Free IIA IIA-CIA-Part3 Exam Practice Questions & Explanations
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Which of the following best describes the benefit of an organization adopting a business continuity and disaster recovery plan for responding to natural disasters?
A business continuity and disaster recovery plan does not prevent natural disasters, predict when they will occur, or eliminate the threat. Its value is that it reduces the likelihood that such events will severely disrupt operating activities by preparing recovery strategies, alternate procedures, communication protocols, backup arrangements, and restoration priorities. Natural disasters may still occur, but an effective plan helps the organization continue critical services or recover them within acceptable timeframes. Option A is too absolute because economic impact may still occur. Option B is incorrect because continuity planning does not forecast disasters. Option D is also incorrect because threats cannot be eliminated. Internal audit should assess whether continuity and recovery plans align with business impact analysis, recovery time objectives, and recovery point objectives. Therefore, Option C is correct.
According to IIA guidance, which of the following links computers and enables them to -communicate with each other?
Understanding Computer Communication Systems:
Computers communicate with each other using network infrastructure, which allows data transfer, resource sharing, and remote access.
A network connects multiple devices, enabling them to exchange information, access shared resources, and collaborate efficiently.
Why Option D (Networks) Is Correct?
A computer network consists of hardware (routers, switches, and cables) and software (protocols like TCP/IP) that facilitate communication.
Networks can be local (LAN), wide-area (WAN), or cloud-based, providing the backbone for IT operations.
IIA GTAG 11 -- Developing the IT Audit Plan emphasizes auditing network security and communication controls.
Why Other Options Are Incorrect?
Option A (Application program code):
Application programs allow users to perform specific tasks but do not link computers for communication.
Option B (Database system):
A database stores and retrieves data, but it does not enable direct communication between computers.
Option C (Operating system):
The operating system manages a single computer's resources but does not connect multiple computers.
Networks are responsible for linking computers and enabling communication, making option D the correct choice.
IIA GTAG 11 highlights the importance of network infrastructure in IT auditing.
Final Justification:IIA Reference:
IIA GTAG 11 -- Developing the IT Audit Plan
ISO 27001 -- IT Network Security Management
NIST SP 800-53 -- Network Security Controls
According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:
Internal auditors may assess, evaluate, and provide assurance on risk management processes, but they should not determine and accept the level of risk for the organization. Risk acceptance is a management and board responsibility because they own organizational objectives and risk appetite. If internal audit accepts risk on management's behalf, objectivity is impaired and internal audit may assume a management role. Options A and B are appropriate because auditors should recognize that organizations use different risk management approaches and should seek assurance that risk management objectives are achieved. Option D is also acceptable because evaluating risk management processes differs from using risk analysis to prioritize audit engagements. Internal auditors provide assurance and advice but do not own risk decisions. Therefore, Option C is correct.
Which of the following principles s shared by both hierarchies and open organizational structures?
1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions.
2. A supervisor's span of control should not exceed seven subordinates.
3. Responsibility should be accompanied by adequate authority.
4. Employees at all levels should be empowered to make decisions.
Both hierarchies (traditional organizations with a clear chain of command) and open organizational structures (flatter, decentralized decision-making models) share certain fundamental management principles.
Let's analyze each statement:
A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions.
Correct. In both hierarchical and open structures, managers can delegate decision-making authority, but they remain accountable for the outcomes.
IIA Reference: Internal auditors assess governance structures to ensure that accountability remains with senior management, even when authority is delegated. (IIA Standard 2110: Governance)
A supervisor's span of control should not exceed seven subordinates.
Incorrect. While some management theories suggest an ideal span of control, there is no universal limit of seven subordinates. The optimal number depends on factors like task complexity and organizational structure.
Responsibility should be accompanied by adequate authority.
Correct. Employees must have the necessary authority to fulfill their responsibilities effectively, regardless of the organizational structure.
IIA Reference: The IIA's guidelines on effective governance and accountability emphasize the need for clear delegation of authority to ensure operational efficiency. (IIA Practice Guide: Organizational Governance)
Employees at all levels should be empowered to make decisions.
Incorrect. While this principle applies to open organizational structures, it does not align with traditional hierarchies, where decision-making authority is concentrated at higher levels.
Thus, the verified answer is A. 1 and 3 only.
A manager who is authorized to make purchases up to a certain dollar amount approves the set-up of a fictitious vendor and subsequently initiates purchase orders. Which of the following controls would best address this risk?
The risk is caused by incompatible duties: the same manager can approve vendor setup and initiate purchases. The best control is segregation of duties through separate vendor creation and approval teams. This prevents one person from creating a fictitious vendor and then generating purchase orders to that vendor without independent review. A code of conduct and conflict-of-interest declaration are useful ethical controls, but they are weaker because they depend on honesty and self-reporting. Vendor master file review is detective and may identify problems after improper vendors already exist. Internal audit should evaluate whether vendor creation, vendor approval, purchase authorization, receiving, invoice approval, and payment functions are properly separated. Therefore, Option A is correct.