Free CIA Part 3 Knowledge Quiz by HOCK

Free CIA Part 3 Knowledge Quiz by HOCK

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Answer 30 questions covering key topics and receive instant feedback on your performance. Whether you are just starting studying or want to assess your knowledge, this quiz is a great way to estimate your exam readiness.

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It could be argued that the reason a company has succeeded in a very competitive market while its rivals have failed is because:

The strategies that the successful company pursues have a strong impact on its performance relative to its rivals.

The company has adopted a strategy with a low propensity for risk-taking.

The company has evolved into a multi-divisional organization.

The successful company has adopted more steps to its formal strategic planning process.

A sign of the successful implementation of a balanced scorecard is the presence of a cause-and-effect relationship. An example of this success for a hotel is meeting the target of

decreasing a customer's check-in time, which causes an increase in the number of implemented employee suggestions.

increasing employee training hours, which causes employee compensation to increase.

increasing profit, which causes an increase in employee job satisfaction ratings.

receiving more 5-star ratings from customers, which causes an increase in profit.

Products that are identified in the BCG Growth-Share Matrix as Cash Cows possess relatively

high market share in a low growth market.

low market share in a high growth market.

high market share in a high growth market.

low market share in a low growth market.

Cross-training of employees in various functions is an example of

Job enlargement.

Job rotation.

Job enrichment.

Job redesign.

The use of teams in total quality management is important because:

Well-managed teams can be highly creative and are able to address complex problems better than individuals can.

Teams are quicker to make decisions, thereby helping to reduce cycle time.

Employee motivation is higher for team members than for individual contributors.

The use of teams eliminates the need for supervision, thereby allowing a company to become leaner and more profitable.

Which of the following is most likely to be a disadvantage of decentralization?

Lower-level employees will develop less rapidly than in a centralized organization.

Top management will have less time available to devote to unique problems.

Lower-level managers may make conflicting decisions.

Lower-level managers may lose motivation.

An audit of managerial job descriptions should test whether a job description exists for every position in the organization. In addition, the auditor should examine job descriptions to confirm that they

Contain information on the compensation rate for incumbent employees.

List the minimum qualifications an applicant must possess to perform the job satisfactorily.

Summarize the duties incumbents will be held accountable for performing.

Contain guidelines for the fair and orderly layoff and recall of employees.

Under which scenario would a business probably not outsource an activity?

A computer engineering company is thinking about outsourcing its research department.

An IT company is thinking about outsourcing its payroll.

A manufacturing company is thinking about outsourcing its human resource department.

A homebuilder is thinking about sub-contracting some of the specific tasks of building a house (plumbing, for example).

Which of the following is not a benefit of using data analytics in solving audit problems?

It helps reduce audit risk.

It improves the timeliness of the audit.

It increases audit opportunities.

It improves the auditor's judgment.

Stephen has been working with a new business intelligence system and has been able to get a better understanding of several complex issues that he had been struggling with. Which stage of the business intelligence process has Stephen reached?

Strategic decisions

Information

Insight

Knowledge

Which of the following is not part of the role of the internal auditor when evaluating the effective of physical controls and security?

Analyzing past incidents.

Evaluating "worse case" scenarios.

Reviewing industry-wide incident statistics.

Implementing controls to correct control gaps.

Which of the following would not be included in an auditor's evaluation of a company's authentication and authorization controls?

Sampling user accounts and the access rights on their accounts.

Verifying that users' passwords meet the company's strength requirements.

Examining access logs for failed login attempts.

Evaluating system access restrictions to data.

Which of the following statements regarding encryption is true?

A message encrypted with Company Q's public key can only be decrypted with Company Q's private key.

Secret key systems use two different keys, one for encryption and one for decryption.

It is impossible to intercept encrypted data sent over the Internet.

Encryption is a 100% guarantee that data being transmitted cannot be read by an unintended third party.

Which of the following is true with respect to cloud computing?

Applications of the cloud provider must be downloaded, installed, and then updated periodically, thereby leading to additional investment.

Users of cloud computing must rely on the cloud provider’s data access controls.

Users of cloud computing can easily change from one cloud provider to another.

Cloud computing users have uninterrupted access to their data.

As the users' data are stored in the cloud, the users need to rely on the cloud provider’s data access controls for information security, privacy, and privacy concerns.

Which of the following is not a defense against cyberattack?

Social engineering.

Penetration testing.

Encryption.

A firewall.

Appropriate elements of a policy on email usage would include all of the following except:

Erasing all employee's email immediately upon employment termination.

Encrypting email messages.

Requiring users to change their password on a regular basis.

Directing that personnel do not send highly sensitive or confidential messages using email.

An internal auditor is evaluating a company's security policies. Which of the following would the auditor not expect to see in the security policies?

When encryption should be used to send sensitive information to third parties.

What customer data is considered to be private information.

Using the network file server to store documents that require collaboration.

Where mobile phones and devices with Internet capabilities may not be used.

Cyberattacks are usually intended to access, change, or destroy data, interrupt normal business operations, or they may involve extortion. A type of cyberattack that involves sending more data than expected to a computer system, causing the system to crash is

a buffer overflow attack.

a Denial of Service (DOS) attack.

a Distributed Denial of Service (DDOS) attack.

malware.

A systems analyst is responsible for

The development of information systems that use systems technology to satisfy user information requirements in an efficient manner.

Programming internal controls into the computerized accounting system.

Assuring the integrity and efficiency of the operating system.

Supervising the programmers in a data processing area.

A database management system can best be defined as a(n)

Management system that controls disconnected master files.

Very large database that is used for analysis and not transactional processing.

Conceptual level schema that maps the relationships between all data elements.

Program that manages a set of interrelated, centrally coordinated data files.

Which of the following is not true of an Enterprise Resource Planning system?

It utilizes a decentralized database.

It features integration.

Extension is available to customers, suppliers, and other business partners.

Business process reengineering is usually required in order to use it.

Change control typically includes procedures for separate libraries for production programs and for test versions of programs. The reason for this practice is to

Promote efficiency of system development.

Segregate incompatible duties.

Facilitate user input on proposed changes.

Permit unrestricted access to programs.

The most critical aspect of separation of duties within information systems (IS) is between

Project leaders and programmers.

Programmers and computer operators.

Systems analysts and users.

Programmers and systems analysts.

Which one of the following is not considered a typical risk associated with outsourcing (the practice of hiring an outside company to handle all or part of the data processing)?

Inflexibility.

Loss of control.

Loss of confidentiality.

Less availability of expertise.

Under variable (direct) costing, fixed manufacturing overhead costs are classified as

Administrative costs.

Selling costs.

Period costs.

Inventoriable costs.

In a just-in-time-inventory (JIT) system, which statement is false:

JIT combines purchasing, production and inventory control into one function.

The main idea in a JIT system is that the company does not produce anything until the next process requires it.

JIT is a pull system.

Because JIT is a push system, production is not driven by the expected demand for the product.

The internal rate of return (IRR) is the

rate of interest for which the net present value is equal to zero.

rate of interest for which the net present value is greater than 1.0.

rate of return generated from the operational cash flows.

hurdle rate.

A carpet manufacturer maintains a retail division consisting of stores stocking its brand and other brands, and a manufacturing division that makes carpets and pads. An outside market exists for carpet padding material in which all padding produced can be sold. The proper transfer price for padding transferred from the manufacturing division to the retail division is

variable manufacturing division production cost.

variable manufacturing division production cost plus allocated fixed factory overhead.

variable manufacturing division production cost plus variable selling and administrative cost.

the market price at which the retail division could purchase padding.

Costs relevant to a make-or-buy decision include variable labor and variable materials as well as

unavoidable fixed costs.

depreciation.

avoidable fixed costs.

property taxes.

In a responsibility accounting system, managers are accountable for

variable costs but not for fixed costs.

product costs but not for period costs.

incremental costs.

costs over which they have significant influence.

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