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

Which of the following statements is true regarding the term "flexible budgets" as it is used in accounting?

A. The term describes budgets that exclude fixed costs.

B. Flexible budgets exclude outcome projections, which are hard to determine, and instead rely on the most recent actual outcomes.

C. The term is a red flag for weak budgetary control activities.

D. Flexible budgets project data for different levels of activity.

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

B. Divisional structure

C. Divisional structure

D. Functional structure with cross-functional teams

According to lIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?

A. The business continuity management charter.

B. The business continuity risk assessment plan

C. The business Impact analysis plan

D. The business case for business continuity planning

A company records income from an investment in common stock when it does which of the following?

A. Purchases bonds

B. Receives interest

C. Receives dividends

D. Sells bonds

Which of the following is true regarding the use of remote wipe for smart devices?

A. It can restore default settings and lock encrypted data when necessary

B. It enables the erasure and reformatting of secure digital (SD) cards

C. It can delete data backed up to a desktop for complete protection if required

D. It can wipe data that is backed up via cloud computing

Which of the following statements is true regarding the management-by-objectives method?

A. Management by objectives is most helpful in organizations that have rapid changes

B. Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks

C. Management by objectives helps organizations to keep employees motivated.

D. Management by objectives helps organizations to distinguish clearly strategic goals from operational goals

Following an evaluation of an organization's IT controls, an internal auditor suggested improving the process where results are compared against the input. Which of the following IT controls would the Internal auditor recommend?

A. Output controls

B. Input controls

C. Processing controls

D. Integrity controls

An internal auditor observed that the organization's disaster recovery solution will make use of a cold site in a town several miles away. Which of the following is likely to be a characteristic of this disaster recover/ solution?

A. Data is synchronized in real time

B. Recovery time is expected to be less than one week

C. Servers are not available and need to be procured

D. Recovery resources end data restore processes have not been defined.

Which of the following is required in effective IT change management?

A. The sole responsibility for change management is assigned to an experienced and competent IT team

B. Change management follows a consistent process and is done in a controlled environment.

C. Internal audit participates in the implementation of change management throughout the organisation.

D. All changes to systems must be approved by the highest level of authority within an organization.

Based on lest results, an IT auditor concluded that the organization would suffer unacceptable loss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

A. Requested backup tapes were not returned from the offsite vendor In a timely manner.

B. Returned backup tapes from the offsite vendor contained empty spaces.

C. Critical systems have boon backed up more frequently than required.

D. Critical system backup tapes are taken off site less frequently than required