IIA-CIA-PART3-3P Online Practice Questions and Answers

According to the International Professional Practices Framework, which of the following statements is true

regarding a corporate social responsibility (CSR) program?

1) Every employee generally has a responsibility for ensuring the success of CSR objectives.

2) The board has overall responsibility for the effectiveness of internal control processes associated with

CSR.

3) Public reporting on the CSR governance process is expected.

4) Organizations generally have flexibility regarding what is included in a CSR program.

A. 1, 2, and 3 only

B. 1, 2, and 4 only

C. 1, 3, and 4 only

D. 2, 3, and 4 only

Which of the following budgets must be prepared first?

A. Cash budget.

B. Production budget.

C. Sales budget.

D. Selling and administrative expenses budget.

Which is the least effective form of risk management?

A. Systems-based preventive control.

B. People-based preventive control.

C. Systems-based detective control.

D. People-based detective control.

A key advantage of developing a computer application by using the prototyping approach is that it:

A. Does not require testing for user acceptance.

B. Allows applications to be portable across multiple system platforms.

C. Is less expensive since it is self-documenting.

D. Better involves users in the design process.

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?

1) It significantly raises compensation and staffing costs.

2) It produces resentment among the organization's employees in host countries.

3) It limits career mobility for parent-country nationals.

4) It can lead to cultural myopia.

A. 1 and 4 only

B. 2 and 3 only

C. 1, 2, and 3 only

D. 1, 2, and 4 only

When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

A. Identifying risks to the organization's operations.

B. Observing and analyzing controls.

C. Prioritizing known risks.

D. Reviewing organizational objectives.

Which of the following would provide the most relevant assurance that the application under development will provide maximum value to the organization?

A. Use of a formal systems development lifecycle.

B. End-user involvement.

C. Adequate software documentation.

D. Formalized non-regression testing phase.

Which of the following is most important for an internal auditor to check with regard to the database version?

A. Verify whether the organization uses the most recent database software version

B. Verify whether the database software version is supported by the vendor.

C. Verify whether the database software version has been recently upgraded

D. Verify whether access to database version information is appropriately restricted

Which of me following is applicable to both a job order cost system and a process cost system?

A. Total manufacturing costs are determined at the end of each period.

B. Costs are summarized in a production cost repot for each department

C. Three manufacturing cost elements are tracked direct materials direct labor and manufacturing overhead.

D. The unit cost can be calculated by dividing the total manufacturing costs for the period by the units produced during the period

An organization is developing a new online collaboration tool for employees. The tool includes a homepage that is customized to each employee according to his department and job function Which of the following engagements should be conducted to ensure that the organization has included all departments and job functions in the system before it is implemented?

A. An application control review

B. A source code review

C. A design review

D. An access control review