Free IIA IIA-CIA-Part3 Practice Questions 2026 - Page 16

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.

In an organization that produces chocolate, the leadership team decides that the organization will open a milk production facility for its milk chocolate. Which of the following strategies have the organization chosen?

A. Vertical integration.

B. Unrelated diversification

C. Differentiation

D. Focus

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

Which of the following inventory costing methods requires the organization to account for the actual cost paid for the unit being sold?

A. Last-in-first-Out (LIFO}.

B. Average cost.

C. First-in-first-out (FIFO).

D. Specific identification

An organization produces products X and Y. The materials used for the production of both products are limited to 500 Kilograms



(kg ) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows in order to maximize profit, how much of product Y should the organization produce each month?
$10 $13
2 kg
70 units
6 kg
120 units

A. 50 units

B. 60 units

C. 70 units

D. 1:20 units

Which of the following capital budgeting techniques considers the expected total net cash flows from investment?

A. Cash payback

B. Annual rate of return

C. Incremental analysis

D. Net present value

Which of the following networks is suitable for an organization that has operations In multiple cities and countries?

A. Wide area network.

B. Local area network

C. Metropolitan area network

D. Storage area network

The internal audit activity has identified accounting errors that resulted in the organization overstating its net income for the fiscal year. Which of the following is the most likely cause of this overstatement?

A. Beginning inventory was overstated for the year.

B. Cost of goods sold was understated for the year.

C. Ending inventory was understated for the year.

D. Cost of goods sold was overstated for the year.

An organization contracted a third-party service provider to plan, design, and build a new facility. Senior management would like to transfer all of the risk to the builder. Which type of procurement contract would the organization use?

A. Cost-plus contract.

B. Turnkey contract.

C. Service contract.

D. Solutions contract.