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IIA-CIA-Part3 exam is intended for those individuals who have completed the first two parts of the CIA certification program. Candidates must have a strong understanding of the internal auditing profession and the principles of internal auditing. IIA-CIA-Part3 Exam is administered in a computer-based format and consists of 100 multiple-choice questions. Candidates have two and a half hours to complete the exam.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q18-Q23):

NEW QUESTION # 18
A decision not to participate in e-commerce should be carefully analyzed, documented, and approved by whom?

A. The audit committee.
B. The governing board
C. The chief executive officer
D. The chief audit executive.

Answer: B

Explanation:
The overall audit objective should be to ensure that all e-commerce processes have effective internal controls. Management of commerce initiatives should be documented in a strategic plan that is well developed and approved. If there is a decision not to participate in e-commerce, that decision should be carefully analyzed, documented, and approved by the governing board.

NEW QUESTION # 19
Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

A. Social engineering test.
B. Vulnerability test.
C. Physical control test.
D. Penetration test.

Answer: C

NEW QUESTION # 20
Which of the following are typical responsibilities for operational management within a risk
management program?
1.Implementing corrective actions to address process deficiencies.
2.Identifying shifts in the organization's risk management environment.
3.Providing guidance and training on risk management processes.
4.Assessing the impact of mitigation strategies and activities.

A. 2 and 3 only
B. 1 and 2 only
C. 1 and 4 only
D. 3 and 4 only

Answer: C

NEW QUESTION # 21
An objective of financial reporting is

A. Providing information useful to investors, creditors, donors, and other users for decision making.
B. Assessing the adequacy of internal control.
C. Evaluating management results compared with standards.
D. Providing information on compliance with established procedures.

Answer: A

Explanation:
The objectives of financial reporting are concerned with the underlying goals and purposes of accounting. They are to provide information that1) is useful to those making investment and credit decisions, assuming that those individuals have a reasonable understanding of business and economic activities:2) is helpful to current and potential investors and creditors and other users in assessing the amount timing, and uncertainty of future cash flows; and3) discloses economic resources claims to those resources, and the changes therein.

NEW QUESTION # 22
An organization selected a differentiation strategy to compete at the business level. Which of the following structures best fits this strategic choice?

A. Functional structure with cross-functional teams.
B. Functional structure.
C. Mechanistic structure.
D. Divisional structure.

Answer: D

NEW QUESTION # 23
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