IIA-CIA-Part3 Free Practice Test

- (Exam Topic 1)
Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?

1. A. A flexible budget.
2. B. Variance analysis.
3. C. A contribution margin income statement by segment.
4. D. Residual income.

Correct Answer: D

- (Exam Topic 1)
Which of the following is not a barrier to effective communication?

1. A. Filtering.
2. B. Communication overload.
3. C. Similar frames of reference.
4. D. Lack of source credibility.

Correct Answer: C

- (Exam Topic 1)
Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

1. A. The internal auditor may cite the use of other standards during audit communications.
2. B. If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.
3. C. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.
4. D. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.

Correct Answer: D

- (Exam Topic 2)
An organization has received funding to continue a program that utilizes an in-house Due to new legislative requirements the application will require additional features to capture information not previously collected Which of the following is the most critical for completing this specific project?

1. A. A detailed budget that identifies hardware resources for the project
2. B. A Gantt chart that identifies the critical path for completing the project
3. C. Change management controls to avoid technical conflicts within the application
4. D. A project plan with a flexible scope to accommodate legislative requirements

Correct Answer: C

- (Exam Topic 2)
The mobility of personal smart devices significantly increases which of the following risks?

1. A. Data integrity risks
2. B. Compliance risks.
3. C. Physical security risks
4. D. Privacy risks

Correct Answer: C