Free IIA IIA-CIA-Part3-3P Practice Questions 2026 - Page 10

Multinational organizations generally spend more time and effort to identify and evaluate:

A. Internal strengths and weaknesses.

B. Break-even points.

C. External trends and events.

D. Internal risk factors.

A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:

A. Sort on product identification code and identify missing product identification codes.

B. Review store identification code and identify missing product identification codes.

C. Compare product identification codes for consecutive periods.

D. Compare product identification codes by store for consecutive periods.

The economic order quantity for inventory is higher for an organization that has:

A. Lower annual unit sales.

B. Higher fixed inventory ordering costs.

C. Higher annual carrying costs as a percentage of inventory value.

D. A higher purchase price per unit of inventory.

A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?

A. Evaluate the proposed external auditor fee.

B. Recommend criteria to be used in the selection process.

C. Develop appropriate performance metrics.

D. Monitor the work of the external auditors.

Which of the following strategies would most likely prevent an organization from adjusting to evolving industry market conditions?

A. Specializing in proven manufacturing techniques that have made the organization profitable in the past.

B. Substituting its own production technology with advanced techniques used by its competitors.

C. Forgoing profits over a period of time to gain market share from its competitors.

D. Using the same branding to sell its products through new sales channels to target new markets.

Preferred stock is less risky for investors than is common stock because:

A. Common stock pays dividends as a stated percentage of face value.

B. Common stock has priority over preferred stock with regard to earnings and assets.

C. Preferred dividends are usually cumulative.

D. Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.

An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:

A. Lack of awareness of the state of processing.

B. Increased cost and complexity of network traffic.

C. Interference of the mirrored data with the original source data.

D. Confusion about where customer data are stored.

Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

A. Political.

B. Financial.

C. Social.

D. Tariff.

Which is the least effective form of risk management?

A. Systems-based preventive control.

B. People-based preventive control.

C. Systems-based detective control.

D. People-based detective control.

Which of the following actions is most likely to gain support for process change?

A. Set clear objectives.

B. Engage the various communities of practice within the organization.

C. Demonstrate support from senior management.

D. Establish key competencies.