Which of the following is a characteristic of using a hierarchical control structure?

Less organizational commitment by employees.

Less use of policies and procedures.

Less organizational commitment by employees.

Less emphasis on extrinsic rewards.

According to 11A guidance on IT, which of the following spreadsheets is most likely to be considered a high-risk user-developed application?

An ad-hoc inventory listing spreadsheet comprising details of written-off inventory quantities.

A revenue calculation spreadsheet supported with price and volume reports from the production department.

An asset retirement calculation spreadsheet comprised of multiple formulas and assumptions.

An ad-hoc inventory listing spreadsheet comprising details of written-off inventory quantities.

An accounts receivable reconciliation spreadsheet used by the accounting manager to verify balances

Which of the following scenarios indicates an effective use of financial leverage?

An organization has a current ratio of 2 and an inventory turnover of 12.

An organisation has a rate of return on equity of 20% and a rate of return on assets of 15%.

An organization has a current ratio of 2 and an inventory turnover of 12.

An organization has a debt to total assets ratio of 0.2 and an interest coverage ratio of 10.

An organization has a profit margin of 30% and an assets turnover of 7%.

Which of the following is the most appropriate beginning step of a work program for an assurance engagement involving smart devices?

Obtain a list of all smart devices in use

Train all employees on bring-your-own-device (BYOD) policies.

Understand what procedures are in place for locking lost devices

Obtain a list of all smart devices in use

Test encryption of all smart devices

Which of the following situations best illustrates a "false positive" in the performance of a spam filter?

The spam filter blocked a fitness club gift card that coworkers sent to an employee for her birthday.

The spam filter removed Incoming communication that included certain keywords and domains.

The spam filter deleted commercial ads automatically, as they were recognized as unwanted.

The spam filter routed to the "junk|r folder a newsletter that appeared to include links to fake websites.

The spam filter blocked a fitness club gift card that coworkers sent to an employee for her birthday.

An organization decided to outsource its human resources function. As part of its process migration, the organization is implementing controls over sensitive employee data.What would be the most appropriate directive control in this area?

Include a data protection clause in the contract with the service provider.

Require a Service Organization Controls (SOC) report from the service provider

Include a data protection clause in the contract with the service provider.

Obtain a nondisclosure agreement from each employee at the service provider who will handle sensitive data.

Encrypt the employees ' data before transmitting it to the service provider

An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided.

Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.

Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.

Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.

At one organization, the specific terms of a contract require both the promisor and promisee to sign the contract in the presence of an independent witness. What is the primary role to the witness to these signatures?

A witness validates that the signatures on the contract were signed by the promisor and promisee.

A witness verifies the quantities of the copies signed.

A witness verifies that the contract was signed with the free consent of the promisor and promisee.

A witness ensures the completeness of the contract between the promisor and promisee.

A witness validates that the signatures on the contract were signed by the promisor and promisee.

Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

The organization sells inventory to an overseas subsidiary at the original cost.

The organization sells inventory to an overseas subsidiary at fair value.

The local subsidiary purchases inventory at a discounted price.

The organization sells inventory to an overseas subsidiary at the original cost.

The local subsidiary purchases inventory at the depreciated cost.

Which of the following statements is true regarding user-developed applications (UDAs)?

Updating UDAs may lead to various errors resulting from changes or corrections.

UDAs are less flexible and more difficult to configure than traditional IT applications.

Updating UDAs may lead to various errors resulting from changes or corrections.

UDAs typically are subjected to application development and change management controls.

Using UDAs typically enhances the organization's ability to comply with regulatory factors.

Which of the following scenarios best illustrates a spear phishing attack?

A person received a personalized email regarding a golf membership renewal, and he clicked a hyperlink to enter his credit card data into a fake website.

Numerous and consistent attacks on the company's website caused the server to crash and service was disrupted.

A person posing as a representative of the company's IT help desk called several employees and played a generic prerecorded message requesting password data.

A person received a personalized email regarding a golf membership renewal, and he clicked a hyperlink to enter his credit card data into a fake website.

Many users of a social network service received fake notifications of a unique opportunity to invest in a new product

An organization discovered fraudulent activity involving the employee time-tracking system. One employee regularly docked in and clocked out her co-worker friends on their days off, inflating their reported work hours and increasing their wages. Which of the following physical authentication devices would be most effective at disabling this fraudulent scheme?

A combination of a smart card and a password to clock in and clock out.

Face or finger recognition equipment,

Radiofrequency identification chips to authenticate employees with cards.

A requirement to clock in and clock out with a unique personal identification number.

A combination of a smart card and a password to clock in and clock out.

Which of the following best describes owner's equity?

Owners contribution plus drawings.

Which of the following describes a mechanistic organizational structure?

Reliance on self-control tends to be low.

Primary direction of communication tends to be lateral.

Definition of assigned tasks tends to be broad and general.

Type of knowledge required tends to be broad and professional.

Reliance on self-control tends to be low.

During an audit of the payroll system, the internal auditor identifies and documents the following condition:"Once a user is logged into the system, the user has access to all functionality within the system." What is the most likely root cause for tins issue?

The system authorization of the user does not correctly reflect the access rights intended.

The authentication process relies on a simple password only, which is a weak method of authorization.

The system authorization of the user does not correctly reflect the access rights intended.

There was no periodic review to validate access rights.

The application owner apparently did not approve the access request during the provisioning process.

Which of the following lists best describes the classification of manufacturing costs?

Overhead costs, direct labor, direct materials.

Direct materials, indirect materials, raw materials.

Overhead costs, direct labor, direct materials.

Direct materials, direct labor, depreciation on factory buildings.

Raw materials, factory employees' wages, production selling expenses.

Which of the following is an effective preventive control for data center security?

Key card access to the facility.

Monitoring access to data center workstations

According to IIA guidance on IT, which of the following strategies would provide the most effective access control over an automated point-of-sale system?

Set data availability by user need.

Install and update anti-virus software.

Implement data encryption techniques.

Set data availability by user need.

Which of the following data security policies is most likely to be the result of a data privacy law?

Access to personally identifiable information is limited to those who need It to perform their job.

Confidential data must be backed up and recoverable within a 24-hour period.

Updates to systems containing sensitive data must be approved before being moved to production.

A record of employees with access to insider information must be maintained, and those employees may not trade company stock during blackout periods

Which of the following techniques would best detect an inventory fraud scheme?

Analyze inventory invoice amounts and compare with approved contract amounts.

Analyze Invoice payments just under individual authorization limits.

Analyze stratification of inventory adjustments by warehouse location.

Analyze inventory invoice amounts and compare with approved contract amounts.

Analyze differences discovered during duplicate payment testing

Management has decided to change the organizational structure from one that was previously decentralized to one that is now highly centralized. As such: which of the following would be a characteristic of the now highly centralized organization?

Reliance is placed on top management decision making by few of the organization's departments.

Top management does little monitoring of the decisions made at lower levels.

The decisions made at the lower levels of management are considered very important.

Decisions made at lower levels in the organizational structure are few.

Reliance is placed on top management decision making by few of the organization's departments.

Which of the following would most likely serve as a foundation for individual operational goats?

Targets of key performance indicators

Individual skills and capabilities.

Alignment with organizational strategy.

Financial and human resources of the unit.

Targets of key performance indicators

According to 11A guidance on IT, which of the following are indicators of poor change management?

Unavailability of critical services.

Which of the following biometric access controls uses the most unique human recognition characteristic?

Facial comparison using photo identification.

An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization's needs, in order to quickly recover operational capability in the event of a disaster, Which of the following best describes this approach to disaster recovery planning?

Storage area network recovery plan.

Which of the following actions would senior management need to consider as part of new IT guidelines regarding the organization's cybersecurity policies?

Hiring new personnel within the IT department for security purposes.

Assigning new roles and responsibilities for senior IT management.

Growing use of bring your own devices for organizational matters.

Expansion of operations into new markets with limited IT access.

Hiring new personnel within the IT department for security purposes.

IIA IIA-CIA-Part3 Practice Test 1 - Free Online Exam Prep & Questions

Which of the following best describes the purpose of fixed manufacturing costs?

To ensure availability of production facilities.

To decrease direct expenses related to production.

To incur stable costs despite operating capacity.

To increase the total unit cost under absorption costing

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