IIA-CIA-Part3 Exam Practice Test Instant Access

Question 1

Which of the following statements is true regarding activity-based costing (ABC)?

AAn ABC costing system is similar to conventional costing systems in how it treats the allocation of manufacturing overhead.

BAn ABC costing system uses a single unit-level basis to allocate overhead costs to products.

CAn ABC costing system may be used with either a job order or a process cost accounting system.

DThe primary disadvantage of an ABC costing system is less accurate product costing.

Answer : C

Question 2

Which of the following would be the best method to collect information about employees' job satisfaction?

AOnline surveys sent randomly to employees.

BDirect onsite observations of employees.

CTown hall meetings with employees.

DFace-to-face interviews with employees.

Answer : D

Question 3

According to IIA guidance, which of the following statements is true regarding penetration testing?

ATesting should not be announced to anyone within the organization to solicit a real-life response.

BTesting should take place during heavy operational time periods to test system resilience.

CTesting should be wide in scope and primarily address detective management controls for identifying potential attacks.

DTesting should address the preventive controls and management's response.

Answer : B

Question 4

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.

Answer : A

Question 5

A financial institution receives frequent and varied email requests from customers for funds to be wired out of their accounts. Which verification activity would best help the institution avoid falling victim to phishing?

AReviewing the customer's wire activity to determine whether the request is typical.

BCalling the customer at the phone number on record to validate the request.

CReplying to the customer via email to validate the sender and request.

DReviewing the customer record to verify whether the customer has authorized wire requests from that email address.

Answer : B

Question 6

Which of the following common quantitative techniques used in capital budgeting is best associated with the use of a table that describes the present value of an annuity?

ACash payback technique.

BDiscounted cash flow technique: net present value.

CAnnual rate of return

DDiscounted cash flow technique: internal rate of return.

Answer : B

Question 7

Which of the following best describes the use of predictive analytics?

AA supplier of electrical parts analyzed an instances where different types of spare parts were out of stock prior to scheduled deliveries of those parts.

BA supplier of electrical parts analyzed sales, applied assumptions related to weather conditions, and identified locations where stock levels would decrease more quickly.

CA supplier of electrical parts analyzed all instances of a part being, out of stock poor to its scheduled delivery date and discovered that increases in sales of that part consistently correlated with stormy weather.

DA supplier of electrical parts analyzed sales and stock information and modelled different scenarios for making decisions on stock reordering and delivery

Answer : B

IIA-CIA-Part3 Certified Internal Auditor-Internal Audit Knowledge Elements Exam Practice Test