[Oct-2025] IIA IIA-CIA-Part3 DUMPS WITH REAL EXAM QUESTIONS
2025 New TorrentExam IIA-CIA-Part3 PDF Recently Updated Questions
NEW QUESTION # 252
Management of a bookkeeping company observed that the average time spent to perform identical tasks using a new software package decreases as the number of tasks performed increases. The following information on the use of the new software was collected.
If this learning effect continues, what is the average time to perform each of the first eight tasks?
- A. 6.56 minutes.
- B. 7.29 minutes.
- C. 5.90 minutes.
- D. 8.1 minutes.
Answer: B
Explanation:
Learning curves reflect the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. This technique is applicable only to the early stages of production or to any new task. One common assumption is that the cumulative average time per unit is reduced by a fixed percentage each time cumulative production is doubled. Based on the given data, this company has a 90% learning curve (90% x 10 minutes = 9 minutes, and 90% x 9 minutes =
8.1 minutes). Accordingly, the cumulative average time to perform eight tasks is 7.29 minutes (90% x 8.1 minutes).
NEW QUESTION # 253
Which of the following is an example of a key systems development control typically found in the in-house development of an application system?
- A. A record is maintained to track the process of data from input, to output, to storage.
- B. Business users' requirements are documented, and their achievement is monitored.
- C. Logical access controls monitor application usage and generate audit trails.
- D. The development process is designed to prevent, detect, and correct errors that may occur.
Answer: A
NEW QUESTION # 254
Control objectives regarding effectiveness and efficiency, reliability, and compliance are the basis of which control framework?
- A. COBIT
- B. GTAG
- C. eSAC
- D. COSO
Answer: D
Explanation:
Probably the most well-known control framework in the U.S. is Infernal Control Integrated Framework, published in 1992 by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The document is commonly referred to as the COSO Framework." The COSO Framework defines internal control as A process, effected by an organization's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
Effectiveness and efficiency of operations
Reliability of financial reporting
Compliance with applicable laws and regulations
NEW QUESTION # 255
The following information relates to the activity of the defined postemployment benefit plan of Twain Publishers, Ltd.
Twain's expense recognized in the income statement is
- A. US $120,000
- B. US $135,000
- C. US $145,000
- D. US $140,000
Answer: C
Explanation:
Components of the expense are current service cost, interest cost, the expected return on plan assets, service cost recognition in full of vested amounts and amortization of nonvested amounts), and amortization of actuarial loss. Current service cost interest cost the amortization of actuarial loss, and the past service cost increase the expense The expected return on plan assets decreases the expense.
NEW QUESTION # 256
According to IIA guidance, which of the following are typical physical and environmental IT controls?
- A. Locating servers in locked rooms with restricted admission.
- B. Ensuring a tightly controlled process for applying all changes and patches to software, systems, network components, and data.
- C. Applying encryption where confidentiality is a stated requirement.
- D. Allocating and controlling access rights according to the organization's stated policy.
Answer: A
Explanation:
Comprehensive and Detailed In-Depth Explanation:
Physical and environmental IT controls focus on securing IT infrastructure against unauthorized access and environmental hazards. Locating servers in locked rooms with restricted admission protects hardware from theft, tampering, and environmental risks.
Option B (Applying encryption) - A logical security control, not a physical one.
Option C (Access rights allocation) - A logical control related to identity management.
Option D (Software patch control) - Part of IT governance and system maintenance, not physical security.
Since physical access control is a critical component of IT security, Option A is correct.
Reference: IIA IT Security - Physical and Environmental Controls
NEW QUESTION # 257
Which of the following methods is most closely associated to year over year trends?
- A. Common-size analysis
- B. Vertical analysis
- C. Ratio analysis
- D. Horizontal analysis
Answer: D
NEW QUESTION # 258
During a review of payments to supplier invoices, the internal auditor identified that the IT process allows invoice processing staff to ignore the auto-generated alert triggered when the invoice amount is different from the purchase order value. The manager explained that staff must be able to bypass the alert because of small differences in transport charges. Which of the following would be the most appropriate internal audit recommendation?
- A. The manager should raise a purchase order amendment each time the amounts differ, and the supplier should be asked to quote the amended order number in the invoice
- B. The alert is a control that should never be ignored, and suppliers should be advised that invoices will not be paid unless the invoice is equal to or less than purchase order value
- C. No additional controls are needed, as it is appropriate for a process to allow staff to exercise discretion when processing invoices
- D. The manager should establish a monetary limit on the amount of difference that will be tolerated, where the IT process will allow the staff to ignore the alert
Answer: D
Explanation:
A tolerance threshold is a recognized control that allows for efficiency while preventing abuse. By setting a monetary limit, the process permits legitimate small variances (e.g., transport costs) while ensuring significant discrepancies are flagged and cannot be bypassed.
Option A is overly rigid and impractical. Option B is administratively burdensome. Option D lacks control and exposes the process to risk.
Reference:
IIA Standards - Standard 2130: Control.
NEW QUESTION # 259
Which of the following techniques would best detect an inventory fraud scheme?
- A. Analyze differences discovered during duplicate payment testing
- B. Analyze stratification of inventory adjustments by warehouse location.
- C. Analyze Invoice payments just under individual authorization limits.
- D. Analyze inventory invoice amounts and compare with approved contract amounts.
Answer: B
Explanation:
Detecting an inventory fraud scheme requires analyzing patterns of inventory adjustments, particularly across different locations. Fraudulent activities often involve unauthorized write-offs, stock transfers, or misstatements of inventory levels.
* (A) Analyze invoice payments just under individual authorization limits.
* Incorrect: This technique is useful for detecting procurement fraud or invoice splitting, but not directly related to inventory fraud.
* (B) Analyze stratification of inventory adjustments by warehouse location. (Correct Answer)
* Fraudulent inventory write-offs often occur in specific warehouses or locations where controls are weak.
* Stratifying inventory adjustments helps identify abnormal patterns, such as excessive losses in one location.
* IIA Standard 2120 (Risk Management) recommends data analytics and trend analysis to detect anomalies.
* COSO ERM - Control Activities emphasizes monitoring and review of inventory adjustments to prevent fraud.
* (C) Analyze inventory invoice amounts and compare with approved contract amounts.
* Incorrect: This technique is effective for detecting overbilling or procurement fraud, but not inventory fraud, which involves physical stock manipulation.
* (D) Analyze differences discovered during duplicate payment testing.
* Incorrect: Duplicate payment testing helps uncover billing fraud, not inventory fraud.
* IIA Standard 2120 - Risk Management: Encourages fraud detection through trend analysis and data monitoring.
* IIA Practice Guide - Auditing Inventory Management: Suggests stratification of inventory adjustments to identify fraud.
* COSO ERM - Control Activities: Recommends monitoring inventory transactions to prevent fraud.
Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (B) because analyzing stratification of inventory adjustments by warehouse location helps detect irregular patterns indicative of fraud.
NEW QUESTION # 260
An entity has accounts payable of US $5 million with terms of 2% discount within 15 days, net 30 days 2115 net 30 It can borrow funds from a bank at an annual rate of 12%, or it can wait until the 30th day when it will receive revenues to cover the payment If it borrows funds on the last day of the discount period in order to obtain the discount, its total cost will be:
- A. US $75,500 less
- B. US $100,000 less
- C. US $24,500 more
- D. US $51,000 less
Answer: A
Explanation:
The interest cost of borrowing US $4,900,000 $5,000,000 98%) to take advantage of the discount is US $24,500 [$4,900,000 x 12% 15 - 360)], and the total cost will be US $4,924,500. The total cost if the discount is not taken will be 5,000,000, a difference of US $75,500.
NEW QUESTION # 261
Which of the following performance measures includes both profits and investment base?
- A. A flexible budget
- B. Residual income
- C. Variance analysis.
- D. A contribution margin income statement by segment.
Answer: C
NEW QUESTION # 262
Systems development audit engagements include reviews at various points to ensure that development is properly controlled and managed. The reviews should include all of the following except:
- A. Determining if system, user, and operations documentation conforms to formal standards.
- B. Verifying the use of controls and quality assurance techniques for program development, conversion, and testing.
- C. Conducting a technical feasibility study on the available hardware. software, and technical resources
- D. Examining the level of user involvement at each stage of implementation.
Answer: C
Explanation:
The technical feasibility study is conducted by IT professionals, not internal auditors.
NEW QUESTION # 263
Which of the following represents an entity's average gross receivables balance?
I. Days' sales in receivables x accounts receivable turnover.
II. Average daily sales x average collection period.
III.
Net sales/average gross receivables.
- A. I only.
- B. I and II only.
- C. II and III only.
- D. II only.
Answer: D
Explanation:
An entity's average gross receivables balance can be calculated by multiplying average daily sales by the average collection period days' sales outstanding). Alternatively, annual credit sales can be divided by the accounts-receivable turnover net credit sales/average accounts receivable) to obtain the average balance in receivables.
NEW QUESTION # 264
Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?
- A. Attribute theory.
- B. Contingency theory
- C. Path goal model
- D. Life cycle model
Answer: B
NEW QUESTION # 265
Regulatory agencies usually do not have power to:
- A. Impose agency taxes on private industry.
- B. Conduct hearings and decide whether violations have occurred.
- C. Issue rules and regulations.
- D. Investigate violations of statutes and rules.
Answer: A
Explanation:
A regulatory agency may regulate some aspect of all industries or may regulate a specific industry in accordance with power delegated by the enabling legislation. Agency functions include executive, adjudicatory, and rule-making activities. Such agencies, however, may not impose taxes.
NEW QUESTION # 266
A large hospital has an existing contract with a vendor in another country to provide software support and maintenance of the hospital's patient records information system. From the hospital management's perspective, which of the following controls would be most effective to address privacy risks related to this outsourcing arrangement^
- A. Include a "right to audit" clause in the contract and impose detailed security obligations on the outsourced vendor
- B. Implement mandatory privacy training for management to help with identifying privacy risks when outsourcing services
- C. Conduct periodic reviews of the privacy policy to ensure that the existing policy meets current legislation requirements in both regions.
- D. Develop an incident monitoring and response plan to track breaches from internal and external sources
Answer: C
NEW QUESTION # 267
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 orders placed or received.
- B. Exception reports and procedures.
- C. Duplication of payments.
- D. Denial of service attacks.
Answer: D
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.
NEW QUESTION # 268
What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for the coming year?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup casts. Thus, plugging the data into the EOQ formula results in the following:
Thus, if each lot consists of 1,000 units, five production runs per year are needed to meet the 5,000-unit demand. At this level, setup costs will total US $5,000 5 x $1,000). Carrying costs will also equal US $5,000 10 per unit carrying cost average inventory of 500 units).
Accordingly, total costs are minimized at US $10,000. Jed Ryerson Computer Furniture, Inc. RCF) manufactures a line of office computer chairs. The annual demand for the chairs is estimated to be 5,000 units. The annual cost tic. hold one unit in inventory is US $10 per year, and the cost to initiate a production run is US $1,000. There are no computer chairs on hand, and RCF has scheduled four equal production runs of computer chairs for the coming year, the first of which is to be run immediately. RCF has 250 business days per year, sales occur uniformly throughout the year, and production start-up is within one day. RCF is considering using the following formula for determining the economic order quantity EOQ):
If: A = cast to initiate a production run per purchase order D = annual unit demand K = cost of carrying one unit per year
NEW QUESTION # 269
With regard to project management when of the following statements about prefect crashing is true?
- A. It involves a revaluation of protect requirements and/or scope.
- B. It is an optimization technique where activities are performed in parallel rather than sequentially
- C. It is a compression technique in which resources are added to the protect
- D. It leads to an increase in risk and often results in rework
Answer: C
NEW QUESTION # 270
In the standard regression equation y- a + bx, how is the letter ￡> best described?
- A. Independent variable.
- B. Y intercept.
- C. Slope of the regression line.
- D. Dependent variable.
Answer: C
Explanation:
In the standard regression equation, b is the slope of the regression line.
NEW QUESTION # 271
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