Certified Internal Auditor - Part 3 Business Analysis and Information Technology Exam Questions

Here you have the best IIA IIA-CIA-Part3 practice exam questions.

Some things you may want to keep in mind about this practice exam questions:

You have 226 total questions to study from
Each page has 5 questions, making a total of 46 pages
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This questions were last updated on September 11, 2024

Question 1 of 226

The first stage in the development of a crisis management program is to:

A.

Formulate contingency plans.

B.

Conduct a risk analysis.

C.

Create a crisis management team.

D.

Practice the response to a crisis.

Correct Answer: C

The first stage in the development of a crisis management program is to create a crisis management team. This is because establishing a dedicated team or group responsible for managing and coordinating all aspects of crisis response is fundamental. This team will be tasked with conducting subsequent stages such as risk analysis, formulating contingency plans, and practicing responses to crises.

Question 2 of 226

Which of the following steps should an internal auditor take during an audit of an organization's business continuity plans?

1. Evaluate the business continuity plans for adequacy and currency.

2. Prepare a business impact analysis regarding the loss of critical business.

3. Identify key personnel who will be required to implement the plans.

4. Identify and prioritize the resources required to support critical business processes.

A.

1 only

B.

2 and 4 only

C.

1, 3, and 4 only

D.

1, 2, 3, and 4

Correct Answer: C

During an audit of an organization's business continuity plans, an internal auditor should evaluate the business continuity plans for adequacy and currency to ensure they are up-to-date and relevant (1). The auditor should also identify key personnel who will be required to implement the plans, as having the right people in place is crucial for effective execution during a crisis (3). Additionally, it is important to identify and prioritize the resources required to support critical business processes to ensure that the organization can maintain essential operations during a disruption (4). Preparing a business impact analysis (2) is typically not within the scope of an audit but more aligned with the development and maintenance of the business continuity plan itself.

Question 3 of 226

Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

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.

B.

The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.

C.

The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.

D.

50 percent of total organizational cost has been allocated on a volume basis.

Correct Answer: D

Option D reflects a situation where a chosen method of cost allocation (volume-based) might not necessarily indicate a critical error or a malfunction in the cost accounting system. While it may not be the most accurate method for all circumstances, it does not demonstrate a clear monetary loss or competitive disadvantage as the other options do. Management might see less urgency in changing the system based solely on the allocation method, unlike the significant financial losses and competitive issues presented in options A, B, and C.

Question 4 of 226

For an engineering department with a total quality management program, important elements of quality management include all of the following except:

A.

Basing performance evaluations on the number of projects completed.

B.

Comparing results with those of other engineering departments.

C.

Creating a quality council within the engineering department.

D.

Conducting post-project surveys on performance.

Correct Answer: A

Total Quality Management (TQM) focuses on continuous improvement, customer satisfaction, and systematic problem-solving. It emphasizes quality over quantity, teamwork, and long-term success rather than just meeting deadlines or completing a set number of projects. Therefore, basing performance evaluations solely on the number of projects completed does not align with TQM principles. Quality management should aim for the enhancement of processes and performance through comprehensive measures, not just numerical outputs.

Question 5 of 226

Refer to the exhibit.

The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?

A.

21 days.

B.

22 days.

C.

27 days.

D.

51 days.

Correct Answer: C

To determine the shortest number of days in which the project can be completed, we need to find the critical path, which is the longest path through the network. The possible paths and their durations are: A to B to D, which is 10 + 12 + 9 = 31 days, A to C to D, which is 10 + 8 + 9 = 27 days, and A to E, which is 10 + 12 = 22 days. The longest duration among these paths is 27 days for the A to C to D path. Therefore, the shortest number of days in which the project can be completed is 27 days.