Free Practice IIA IIA-CIA-Part3 Exam Questions 2025

Stay ahead with 100% Free Business Knowledge for Internal Auditing IIA-CIA-Part3 Dumps Practice Questions

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Total 628 Questions | Updated On: Apr 21, 2025

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Question 1

When using the absorption costing approach, which of the following should be categorized as a period cost?

A : Selling expenses.

B : Fixed manufacturing overhead.

C : Direct labor.

D : Variable manufacturing overhead.

Answer: A

Question 2

An investor has acquired an organization that has a dominant position in a mature, slow-growth industry and consistently creates positive financial income. Which of the following terms would the investor most likely label this investment in her portfolio?

A : A star.

B : A cash cow.

C : A question mark.

D : A dog.

Answer: B

Question 3

Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

A : Logical access controls monitor application usage and generate audit trails.

B : The development process is designed to prevent, detect, and correct errors that may occur.

C : A record is maintained to track the process of data from input, to output, to storage.

D : Business users' requirements are documented, and their achievement is monitored.

Answer: C

Question 4

Which of the following principles are common to both hierarchical and open organizational structures?

1. Employees at all levels should be empowered to make decisions.

2. A supervisor's span of control should not exceed seven subordinates.

3. Responsibility should be accompanied by adequate authority.

4. A superior cannot delegate the ultimate responsibility for results.

A : 1 and 2

B : 1 and 4

C : 2 and 3

D : 3 and 4

Answer: D

Question 5

An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?

A : Interviewing the organization's employees.

B : Observing the organization's operations.

C : Reading the board's minutes.

D : Inspecting manuals and documents.

Answer: C

Page: 1 / 126

Total 628 Questions | Updated On: Apr 21, 2025

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