Free IIA IIA-CIA-Part3-3P Practice Questions 2026 - Page 15

Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

A. The internal auditor may cite the use of other standards during audit communications.

B. If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.

C. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.

D. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.

According to Porter, which of the following is associated with fragmented industries?

A. Weak entrance barriers.

B. Significant scale economies.

C. Steep experience curve.

D. Strong negotiation power with suppliers.

An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?

A. Avoidance.

B. Reduction.

C. Elimination.

D. Sharing.

When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?

A. Review and acquire the external audit service.

B. Assess the appraisal and actuarial services.

C. Determine the selection criteria.

D. Identify regulatory requirements to be considered.

For an engineering department with a total quality management program, important elements of quality management include all of the following except:

A. Basing performance evaluations on the number of projects completed.

B. Comparing results with those of other engineering departments.

C. Creating a quality council within the engineering department.

D. Conducting post-project surveys on performance.

Which of the following is not a method for implementing a new application system?

A. Direct cutover.

B. Parallel.

C. Pilot.

D. Test.

Where complex problems need to be addressed, which of the following communication networks would be most appropriate?

A. Chain.

B. All-channel.

C. Circle.

D. Wheel.

In mergers and acquisitions, which of the following is an example of a horizontal combination?

A. Dairy manufacturing company taking over a large dairy farm.

B. A movie producer acquires movie theaters.

C. A petroleum processing company acquires an agro-processing firm.

D. A baker taking over a competitor.

According to IIA guidance, which of the following is a typical risk associated with the tender process and contracting stage of an organization's IT outsourcing life cycle?

A. The process is not sustained and is not optimized as planned.

B. There is a lack of alignment to organizational strategies.

C. The operational quality is less than projected.

D. There is increased potential for loss of assets.

Which of the following is true regarding an organization's relationship with external stakeholders?

A. Specific guidance must be followed when interacting with nongovernmental organizations.

B. Disclosure laws tend to be consistent from one jurisdiction to another.

C. There are several internationally recognized standards for dealing with financial donors.

D. Legal representation should be consulted before releasing internal audit information to other assurance