IIA-CIA-Part3 Free Practice Test

- (Exam Topic 1)
Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?

1. A. Control environment.
2. B. Control activities.
3. C. Information and communication.
4. D. Monitoring.

Correct Answer: A

- (Exam Topic 2)
Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

1. A. Logical access controls monitor application usage and generate audit trails.
2. B. The development process is designed to prevent, detect and correct errors that may occur
3. C. A record is maintained to track the process of data from input, to output, to storage
4. D. Business users' requirements are documented, and their achievement is monitored

Correct Answer: D

- (Exam Topic 2)
Which of me Wowing summarizes information about the cash receipts and cash payments for a specific time period?

1. A. Income statement
2. B. Statement of cash flows.
3. C. Balance sheet
4. D. Owner's equity statement

Correct Answer: B

- (Exam Topic 1)
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

1. A. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
2. B. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
3. C. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
4. D. 50 percent of total organizational cost has been allocated on a volume basis.

Correct Answer: D

- (Exam Topic 1)
One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:

1. A. Program versions are synchronized across the network.
2. B. Emergency move procedures are documented and followed.
3. C. Appropriate users are involved in program change testing.
4. D. Movement from the test library to the production library is controlled.

Correct Answer: A