Exambible offers free demo for IIA-CIA-Part3 exam. "Certified Internal Auditor - Part 3, Business Analysis and Information Technology", also known as IIA-CIA-Part3 exam, is a IIA Certification. This set of posts, Passing the IIA IIA-CIA-Part3 exam, will help you answer those questions. The IIA-CIA-Part3 Questions & Answers covers all the knowledge points of the real exam. 100% real IIA IIA-CIA-Part3 exams and revised by experts!
Q286. In regression analysis, which of the following correlation coefficients represents the strongest relationship between the independent and dependent variables?
A. 1.03
B. -.02
C. -.89
D. .75
Answer: C
Explanation:
Because the range of values is between -1.0 and 1_0, -.89 suggests a very strong inverse relationship between the independent and dependent variables. A value of -1.0 signifies a perfect inverse relationship, and a value of 1.0 signifies a perfect direct relationship.
Q287. The following data on variables x and y was collected from June to October:
The correlation coefficient between variables x and is nearest to:
A. 1.00
B. -1.00
C. 0.50
D. 0.00
Answer: B
Explanation:
A correlation coefficient of -1.00 describes a perfect inverse correlation; that is, the observations fall exactly along a straight line and the value of one variable increases decreases) as the other decreases increases). In the example to the left, the equation of the straight line is:
Q288. Company F produces and sells two products. Product A costs US $10 per unit and Product B costs US $5 per unit. Product A is selling very well, but sales of Product B are low. In order to increase sales of Product B, Company F has begun setting a price of US $13 for one of each.
What is the pricing method?
A. Product-bundle pricing.
B. By-product pricing.
C. Value pricing.
D. Collusive pricing.
Answer: A
Explanation:
Product-bundle pricing entails selling combinations of products at a price lower than the combined prices of the individual items. This strategy promotes sales of items consumers might riot otherwise buy.
Q289. The airlines have been leaders in the use of technology. Customers can make reservations either with an airline or through a travel agency. In this situation, a travel agency is classified as which type of distribution channel?
A. An intermediary.
B. A jobber.
C. A distributor.
D. A facilitating agent.
Answer: A
Explanation:
Marketing intermediaries assist companies in promoting, selling, and distributing their goods and services to ultimate consumers. For example, travel agents access an airline's computerized reservation system and make reservations for their customers without ever taking title to the ticket.
Q290. All of the following are useful for forecasting the needed level of inventory except:
A. Knowledge of the behavior of business cycles.
B. Internal accounting allocations of costs to different segments of the company.
C. Information about seasonal variations in demand.
D. Econometric modeling.
Answer: B
Explanation:
Forecasts are the basis for business plans. Models are used in the forecasting process to make decisions that optimize future results. Internal accounting allocations of costs to different segments of the company are arbitrary assignments of already incurred costs that do not have anything to do with forecasting demand. An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
Q291. In an order-entry system in which manually-prepared source documents are entered online for immediate processing, which of the following is an example of an appropriate input-output control?
A. Password authorization procedure
B. Check-digit validation procedure.
C. Hash total verification.
D. Backup and recovery procedures.
Answer: B
Explanation:
Self-checking digits may be used to detect incorrect identification numbers. The digit is generated by applying an algorithm to the ID number. During the input process, the check digit is recomputed by applying the same algorithm to the code actually entered.
Q292. Which of the following is not a condition that the internal auditor should be alert for when testing for fraud in an e-commerce audit?
A. Denial of service attacks.
B. Duplication of payments.
C. Denial of orders placed or received.
D. Exception reports and procedures.
Answer: A
Explanation:
According to the outline of a possible e-commerce audit protocol for key areas given in
PA 2100-6, the internal auditor should be alert for the following conditions with respect to fraud:
.
Unauthorized movement of money e.g., transfers to jurisdictions where the recovery of funds would be difficult).
.
Duplication of payments.
.
Denial of orders placed or received, goods received, or payments made.
.
Exception reports and procedures and effectiveness of the follow-up.
.
Digital signatures: Are they used for all transactions? Who authorizes them? Who has access to them?
.
Protections against viruses and hacking activities history file, use of tools).
.
Access rights: Are they reviewed regularly? Are they promptly revised when staff members are changed? History of interception of transactions by unauthorized persons.
Q293. The duties properly assigned to an information security officer could include all of the following except:
A. Developing an information security policy for the organization.
B. Maintaining and updating the list of user passwords.
C. Commenting on security controls in new applications.
D. Monitoring and investigating unsuccessful access attempts.
Answer: B
Explanation:The information security officer should not know user passwords. They are normally
stored on a computer in encrypted format, and users change them directly.
Q294. In which of the following organizational structures does total quality management TOM) work best?
A. Hierarchal.
B. Teams of people from the same specialty.
C. Teams of people from different specialties.
D. Specialists working individually.
Answer: C
Explanation:
TOM advocates replacement of the traditional hierarchal structure with teams of people from different specialties. This change follows from TQM's emphasis on empowering employees and teamwork. Employees should have proper training, necessary information, and the best tools; be fully engaged in the decision process; and receive fair compensation. If such empowered employees are assembled in teams of individuals with the required skills, TOM theorists believe they will be more effective than people performing their tasks separately in a rigid structure.
Q295. Conformance is how well a product and its components meet applicable standards.
According to the robust quality concept,
A. A certain percentage of defective units is acceptable.
B. Units are acceptable if their characteristics lie within an acceptable range of values.
C. The goal is for all units to be within specifications.
D. Every unit should reach a target value.
Answer: D
Explanation:
Conformance is how well a product and its components meet applicable standards. The traditional view is that conforming products are those with characteristics that lie within an acceptable specified range of values that includes a target value. This view also regarded a certain percentage of defective nonconforming) units as acceptable. The traditional view was superseded by the zero-defects approach that sought to eliminate all nonconforming output.
An extension of this approach is the robust quality concept. Its goal is to reach the target value in every case. The reason is that hidden quality costs occur when output varies from the target even though the units are within specifications.
Q296. Which of the following correctly describes the introduction of a government tax credit on investments?
A. Corporate investments will have higher net present values, all else equal, than without the tax credit.
B. Tax credits on investments are designed to restrain inflation.
C. Tax credits on investments increase investment costs, and all else equal, reduce the level of corporate investment.
D. Tax credits on investments are taxes that are typically levied on individual projects rather than on groups of projects.
Answer: A
Explanation:
An investment tax credit is an incentive because it directly reduces future tax payments.
Thus, corporate investments will have higher net present values, all else equal, than without tax
credits.
Q297. The arrival times in a waiting-line (queuing) model follow which probability distribution?
A. Binomial.
B. Chi-square.
C. Poisson.
D. Exponential.
Answer: C
Explanation:
Queuing models assume that arrivals follow a Poisson process: The events (arrivals) are independent, any number of events must be possible in the interval of time, the probability of an event is proportional to the length of the interval, and the probability of more than one event is negligible if the interval is sufficiently small.
Q298. In the organization of the IT function, the most important separation of duties is:
A. Not allowing the data librarian to assist in data processing operations.
B. Assuring that those responsible for programming the system do not have access to data processing operations.
C. Having a separate information officer at the top level of the organization outside of the accounting function.
D. Using different programming personnel to maintain utility} programs from those who maintain the application programs.
Answer: B
Explanation:
Separation of duties is a general control that is vital in a computerized environment Some separation of duties common in non-computerized environments may not be feasible in a computer environment. However, certain tasks should not be combined. Systems analysts and programmers should be separate from computer operators. Both programmers and analysts may be able to modify programs, files, and controls and should therefore have no access to those programs nor to computer equipment Operators should not be assigned programming duties or responsibility for systems design and should have no opportunity to make changes in programs and systems.
Q299. Which of the following are critical risk and control issues that an internal auditor must address?
I Rapid technology changes
II Maintenance of transaction integrity
III. Website content review and approval
IV.
Changes to organizational structures
A.
I and II only.
B.
I and III only.
C.
II and III only
D.
I, II, Ill, and IV.
Answer: D
Explanation:
Some of the more critical risk and control issues to be addressed by the internal auditor are
.
General project management risks
.
Specific security threats, such as denial of service, physical attacks, viruses, identity theft, and unauthorized access or disclosure of data
.
Maintenance of transaction integrity under a complex network of links to legacy systems and data warehouses
.
Website content review and approval when there are frequent changes and sophisticated customer features and capabilities that offer around-the-clock service
.
Rapid technology changes
.
Legal issues, such as increasing regulations throughout the world to protect individual privacy, enforceability of contracts outside of the organization's country, and tax and accounting issues Changes to surrounding business processes and organizational structures
Q300. Which of the following statements about voice communications is true?
A. Modern voice recognition input devices have large vocabularies and short training periods.
B. A voice output device converts speech into digital data.
C. Cell phones and PCS services use the same frequency radio waves.
D. Pagers can alert users to the receipt of messages but cannot transmit text.
Answer: A
Explanation:
Voice recognition input devices provide an alternative to keyboard input. These systems compare the speaker's voice patterns with prerecorded patterns. Advanced systems now have large vocabularies and shorter training periods. They allow for dictation and are not limited to simple commands.