Which of the following Issues would be a major concern for internal auditors when using a free software to analyze a third-party vendor's big data?

The ability to ensure that big data entered into the software is secure from potential compromises or loss.

The ability to use the software with ease to perform the data analysis to meet the engagement objectives.

The ability to purchase upgraded features of the software that allow for more In-depth analysis of the big data.

The ability to ensure that big data entered into the software is secure from potential compromises or loss.

The ability to download the software onto the appropriate computers for use in analyzing the big data.

Which of the following statements is true concerning the basic accounting treatment of a partnership?

The initial investment of each partner should be recorded at book value.

The ownership ratio identifies the basis for dividing net income and net toss.

A partner's capital only changes due to net income or net loss.

The basis for sharing net incomes or net kisses must be fixed.

According to IIA guidance, which of the following is an IT project success factor?

Consideration of the facts, rather than consideration of the emotions displayed by project stakeholders.

Streamlined decision-making, rather than building consensus among users.

Consideration of the facts, rather than consideration of the emotions displayed by project stakeholders.

Focus on flexibility and adaptability, rather than use of a formal methodology.

Inclusion of critical features, rather than inclusion of an array of supplementary features.

An organization buys equity securities for trading purposes and sells them within a short time period.Which of the following is the correct way to value and report those securities at a financial statement date?

At fair value with changes reported in net income.

At fair value with changes reported in the shareholders' equity section.

At fair value with changes reported in net income.

At amortized cost in the income statement.

As current assets in the balance sheet

If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?

Cash may be bed up in items not generating financial value.

Settlement of short-term obligations may become difficult.

Cash may be bed up in items not generating financial value.

Collection policies of the organization are ineffective.

The organization is efficient in using assets to generate revenue.

An IT auditor is evaluating IT controls of a newly purchased information system. The auditor discovers that logging is not configured al database and application levels. Operational management explains that they do not have enough personnel to manage the logs and they see no benefit in keeping logs. Which of the fallowing responses best explains risks associated with insufficient or absent logging practices?

The organization will be unable to determine why intrusions and cyber incidents took place.

The organization will be unable to develop preventative actions based on analytics.

The organization will not be able to trace and monitor the activities of database administers.

The organization will be unable to determine why intrusions and cyber incidents took place.

The organization will be unable to upgrade the system to newer versions.

Which of the following statements distinguishes a router from a typical switch?

A router connects networks, while a switch connects devices within a network.

A router operates at layer two. while a switch operates at layer three of the open systems interconnection model.

A router transmits data through frames, while a switch sends data through packets.

A router connects networks, while a switch connects devices within a network.

A router uses a media access control address during the transmission of data, whie a switch uses an internet protocol address.

According to I1A guidance on IT. which of the following activities regarding information security Is most likely to be the responsibility of line management as opposed to executive management, internal auditors, or the board?

Dedicate sufficient security resources.

Review and monitor security controls.

Dedicate sufficient security resources.

Provide oversight to the security function.

Assess information control environments.

Which of the following best describes the use of predictive analytics?

A supplier of electrical parts analyzed sales, applied assumptions related to weather conditions, and identified locations where stock levels would decrease more quickly.

A supplier of electrical parts analyzed an instances where different types of spare parts were out of stock prior to scheduled deliveries of those parts.

A supplier of electrical parts analyzed sales, applied assumptions related to weather conditions, and identified locations where stock levels would decrease more quickly.

A supplier of electrical parts analyzed all instances of a part being, out of stock poor to its scheduled delivery date and discovered that increases in sales of that part consistently correlated with stormy weather.

A supplier of electrical parts analyzed sales and stock information and modelled different scenarios for making decisions on stock reordering and delivery

Which of the following common quantitative techniques used in capital budgeting is best associated with the use of a table that describes the present value of an annuity?

Discounted cash flow technique: net present value.

Discounted cash flow technique: internal rate of return.

Which of the following is a characteristic of big data?

Big data analytic results often need to be visualized.

Big data is often generated slowly and is highly variable.

Big data comes from internal sources kept in data warehouses.

On the last day of the year, a total cost of S 150.000 was incurred in indirect labor related to one of the key products an organization makes. How should the expense be reported on that year's financial statements?

It should be reported as cost of goods sold on the income statement.

It should be reported as an administrative expense on the income statement.

It should be reported as period cost other than a product cost on the management accounts

It should be reported as cost of goods sold on the income statement.

It should be reported on the balance sheet as part of inventory.

An organization has an immediate need for servers, but no time to complete capital acquisitions.Which of the following cloud services would assist with this situation?

Infrastructure as a Service (laaS).

Enterprise as a Service (EaaS).

Which of the following would be the strongest control to prevent unauthorized wireless network access?

Permitting only authorized IT personnel to have administrative control of mobile devices.

Allowing access to the organization's network only through a virtual private network.

Logging devices that access the network, including the date. time, and identity of the user.

Tracking all mobile device physical locations and banning access from non-designated areas.

Permitting only authorized IT personnel to have administrative control of mobile devices.

Which of the following is an example of two-factor authentication?

The user's fingerprint and a personal Identification number.

The user's facial geometry and voice recognition.

The user's password and a separate passphrase.

The user's key fob and a smart card.

The user's fingerprint and a personal Identification number.

The internal audit activity has identified accounting errors that resulted in the organization overstating its net income for the fiscal year. Which of the following is the most likely cause of this overstatement?

Cost of goods sold was understated for the year.

Beginning inventory was overstated for the year.

Cost of goods sold was understated for the year.

Ending inventory was understated for the year.

Cost of goods sold was overstated for the year.

Which of the following is considered a physical security control?

System servers are secured by locking mechanisms with access granted to specific individuals.

Transaction logs are maintained to capture a history of system processing.

System security settings require the use of strong passwords and access controls.

Failed system login attempts are recorded and analyzed to identify potential security incidents.

System servers are secured by locking mechanisms with access granted to specific individuals.

Which of the following business practices promotes a culture of high performance?

Avoiding status differences among employees.

Reiterating the importance of compliance with established policies and procedures.

Celebrating employees' individual excellence.

Periodically rotating operational managers.

Avoiding status differences among employees.

An internal auditor has requested the organizational chart in order to evaluate the control environment of an organization. Which of the following is a disadvantage of using the organizational chart?

The organizational chart shows only formal relationships.

The organizational chart shows only the line of authority.

The organizational chart shows only the senior management positions.

The organizational chart is irrelevant when testing the control environment.

A financial institution receives frequent and varied email requests from customers for funds to be wired out of their accounts. Which verification activity would best help the institution avoid falling victim to phishing?

Calling the customer at the phone number on record to validate the request.

Reviewing the customer's wire activity to determine whether the request is typical.

Calling the customer at the phone number on record to validate the request.

Replying to the customer via email to validate the sender and request.

Reviewing the customer record to verify whether the customer has authorized wire requests from that email address.

Internal auditors want to increase the likelihood of identifying very small control and transaction anomalies in their testing that could potentially be exploited to cause material breaches. Which of the following techniques would best meet this objective?

Analysis of the full population of existing data.

Verification of the completeness and integrity of existing data.

Continuous monitoring on a repetitive basis.

Analysis of the databases of partners, such as suppliers.

An internal auditor discusses user-defined default passwords with the database administrator. Such passwords will be reset as soon as the user logs in for the first time, but the initial value of the password is set as "123456." Which of the following are the auditor and the database administrator most likely discussing in this situation?

What happens in the situations where users continue using the initial password.

Whether it would be more secure to replace numeric values with characters.

What happens in the situations where users continue using the initial password.

What happens in the period between the creation of the account and the password change.

Whether users should be trained on password management features and requirements.

Which of the following should internal auditors be attentive of when reviewing personal data consent and opt-in/opt-out management process?

Whether the organization has established explicit and entitywide policies on data transfer to third parties.

Whether customers are asked to renew their consent for their data processing at least quarterly.

Whether private data is processed in accordance with the purpose for which the consent was obtained?

Whether the organization has established explicit and entitywide policies on data transfer to third parties.

Whether customers have an opportunity to opt-out the right to be forgotten from organizational records and systems.

Which of these instances accurately describes the responsibilities for big data governance?

Management must ensure information storage systems are appropriately defined and processes to update critical data elements are clear.

External auditors must ensure that analytical models are periodically monitored and maintained.

The board must implement controls around data quality dimensions to ensure that they are effective.

Internal auditors must ensure the quality and security of data, with a heightened focus on the riskiest data elements.

According to IIA guidance, which of the following statements is true regarding penetration testing?

Testing should take place during heavy operational time periods to test system resilience.

Testing should not be announced to anyone within the organization to solicit a real-life response.

Testing should take place during heavy operational time periods to test system resilience.

Testing should be wide in scope and primarily address detective management controls for identifying potential attacks.

Testing should address the preventive controls and management's response.

According to The IIA's Three Lines Model, which of the following IT security activities is commonly shared by all three lines?

Classification of data and design of access privileges.

Assessments of third parties and suppliers.

Recruitment and retention of certified IT talent.

Classification of data and design of access privileges.

Creation and maintenance of secure network and device configuration.

Which of the following analytical techniques would an internal auditor use to verify that none of an organization's employees are receiving fraudulent invoice payments?

Calculate statistical parameters.

Which of the following would be the best method to collect information about employees' job satisfaction?

Face-to-face interviews with employees.

Online surveys sent randomly to employees.

Direct onsite observations of employees.

Town hall meetings with employees.

Face-to-face interviews with employees.

Which of the following is a distinguishing feature of managerial accounting, which is not applicable to financial accounting?

Managerial accounting involves decision making based on predetermined standards.

Managerial accounting uses double-entry accounting and cost data.

Managerial accounting uses general accepted accounting principles.

Managerial accounting involves decision making based on quantifiable economic events.

Managerial accounting involves decision making based on predetermined standards.

IIA IIA-CIA-Part3 Practice Test 8 - Free Online Exam Prep & Questions

A new clerk in the managerial accounting department applied the high-low method and computed the difference between the high and low levels of maintenance costs. Which type of maintenance costs did the clerk determine?

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IIA IIA-CIA-Part3 Practice Test 8

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IIA IIA-CIA-Part3 Practice Tests

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