IIA-CIA-Part3-3P Exam Practice Test Instant Access

Question 1

Which of the following is likely to occur when an organization decides to adopt a decentralized organizational structure?

AA slower response to external change.

BLess controlled decision making.

CMore burden on higher-level managers.

DLess use of employees' true skills and abilities.

Answer : B

Question 2

According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?

AProject portfolio.

BProject development.

CProject governance.

DProject management methodologies.

Answer : D

Question 3

A clothing company sells shirts for $8 per shirt. In order to break even, the company must sell 25,000 shirts. Actual sales total $300,000.

What is margin of safety sales for the company?

A$100,000

B$200,000

C$275,000

D$500,000

Answer : B

Question 4

A bond that matures after one year has a face value of $250,000 and a coupon of $30,000. If the market price of the bond is $265,000, which of the following would be the market interest rate?

ALess than 12 percent.

B12 percent.

CBetween 12.01 percent and 12.50 percent.

DMore than 12.50 percent.

Answer : A

Question 5

Which of the following statements is true regarding an investee that received a dividend distribution from an entity and is presumed to have little influence over the entity?

AThe cash dividends received increase the investee investment account accordingly.

BThe investee must adjust the investment account by the ownership interest.

CThe investment account is adjusted downward by the percentage of ownership.

DThe investee must record the cash dividends as dividend revenue.

Answer : D

Question 6

A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.

Which of the following organizational structures does this situation represent?

AFunctional departmentalization.

BProduct departmentalization.

CMatrix organization.

DDivisional organization.

Answer : A

Question 7

When would a contract be closed out?

AWhen there's a dispute between the contracting parties.

BWhen all contractual obligations have been discharged.

CWhen there is a force majeure.

DWhen the termination clause is enacted.

Answer : B

IIA-CIA-Part3-3P CIA Exam Part Three: Business Knowledge for Internal Auditing Exam Practice Test