Free IIA IIA-CIA-Part3 Practice Questions 2026 - Page 20

Explanation

Systems software controls are controls designed to protect the operating system, system utilities, and other systems-level software that support applications and infrastructure. Intrusion testing, also called penetration testing, is a systems software control because it tests the security of systems software and infrastructure by simulating attacks to identify vulnerabilities in operating systems, network services, and system configurations. It helps ensure that systems software is properly secured against unauthorized access and exploitation, making it the correct answer among the options provided.

Why the other options are incorrect:

A. Restricting server room access to specific individuals
– Restricting physical access to the server room is a physical access control, not a systems software control. It protects the physical environment where systems software resides, but it does not control or secure the software itself.

B. Housing servers with sensitive software away from environmental hazards
– Housing servers away from environmental hazards, such as floods, fire, or excessive heat, is a physical and environmental control. It protects the physical infrastructure, not the systems software directly, so it is not a systems software control.

C. Ensuring that all user requirements are documented
– Documenting user requirements is a systems development or project management control related to requirements gathering and documentation. It is not a systems software control, which focuses on protecting and controlling systems-level software.

Reference:

IIA-CIA-Part3 content area on Information Technology — Specifically IT controls, including systems software controls, physical controls, and systems development controls.

Explanation

A cold site is a disaster recovery facility that provides basic infrastructure, such as physical space, power, HVAC, internet, and telecommunications connectivity, but does not include pre-installed servers or other infrastructure equipment. When a disaster occurs, the organization must procure, install, and configure the necessary hardware and software before operations can resume. This makes the cold site the least expensive recovery option but also the one with the longest recovery time. The description in the question, a remote site with space for basic services like internet and telecommunications but no servers or infrastructure equipment, exactly matches the definition of a cold site.

Why the other options are incorrect:

A. Frozen site
– A "frozen site" is not a standard recognized category of disaster recovery site in IIA guidance or standard IT terminology. It appears to be a distractor and does not describe the facility described in the question.

C. Warm site
– A warm site is a partially equipped recovery facility that includes some pre-installed hardware, software, and network infrastructure, but is not fully configured or ready for immediate operation. Because it has some equipment in place, it does not match the description of a site with no servers or infrastructure equipment.

D. Hot site
– A hot site is a fully operational, duplicate facility that is configured to the organization's exact needs and can be brought online almost immediately. It includes duplicate hardware, software, network infrastructure, and replicated data, so it clearly does not match the description of a site without servers or infrastructure equipment.

Reference:

IIA-CIA-Part3 content area on Business Continuity Management (BCM) and Disaster Recovery Planning — Specifically alternate site strategies, including hot, warm, and cold sites.

Explanation

Rooting is the practice of bypassing the administrative restrictions and security controls placed on a smart device by its manufacturer or by organizational policy in order to gain privileged (root) access to the device's operating system. When a device is rooted, the user can install unauthorized applications, modify system settings, disable built-in security features, and access protected system files. This directly circumvents administrative restrictions on smart devices and significantly increases data security risks because organizational controls such as encryption enforcement, mobile device management (MDM) policies, application whitelisting, and remote wipe capabilities can be weakened or disabled. Rooting therefore creates a significant risk to organizational data stored on or accessed by the device.

Why the other options are incorrect:

B. Eavesdropping
– Eavesdropping is a passive attack in which an unauthorized party intercepts communications or monitors data transmissions. It is a security threat, but it does not circumvent administrative restrictions on smart devices; it exploits unsecured communications instead.

C. Man in the middle
– A man-in-the-middle attack occurs when an attacker secretly intercepts and possibly alters communications between two parties. It is a network-based attack that compromises confidentiality and integrity, but it does not involve bypassing the administrative restrictions placed on a smart device.

D. Session hijacking
– Session hijacking is an attack in which an attacker takes over a valid user session, often by stealing session tokens or cookies, to gain unauthorized access to a system or application. It exploits session management weaknesses, not administrative restrictions on smart devices.

Reference:

IIA-CIA-Part3 content area on Information Technology — Specifically mobile device security, smart device risks, and controls over personally owned and organizational devices.

Explanation

When internal auditors use free software to analyze a third-party vendor's big data, the most significant concern is the security and confidentiality of the data being processed. Third-party vendor data is often sensitive, proprietary, or subject to contractual and regulatory requirements regarding confidentiality, privacy, and data protection. Free software may lack robust security features, may store or transmit data to external servers, may include undisclosed telemetry or data collection, and may not provide adequate controls to prevent unauthorized access, leakage, or loss of data. For internal auditors, ensuring that the big data entered into the software is protected from compromise or loss is a major concern because a data breach or loss could violate confidentiality obligations, damage the organization's relationship with the vendor, and create legal and regulatory exposure.

Why the other options are incorrect:

A. The ability to use the software with ease to perform the data analysis to meet the engagement objectives
– Ease of use is a practical consideration that affects efficiency and effectiveness, but it is not the major concern when dealing with sensitive third-party big data. Usability issues can be worked around; data security and confidentiality breaches cannot.

B. The ability to purchase upgraded features of the software that allow for more in-depth analysis of the big data
– The availability of upgraded features is a functionality and cost consideration, not a primary risk concern. While more advanced features may improve analysis, the overriding concern when handling third-party data is protecting it from compromise or loss.

D. The ability to download the software onto the appropriate computers for use in analyzing the big data
– The ability to download and install the software is a logistical and technical consideration. It is not the major concern relative to the security and confidentiality of the sensitive data being processed, which is the primary risk internal auditors must consider.

Reference:

IIA-CIA-Part3 content area on Information Technology — Specifically data security, confidentiality, third-party data handling, and the use of software tools in audit engagements.

Explanation

Social engineering is a cybersecurity risk in which an attacker manipulates people into divulging confidential information, granting access, or performing actions that compromise security, often by impersonating a trusted individual or authority figure. In this scenario, the attacker posed as a bank representative and convinced an employee to release financial information, which ultimately resulted in fraud. This is a classic example of social engineering because the attack exploited human trust rather than a technical vulnerability. The attacker used deception, impersonation, and psychological manipulation to obtain sensitive information from the employee.

Why the other options are incorrect:

A. Shoulder surfing
– Shoulder surfing is a form of visual eavesdropping in which an attacker observes a user's screen, keyboard, or documents to obtain sensitive information such as passwords or PINs. In this scenario, no direct observation occurred; the attacker used deception and impersonation over communication, which is characteristic of social engineering, not shoulder surfing.

B. Pharming
– Pharming is a cyberattack that redirects users to fraudulent websites without their knowledge, typically by manipulating DNS settings or exploiting browser vulnerabilities. In this scenario, there is no indication that the employee was redirected to a fake website; the attacker directly contacted the employee and manipulated them into releasing information, which is social engineering.

C. Phishing
– Phishing is a specific type of social engineering in which an attacker sends fraudulent communications, usually email, that appear to come from a trustworthy source to trick recipients into revealing sensitive information or clicking malicious links. While phishing is a form of social engineering, the scenario describes direct interaction and manipulation by an attacker posing as a bank representative, which is broader than phishing. Social engineering is the most accurate and comprehensive description of the risk.

Reference:

IIA-CIA-Part3 content area on Information Technology — Specifically cybersecurity risks, including social engineering, phishing, and impersonation tactics.

Explanation

According to IIA guidance on IT, a network is the component that controls the routing of data packets to link computers and enable them to communicate with each other. Networks use hardware and software components, such as routers, switches, and transmission protocols (e.g., TCP/IP), to direct data packets from a source computer to a destination computer across local or wide area connections. Routing is a core function of network infrastructure, ensuring that data reaches the correct destination. This makes networks the correct answer to the question of what controls the routing of data packets to link computers.

Why the other options are incorrect:

A. Operating system
– An operating system manages a computer's hardware and provides services for applications, and it includes networking capabilities. However, the operating system itself does not control the routing of data packets across a network; routing is performed by network devices and protocols, not by the operating system alone.

B. Control environment
– The control environment is a governance and internal control concept referring to the overall tone, culture, and structure that supports effective internal control (e.g., integrity, ethical values, management's philosophy). It is not an IT component and does not control the routing of data packets.

D. Application program code
– Application program code consists of the instructions and logic that make up software applications. While applications may use a network to communicate, application code does not control the routing of data packets; that is the function of the network infrastructure and its protocols.

Reference:

IIA-CIA-Part3 content area on Information Technology — Specifically IT infrastructure components, including networks, hardware, software, and databases.

Explanation

A hierarchical control structure is characterized by centralized authority, formal rules and procedures, close supervision, and decision-making concentrated at higher levels of management. In such structures, employees typically have less autonomy, limited participation in decision-making, and fewer opportunities to influence their work. This tends to reduce employees' sense of ownership, engagement, and identification with the organization, resulting in lower organizational commitment. Research in organizational behavior consistently shows that rigid, hierarchical control structures are associated with lower employee commitment and satisfaction compared to more flexible, participative structures.

Why the other options are incorrect:

A. Less use of policies and procedures
– A hierarchical control structure relies heavily on formal policies, rules, and procedures to direct and control employee behavior. The emphasis on formalization is a defining characteristic of hierarchical structures, so "less use of policies and procedures" is the opposite of what is typical.

C. Less emphasis on extrinsic rewards
– Hierarchical structures typically emphasize extrinsic rewards such as pay, bonuses, promotions, and status as mechanisms for motivating and controlling employees. Extrinsic rewards are used heavily in bureaucratic, hierarchical settings, so less emphasis on extrinsic rewards is not a characteristic of this structure.

D. Less employee turnover
– Hierarchical control structures are generally associated with higher, not lower, employee turnover. Lower autonomy, reduced participation, and diminished commitment tend to increase turnover. Lower turnover is more characteristic of flatter, more participative organizational structures that foster engagement and commitment.

Reference:

IIA-CIA-Part3 content area on Business Acumen / Organizational Behavior — Specifically organizational control structures, hierarchy, and employee motivation and commitment.

Explanation

Working capital is calculated as current assets minus current liabilities, and it measures an organization's short-term liquidity and ability to meet its near-term obligations. When an organization has a high amount of working capital compared to the industry average, it suggests that the organization is holding excessive current assets, such as inventory, accounts receivable, or idle cash, relative to its current liabilities. While some working capital is necessary and healthy, an unusually high amount can indicate inefficiency: cash and other resources may be tied up in items that are not generating financial value for the organization, such as slow-moving inventory, excessive cash balances earning little return, or receivables that are not being collected promptly. This represents an opportunity cost and can signal poor working capital management.

Why the other options are incorrect:

A. Settlement of short-term obligations may become difficult
– This would be true if the organization had a low or negative amount of working capital, not a high amount. High working capital generally indicates a strong ability to settle short-term obligations, not difficulty in doing so.

C. Collection policies of the organization are ineffective
– While ineffective collection policies could contribute to high working capital by inflating accounts receivable, this is only one possible cause and not the most likely general conclusion. A high working capital position overall more broadly suggests resources tied up in non-productive assets rather than specifically pointing to ineffective collections. Option B is the broader and more accurate statement.

D. The organization is efficient in using assets to generate revenue
– High working capital compared to the industry average is generally associated with inefficiency, not efficiency, in asset utilization. Efficient organizations tend to minimize excess working capital and deploy resources productively. Excessive working capital suggests idle or underutilized resources, which is the opposite of efficiency.

Reference:

IIA-CIA-Part3 content area on Financial Management — Specifically working capital management, liquidity analysis, and financial ratio analysis.

Explanation

Earnings management involves manipulating financial results through aggressive accounting choices, timing of revenues and expenses, or other means to achieve a desired earnings figure. When performance is linked to financial measures such as profitability, return on investment, stock price, or production quotas, managers have a strong incentive to manage earnings or manipulate operational metrics to hit targets because their compensation and evaluations depend on those numbers. In contrast, linking performance to nonfinancial measures such as customer satisfaction, employee training, quality, and operational efficiency reduces the incentive to engage in earnings management. These measures focus on long-term value creation and operational health rather than short-term financial outcomes, making it harder and less rewarding for managers to manipulate reported earnings to boost their performance evaluations. This makes nonfinancial performance measures an effective disincentive to earnings management.

Why the other options are incorrect:

A. Linking performance to profitability measures such as return on investment
– Tying performance to profitability measures directly incentivizes managers to manage earnings because their evaluations and rewards depend on reported financial results. If actual results fall short, managers may be motivated to manipulate earnings to meet targets. This encourages, rather than discourages, earnings management.

B. Linking performance to the stock price
– Tying performance to stock price creates strong pressure to meet or beat earnings expectations because stock prices react to reported earnings. This incentivizes managers to manage earnings to satisfy market expectations and support the stock price, so it does not disincentivize earnings management.

C. Linking performance to quotas such as units produced
– Tying performance to production quotas incentivizes managers to meet output targets, which can lead to manipulation of production metrics, inventory buildup, or other dysfunctional behaviors. It does not address earnings management and may even encourage manipulation of operational data, so it is not a disincentive.

Reference:

IIA-CIA-Part3 content area on Business Acumen / Performance Measurement and Financial Management — Specifically performance measures, incentives, and earnings management.

Explanation

Detective controls are designed to identify and discover cyberthreats, attacks, or security weaknesses after they occur or as they are developing, enabling the organization to respond in a timely manner. Monitoring for vulnerabilities based on industry intelligence is a detective control because it involves continuously gathering and analyzing information about emerging threats, vulnerabilities, and attack patterns from industry sources, and then monitoring the organization's systems to detect whether those threats or vulnerabilities are present or being exploited. This activity helps the organization identify potential security issues before they cause significant harm and supports timely response and remediation.

Why the other options are incorrect:

A. A list of trustworthy, good traffic and a list of unauthorized, blocked traffic
– This describes whitelists and blacklists, which are preventive controls used to allow or block traffic based on predefined rules. They are designed to stop unauthorized activity before it occurs, not to detect it after the fact, so this is not a detective control.

C. Comprehensive service level agreements with vendors
– Service level agreements (SLAs) are contractual documents that define expected service levels, including performance, availability, and security obligations. They are administrative and contractual controls, not detective controls designed to identify cyberthreats or attacks.

D. Firewall and other network perimeter protection tools
– Firewalls and perimeter protection tools are preventive controls. They are designed to block unauthorized traffic and prevent attacks from reaching the organization's network. While they may generate logs that support detection, their primary purpose is prevention, not detection.

Reference:

IIA-CIA-Part3 content area on Information Technology — Specifically cybersecurity controls, including the distinction between preventive, detective, and corrective controls.