Free IIA IIA-CIA-Part3-3P Practice Exam with Questions & Answers | Set: 11

The most important reason to use risk assessment in audit planning is to:

Which of the following best describes an objective for an audit of an environmental management system?

According to the Standards, which of the following is based on the assertion that the quality of an organization's risk management process should improve with time?

Which of the following is a characteristic of just-in-time inventory management systems?

Which of the following are likely indicators of ineffective change management?

1) IT management is unable to predict how a change will impact interdependent systems or business processes.

2) There have been significant increases in trouble calls or in support hours logged by programmers.

3) There is a lack of turnover in the systems support and business analyst development groups.

4) Emergency changes that bypass the normal control process frequently are deemed necessary.

A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

An organization facing rapid growth decides to employ a third party service provider to manage its customer relationship management function. Which of the following is true regarding the supporting application software used by that provider compared to an in-house developed system?

1) Updating documentation is always a priority.

2) System availability is usually more reliable.

3) Data security risks are lower.

4) Overall system costs are lower.

An organization needs to borrow a large amount of cash to fund its expansion plan. Which of the following annual interest rates is least expensive?

In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?

Multinational organizations generally spend more time and effort to identify and evaluate: