IIA-CIA-Part3 Free Practice Test

- (Exam Topic 1)
In mergers and acquisitions, which of the following is an example of a horizontal combination?

1. A. Dairy manufacturing company taking over a large dairy farm.
2. B. A movie producer acquires movie theaters.
3. C. A petroleum processing company acquires an agro-processing firm.
4. D. A baker taking over a competitor.

Correct Answer: D

- (Exam Topic 2)
Which of the following stages of contracting focuses on aligning the markets with objectives of the organization?

1. A. Initiation stage
2. B. Bidding stage
3. C. Development stage
4. D. Negotiation stage

Correct Answer: D

- (Exam Topic 2)
According to Maslow's hierarchy of needs theory, which of the Mowing best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

1. A. Esteem by colleagues
2. B. Sell-fulfillment
3. C. Sense of belonging in the organization
4. D. Job security

Correct Answer: B

- (Exam Topic 1)
Which mindset promotes the most comprehensive risk management strategy?

1. A. Increase shareholder value.
2. B. Maximize market share.
3. C. Improve operational efficiency.
4. D. Mitigate losses.

Correct Answer: A

- (Exam Topic 1)
When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?
* 1. Management’s tolerance for specific risks.
* 2. The cost versus benefit of implementing a control.
* 3. Whether a control can mitigate multiple risks.
* 4. The ability to test the effectiveness of the control.

1. A. 1, 2, and 3
2. B. 1, 2, and 4
3. C. 1, 3, and 4
4. D. 2, 3, and 4

Correct Answer: C