Which of the following best explains why an organization would enter into a capital lease contract?

To Improve the organization's free cash flow from operations

To increase the ability to borrow additional funds from creditors

To reduce the organization's free cash flow from operations

To Improve the organization's free cash flow from operations

To acquire the asset at the end of the lease period at a price lower than the fair market value

When using data analytics during a review of the procurement process, what is the first step in the analysis process?

Identify data sources available.

Identify data anomalies and outliers.

Define questions to be answered.

Identify data sources available.

Determine the scope of the data extract

Which of the following responsibilities would ordinary fall under the help desk function of an organization?

Management of infrastructure services, including network management.

Maintenance service items such as production support.

Management of infrastructure services, including network management.

Physical hosting of mainframes and distributed servers

End-to -end security architecture design.

Which of the following statements, is true regarding the capital budgeting procedure known as discounted payback period?

It calculates the time a project takes to break even.

It calculates the overall value of a project.

It ignores the time value of money.

It calculates the time a project takes to break even.

It begins at time zero for the project.

Which of the following is true of matrix organizations?

A combination of product and functional departments allows management to utilize personnel from various Junctions.

A unity-of-command concept requires employees to report technically, functionally, and administratively to the same manager.

A combination of product and functional departments allows management to utilize personnel from various Junctions.

Authority, responsibility and accountability of the units Involved may vary based on the project's life, or the organization's culture

It is best suited for firms with scattered locations or for multi-line, Large-scale firms.

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

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

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

Which of the following techniques would best detect on 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 curing duplicate payment testing.

Which of the following is a systems software control?

Performing of intrusion testing on a regular basis

Restricting server room access to specific individuals

Housing servers with sensitive software away from environmental hazards

Ensuring that all user requirements are documented

Performing of intrusion testing on a regular basis

Which of the following statements is true regarding cost-volume-profit analysis?

Breakeven occurs when the contribution margin covers fixed costs.

Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.

Breakeven point is the amount of units sold to cover variable costs.

Breakeven occurs when the contribution margin covers fixed costs.

Following breakover1, he operating income will increase by the excess of fixed costs less the variable costs per units sold.

An internal auditor observed that the organization's disaster recovery solution will make use of a cold site in a town several miles away. Which of the following is likely to be a characteristic of this disaster recover/ solution?

Servers are not available and need to be procured

Data is synchronized in real time

Recovery time is expected to be less than one week

Servers are not available and need to be procured

Recovery resources end data restore processes have not been defined.

An internal auditor found the following information while reviewing the monthly financial siatements for a wholesaler of safety The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?

First-in, first-out (FIFO) method

According to Herzberg's Two-Factor Theory of Motivation, which of the following factors arc mentioned most often by satisfied employees?

Peer relationships and personal life

Which of the following statements is true regarding the management-by-objectives method?

Management by objectives helps organizations to keep employees motivated.

Management by objectives is most helpful in organizations that have rapid changes.

Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.

Management by objectives helps organizations to keep employees motivated.

Management by objectives helps organizations to distinguish clearly strategic goals from operational goals.

Based on lest results, an IT auditor concluded that the organization would suffer unacceptable loss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

Critical system backup tapes are taken off site less frequently than required

Requested backup tapes were not returned from the offsite vendor In a timely manner.

Returned backup tapes from the offsite vendor contained empty spaces.

Critical systems have boon backed up more frequently than required.

Critical system backup tapes are taken off site less frequently than required

Which of the following statements. Is most accurate concerning the management and audit of a web server?

Secure protocols for confidential pages should be used instead of dear-text protocols such as HTTPor FTP.

The file transfer protocol (FTP) should always be enabled.

The simple mail transfer protocol (SMTP) should be operating under the most privileged accounts.

The number of ports and protocols allowed to access the web server should be maximized.

Secure protocols for confidential pages should be used instead of dear-text protocols such as HTTPor FTP.

According to IIA guidance, which of the following statements is true with regard to workstation computers that access company Information stored on the network?

Cyber security issues can be controlled at an enterprise level, making workstation level controls redundant.

Individual workstation computer controls are not as important as companywide server controls.

Particular attention should be paid to housing workstations away from environmental hazards.

Cyber security issues can be controlled at an enterprise level, making workstation level controls redundant.

With security risks near an all-time high, workstations should not be connected to the company network.

At one organization, the specific terms of a contract require both the promisor end promise 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 tire promisor and promise.

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 promise.

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

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

According to IIA guidance on IT, which of the following would be considered a primary control for a spreadsheet to help ensure accurate financial reporting?

Formulas and static data are locked or protected.

The spreadsheet is stored on a network server that is backed up daily.

The purpose and use of the spreadsheet are documented.

Check-in and check-out software is used to control versions.

An organization and its trading partner rely on a computer-to-computer exchange of digital business documents. Which of the following best describes this scenario?

Use of electronic data Interchange

Use of a central processing unit

Use of a database management system

Use of electronic data Interchange

With regard to disaster recovery planning, which of the following would most likely involve stakeholders from several departments?

Prioritizing the order in which business systems would be restored.

Determining the frequency with which backups will be performed.

Prioritizing the order in which business systems would be restored.

Assigning who in the IT department would be involved in the recovery procedures.

Assessing the resources needed to meet the data recovery objectives.

A large retail customer made an offer to buy 10.000 units at a special price of $7 per unit. The manufacturer usually sells each unit for §10, Variable Manufacturing costs are 55 per unit and fixed manufacturing costs are $3 per unit. For the manufacturer to accept the offer, which of the following assumptions needs to be true?

Costs related to accepting this offer can be absorbed through the sale of other products.

Fixed and Variable manufacturing costs are less than the special offer selling price.

The manufacturer can fulfill the order without expanding the capacities of the production facilities.

Costs related to accepting this offer can be absorbed through the sale of other products.

The manufacturer's production facilities are currently operating at full capacity.

For employees, the primary value of implementing job enrichment is which of the following?

Support for personal growth and a meaningful work experience

Validation of the achievement of their goals anti objectives

Increased knowledge through the performance of additional tasks

Support for personal growth and a meaningful work experience

An increased opportunity to manage better the work done by their subordinates

Which of the following situations best applies to an organisation that uses a project, rather than a process, to accomplish its business activities?

A commercial construction company is hired to build a warehouse.

Clothing company designs, makes, and sells a new item.

A commercial construction company is hired to build a warehouse.

A city department sets up a new firefighter training program.

A manufacturing organization acquires component parts from a contracted vendor

Which of the following is an example of a physical control?

Providing fire detection and suppression equipment

Establishing a physical security policy and promoting it throughout the organization

Performing business continuity and disaster recovery planning

Keeping an offsite backup of the organization's critical data

As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized cate?

The auditor organized data to minimize useless information.

The auditor eliminated duplicate information.

The auditor organized data to minimize useless information.

The auditor made data usable for a specific purpose by ensuring that anomalies were Identified and corrected.

The auditor ensured data fields were consistent and that data could be used for a specific purpose.

A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager. Which of the following organizational structures does this situation represent?

Functional departmentalization.

Which of the following is a likely result of outsourcing?

Decreased sensitivity to government regulation

Increased dependence on suppliers.

Increased importance of market strategy.

Decreased sensitivity to government regulation

While auditing an organization's customer call center, an internal auditor notices that Key performance indicators show a positive trend, despite the fact that there have been increasing customer complaints over the same period. Which of the following audit recommendations would most likely correct the cause of this inconsistency?

Review the call center script used by customer service agents to interact with callers, and update the script if necessary.

Be-emphasize the importance of call center employees completing a certain number of calls per hour.

Retrain call center staff on area processes and common technical issues that they will likely be asked to resolve.

Increase the incentive for call center employees to complete calls quickly and raise the number of calls completed daily

A one-time password would most likely be generated in which of the following situations?

When an employee uses a key fob to produce a token.

When an employee accesses an online digital certificate

When an employee's biometrics have been accepted.

When an employee creates a unique digital signature,

When an employee uses a key fob to produce a token.

Which of the following is the best example of IT governance controls?

Standards that support IT policies by more specifically defining required actions

Controls that focus on segregation of duties, financial, and change management,

Personnel policies that define and enforce conditions for staff in sensitive IT areas.

Standards that support IT policies by more specifically defining required actions

Controls that focus on data structures and the minimum level of documentation required

Which of the following is a disadvantage in a centralized organizational structure?

Vulnerabilities in sharing knowledge

According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?

Project management methodologies

Which of the following controls would be the most effective in preventing the disclosure of an organization's confidential electronic information?

limited access so information, based on employee duties

Nondisclosure agreements between the firm and its employees.

Logs of user activity within the information system.

Two-factor authentication for access into the information system.

limited access so information, based on employee duties

IIA IIA-CIA-Part3 Practice Test 5 - Free Online Exam Prep & Questions

An organization that soils products to a foreign subsidiary wants to charge a price that wilt decrease import tariffs. Which of the following is the best course of action for the organization?

Decrease the transfer price

Increase the transfer price

Charge at the arm's length price

Charge at the optimal transfer price

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