Free IIA IIA-CIA-Part3 Practice Exam with Questions & Answers | Set: 13

Understanding Mobile Device Risks in an Organization:

When an organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems, it introduces significant compliance risks.

These risks include violations of regulatory requirements, industry standards, and internal security policies.

Compliance Risks in Smart Device Usage:

Unauthorized Access: External users may bypass security controls, leading to data breaches or regulatory non-compliance (e.g., GDPR, HIPAA, or PCI-DSS violations).

Lack of Encryption and Data Protection: If smart devices access sensitive information without proper security protocols, the organization may fail to comply with industry regulations.

Failure to Enforce Mobile Device Management (MDM): Without proper policy enforcement, organizations risk failing audits and facing penalties.

Why Other Options Are Incorrect:

B. Privacy:

Privacy concerns relate to handling personal data, but in this scenario, the focus is on third-party access risks, which fall under compliance.

C. Strategic:

Strategic risks relate to long-term business objectives, whereas compliance risks are more immediate and regulatory in nature.

D. Physical security:

Physical security deals with preventing unauthorized access to buildings or devices, not cybersecurity risks from external smart devices.

IIA’s Perspective on Compliance and IT Security:

IIA Standard 2110 – Governance emphasizes the need to evaluate IT security risks, including third-party access risks.

IIA GTAG (Global Technology Audit Guide) on IT Risks highlights compliance risks in Bring Your Own Device (BYOD) and third-party access policies.

ISO 27001 Information Security Standard mandates controls to manage external device access risks.

IIA References:

IIA Standard 2110 – Governance and IT Security

IIA GTAG – IT Risks and BYOD Policies

ISO 27001 Information Security Standard

NIST Cybersecurity Framework for Mobile Device Security

Thus, the correct and verified answer is A. Compliance.

Earned Value Analysis (EVA) is a project management technique that integrates scope, time, and cost data to measure project performance and progress objectively. EVA allows internal auditors to assess whether a software development project is on track by comparing planned work with completed work and actual costs.

Here’s why EVA is the most appropriate choice:

Evaluates Project Progress and Performance – EVA measures how much work has been completed against the planned schedule and budget, helping auditors analyze project efficiency.

Identifies Deviations – It highlights cost overruns or delays in task completion, which is critical for software development projects.

Uses Key Metrics – EVA includes essential indicators like:

Planned Value (PV) – The budgeted cost of work scheduled.

Earned Value (EV) – The value of actual work performed.

Actual Cost (AC) – The real cost incurred for work completed.

Schedule Variance (SV) and Cost Variance (CV) – Indicators of deviations from planned performance.

Supports Risk-Based Internal Audit Approach – The IIA emphasizes risk-based auditing, and EVA helps auditors assess risks related to project cost overruns, schedule slippage, and performance gaps.

A. A Balanced Scorecard – This measures overall organizational performance across perspectives (financial, customer, internal processes, and learning & growth), but it is not specifically designed for evaluating project task completion.

B. A Quality Audit – This focuses on compliance with quality standards and does not measure project task completion efficiency.

D. Trend Analysis – This evaluates patterns over time but does not provide a structured measurement of project progress in terms of cost, time, and completion percentage.

The IIA’s GTAG (Global Technology Audit Guide) on IT Project Management – Recommends using earned value analysis for project auditing.

IIA’s International Professional Practices Framework (IPPF) – Performance Standard 2120 (Risk Management) – Emphasizes the need for internal auditors to evaluate the effectiveness of project risk management, which EVA supports.

COSO’s Enterprise Risk Management (ERM) Framework – Encourages structured performance measurement techniques like EVA to monitor projects.

Why Not the Other Options?IIA References:Thus, Earned Value Analysis (EVA) is the correct answer because it provides a precise, quantitative way to measure project performance. ✅

When performing data analytics, the process typically follows a structured approach. Once the internal auditor has determined the expected value from the review, the next logical step is to obtain the data. Without acquiring the necessary datasets, further actions such as normalization, risk identification, and analysis cannot be effectively carried out.

(A) Incorrect – Normalize the data.

Normalization is a preprocessing step that occurs after data has been obtained.

Before normalizing, the auditor must first access and collect relevant data sources.

(B) Correct – Obtain the data.

Data acquisition is a critical step in data analytics.

The auditor must gather relevant and reliable data from internal and external sources before proceeding with further steps such as cleansing, normalization, and analysis.

(C) Incorrect – Identify the risks.

Risk identification is an essential part of the audit process but typically comes after obtaining and reviewing data patterns.

Without data, identifying risks would be speculative rather than evidence-based.

(D) Incorrect – Analyze the data.

Data analysis comes after obtaining, cleaning, and structuring the data.

Jumping straight to analysis without ensuring data quality would lead to inaccurate conclusions.

IIA’s GTAG (Global Technology Audit Guide) – Data Analytics

Recommends obtaining data as the initial step in data-driven audits.

IIA’s Global Internal Audit Standards – Use of Data Analytics in Auditing

Stresses the importance of data acquisition before proceeding with normalization and analysis.

COSO’s ERM Framework – Data-Driven Decision Making

Highlights the importance of securing data for risk identification and mitigation.

Analysis of Answer Choices:IIA References and Internal Auditing Standards:

A transformational leader focuses on inspiring and motivating employees to exceed expectations, emphasizing vision, innovation, and long-term goals rather than just rule enforcement or performance monitoring.

(A) The leader searches for deviations from the rules and standards and intervenes when deviations exist.

Incorrect: This describes a transactional leader, who focuses on correcting errors and enforcing rules rather than inspiring employees.

(B) The leader intervenes only when performance standards are not met.

Incorrect: This describes a passive transactional leader, who waits for issues before taking action.

(C) The leader intervenes to communicate high expectations. (Correct Answer)

Transformational leaders set high expectations, inspire employees to achieve them, and foster a culture of continuous improvement.

IIA Standard 2110 – Governance highlights the importance of leadership in driving organizational performance.

Transformational leadership aligns with COSO’s principles of strong governance and strategic vision.

(D) The leader does not intervene to promote problem-solving.

Incorrect: A transformational leader actively promotes problem-solving by encouraging innovation and continuous improvement.

IIA Standard 2110 – Governance: Recognizes leadership's role in fostering a strong ethical and performance-driven culture.

COSO ERM – Governance and Culture: Highlights leadership’s role in shaping strategic direction.

Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (C) because a transformational leader inspires employees by setting high expectations and motivating them to achieve organizational goals.