • DIt begins at time zero for the project.

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    Answer: C

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IIA-CIA-PART3 practice, question 51. 336 questions available.