Free IIA IIA-CIA-Part3 Practice Questions 2026 - Page 19

Which of the following best explains why an organization would enter into a capital lease contract?

A. To increase the ability to borrow additional funds from creditors

B. To reduce the organization's free cash flow from operations

C. To Improve the organization's free cash flow from operations

D. To acquire the asset at the end of the lease period at a price lower than the fair market value

Which of the following describes a mechanistic organizational structure?

A. Primary direction of communication tends to be lateral.

B. Definition of assigned tasks tends to be broad and general.

C. Type of knowledge required tends to be broad and professional.

D. Reliance on self-control tends to be low.

According to I1A guidance on IT. which of the following activities regarding information security Is most likely to be the responsibility of line management as opposed to executive management, internal auditors, or the board?

A. Review and monitor security controls.

B. Dedicate sufficient security resources.

C. Provide oversight to the security function.

D. Assess information control environments

An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

A. The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided.

B. Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.

C. Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.

D. Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.

According to 11A guidance on IT, which of the following spreadsheets is most likely to be considered a high-risk user-developed application?

A. A revenue calculation spreadsheet supported with price and volume reports from the production department.

B. An asset retirement calculation spreadsheet comprised of multiple formulas and assumptions.

C. An ad-hoc inventory listing spreadsheet comprising details of written-off inventory quantities.

D. An accounts receivable reconciliation spreadsheet used by the accounting manager to verify balances

Which of the following measures the operating success of a company for a given period of time?

A. Liquidity ratios.

B. Profitability ratios.

C. Solvency ratios.

D. Current ratios.

Which of these instances accurately describes the responsibilities for big data governance?

A. Management must ensure information storage systems are appropriately defined and processes to update critical data elements are clear.

B. External auditors must ensure that analytical models are periodically monitored and maintained.

C. The board must implement controls around data quality dimensions to ensure that they are effective.

D. Internal auditors must ensure the quality and security of data, with a heightened focus on the riskiest data elements.

Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables. Which of the following would be the best argument for using the direct write-off method?

A. It is useful when losses are considered insignificant.

B. It provides a better alignment with revenue.

C. It is the preferred method according to The IIA.

D. It states receivables at net realizable value on the balance sheet.

While auditing an organization's customer call center, an internal auditor notices that Key performance indicators show a positive trend, despite the fact that there have been increasing customer complaints over the same period. Which of the following audit recommendations would most likely correct the cause of this inconsistency?

A. Review the call center script used by customer service agents to interact with callers, and update the script if necessary.

B. Be-emphasize the importance of call center employees completing a certain number of calls per hour.

C. Retrain call center staff on area processes and common technical issues that they will likely be asked to resolve.

D. Increase the incentive for call center employees to complete calls quickly and raise the number of calls completed daily

Management is pondering the following question:
"How does our organization compete?"
This question pertains to which of the following levels of strategy?

A. Functional-level strategy

B. Corporate-level strategy.

C. Business-level strategy,

D. DepartmentsHevet strategy