Business Knowledge for Internal Auditing Exam Dumps

IIA-CIA-Part3-3P Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

Exam Specification: IIA-CIA-Part3-3P Business Knowledge for Internal Auditing

Exam Name: IIA-CIA-Part3-3P Business Knowledge for Internal Auditing
Exam Code: IIA-CIA-Part3-3P
Exam Duration: 180 minutes
Passing Score: 600 out of 800
Exam Format: Multiple-choice
Exam Delivery: Proctored online or at a testing center

Course Outline:

1. Business Acumen and Global Business Environment
- Understanding the organization's business model
- Economic and industry analysis
- Global business trends and challenges

2. Organizational Structures and Governance
- Types of organizational structures
- Governance frameworks and best practices
- Board of directors and executive management roles

3. Risk Management
- Principles and concepts of risk management
- Enterprise risk management frameworks
- Risk assessment methodologies

4. Financial Management and Budgeting
- Financial statements analysis
- Budgeting and forecasting processes
- Key financial ratios and performance indicators

5. Operations Management
- Process mapping and improvement techniques
- Supply chain management
- Quality management principles

6. Project Management and IT Governance
- Project management methodologies and tools
- IT governance frameworks and controls
- Information security and data privacy

7. Regulatory and Legal Considerations
- Compliance frameworks and requirements
- Laws and regulations impacting internal auditing
- Ethical considerations and professional standards

Exam Objectives:

1. Demonstrate understanding of the organization's business model and its impact on internal auditing.
2. Analyze the global business environment and its implications for internal auditors.
3. Evaluate different organizational structures and their influence on internal auditing activities.
4. Assess governance frameworks and best practices to ensure effective oversight.
5. Apply risk management principles and techniques to identify and mitigate risks.
6. Interpret financial statements and analyze financial performance for effective auditing.
7. Understand operations management concepts and their relevance to internal auditing.
8. Apply project management methodologies and assess IT governance controls.
9. Identify and comply with relevant laws, regulations, and ethical considerations.
10. Demonstrate knowledge of professional standards and code of ethics in internal auditing.

Exam Syllabus:

Section 1: Business Acumen and Global Business Environment (10%)
- Organization's business model and value proposition
- Economic and industry analysis techniques
- Global business trends and their impact on internal auditing

Section 2: Organizational Structures and Governance (15%)
- Types of organizational structures and their implications
- Governance frameworks and their role in internal auditing
- Board of directors and executive management oversight

Section 3: Risk Management (20%)
- Risk management principles and concepts
- Enterprise risk management frameworks and methodologies
- Risk assessment techniques for internal auditors

Section 4: Financial Management and Budgeting (20%)
- Financial statements analysis and interpretation
- Budgeting and forecasting processes in organizations
- Key financial ratios and performance indicators for internal auditors

Section 5: Operations Management (15%)
- Process mapping and improvement methodologies
- Supply chain management and its impact on internal auditing
- Quality management principles for internal auditors

Section 6: Project Management and IT Governance (10%)
- Project management methodologies and tools
- IT governance frameworks and controls for internal auditors
- Information security and data privacy considerations

Section 7: Regulatory and Legal Considerations (10%)
- Compliance frameworks and requirements
- Laws and regulations relevant to internal auditing
- Ethical considerations and professional standards for internal auditors

Section 8: Professional Standards and Code of Ethics (10%)
- International Standards for the Professional Practice of Internal Auditing (Standards)
- Code of Ethics for internal auditors

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IIA-CIA-Part3-3P
Business Knowledge for Internal Auditing
http://killexams.com/pass4sure/exam-detail/IIA-CIA-Part3-3P
Question: 92
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.
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 4 only
D. 3 and 4 only
Answer: C
Question: 93
Which of the following budgets must be prepared first?
A. Cash budget.
B. Production budget.
C. Sales budget.
D. Selling and administrative expenses budget.
Answer: C
Question: 94
Which is the least effective form of risk management?
A. Systems-based preventive control.
B. People-based preventive control.
C. Systems-based detective control.
D. People-based detective control.
Answer: D
Question: 95
Which of the following statements accurately describes one of the characteristics that distinguishes a multinational
company from a domestic company?
A. A multinational company has stockholders in other countries.
B. A multinational company exports its products to other countries.
C. A multinational company operates outside of its country of origin.
D. A multinational company uses raw materials and components from more than one country.
Answer: C
Question: 96
A holding company set up a centralized group technology department, using a local area network with a mainframe
computer to process accounting information for all companies within the group. An internal auditor would expect to
find all of the following controls within the technology department except:
A. Adequate segregation of duties between data processing controls and file security controls.
B. Documented procedures for remote job entry and for local data file retention.
C. Emergency and disaster recovery procedures and maintenance agreements in place to ensure continuity of
operations.
D. Established procedures to prevent and detect unauthorized changes to data files.
Answer: B
Question: 97
During which phase of disaster recovery planning should an organization identify the business units, assets, and
systems that are critical to continuing an acceptable level of operations?
A. Scope and initiation phase.
B. Business impact analysis.
C. Plan development.
D. Testing.
Answer: B
Question: 98
An organization is considering the outsourcing of its business processes related to payroll and information technology
functions .
Which of the following is the most significant area of concern for management regarding this proposed agreement?
A. Ensuring that payments to the vendor are appropriate and timely for the services delivered.
B. Ensuring that the vendor has complete management control of the outsourced process.
C. Ensuring that there are means of monitoring the efficiency of the outsourced process.
D. Ensuring that there are means of monitoring the effectiveness of the outsourced process.
Answer: D
Question: 99
Which of the following is the best approach to overcome entry barriers into a new business?
A. Offer a standard product that is targeted in the recognized market.
B. Invest in commodity or commodity-like product businesses.
C. Enter into a slow-growing market.
D. Use an established distribution relationship.
Answer: D
Question: 100
In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?
A. It uses the same products in all countries.
B. It centralizes control with little decision-making authority given to the local level.
C. It is an effective strategy when large differences exist between countries.
D. It provides cost advantages, improves coordinated activities, and speeds product development.
Answer: C
Question: 101
According to the Standards, which of the following is based on the assertion that the quality of an organizations risk
management process should improve with time?
A. Process element.
B. Key principles.
C. Maturity model.
D. Assurance.
Answer: C
Question: 102
At what point during the systems development process should an internal auditor verify that the new applications
connectivity to the organizations other systems has been established correctly?
A. Prior to testing the new application.
B. During testing of the new application.
C. During implementation of the new application.
D. During maintenance of the new application.
Answer: A
Question: 103
In order to provide useful information for an organizations risk management decisions, which of the following factors
is least important to assess?
A. The underlying causes of the risk.
B. The impact of the risk on the organizations objectives.
C. The risk levels of current and future events.
D. The potential for eliminating risk factors.
Answer: D
Question: 104
Which of the following is the best reason for considering the acquisition of a nondomestic organization?
A. Relatively fast market entry.
B. Improved cash flow of the acquiring organization.
C. Increased diversity of corporate culture.
D. Opportunity to influence local government policy.
Answer: A
Question: 105
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and
B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:
A. $100
B. $200
C. $300
D. $500
Answer: A
Question: 106
Which of the following is useful for forecasting the required level of inventory?
1) Statistical modeling.
2) Information about seasonal variations in demand.
3) Knowledge of the behavior of different business cycles.
4) Pricing models linked to seasonal demand.
A. 1 and 2 only
B. 2 and 3 only
C. 1, 2, and 3 only
D. 1, 2, 3, and 4
Answer: C
Question: 107
An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the
terms of the service level agreement .
Which of the following approaches is most appropriate to address this concern?
A. The organization should review the skill requirements and ensure that the service provider is maintaining sufficient
expertise and retaining skilled resources.
B. The organization should proactively monitor the performance of the service provider, escalate concerns, and use
penalty clauses in the contract where necessary.
C. The organization should ensure that there is a clear management communication strategy and path for evaluating
and reporting on all outsourced services concerns.
D. The organization should work with the service provider to review the current agreement and expectations relating to
objectives, processes, and overall performance.
Answer: B
Question: 108
Which of the following statements is false regarding the internal audit approach when a set of standards other than The
IIAs Standards is applicable to a specific engagement?
A. The internal auditor may cite the use of other standards during audit communications.
B. If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIAs
Standards.
C. If there are inconsistencies between the other standards and The IIAs Standards, the internal auditor must use the
more restrictive standards.
D. If there are inconsistencies between the other standards and The IIAs Standards, the internal auditor must use the
less restrictive standards.
Answer: D
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put together for the CCST examination

  • The appropriate answer is D, A/D converter. A digital controller requires a digital signal as its input. A 4-20 mA transmitter outputs an analog signal. therefore, a device to convert an analog (A) signal to a digital (D) is required. This class of device is known as an A/D converter.

    An I/P transducer is used to convert an analog existing (I) sign to a pneumatic (P) signal, as for actuation of ultimate manage elements. A P/I transducer is used to convert a pneumatic sign (P) to an analog existing (I) sign, as for a pneumatic transmitter in a programmable common sense controller loop. A DP transmitter is a differential force transmitter, that may output a pneumatic, an analog, or a digital sign, counting on the mannequin of transmitter used.

    Reference: Goettsche, L.D. (Editor), renovation of contraptions and programs, 2d version, ISA, 2005.

  • The proper answer is C, "pattern conditioning gadget." solutions A and C are gadgets not commonly linked to extractive container analyzers. Capillary tubes are used for gathering small samples (water, for example) from a bigger container. There are particular capillary tubes that may also be used in the analyzer chamber of a fuel chromatograph, but they don't seem to be constructed from glass. easy-walled pipe is important for reducing friction losses in piping techniques.

    A sample probe calibration gadget is crucial to the ordinary function and maintenance of an extractive box analyzer. despite the fact, these techniques don't seem to be used to put together the pattern for analysis, but reasonably to supply a mechanism to verify and retain analyzer efficiency.

    A pattern conditioning device can include gadgets, akin to filters, demisters, move regulators, and heaters. pattern conditioning methods are used to carry the pattern to the top-quality manner circumstances for correct dimension in the analyzer itself. The sample conditioning gadget may also be a key preservation item in an analyzer device, due to the fact that each machine must be calibrated, cleaned, and so forth.

    Reference: Goettsche, L.D. (Editor), renovation of contraptions and methods, 2nd version, ISA, 2005.

  • The relevant reply is B, "equal to." in order for air to be discharged from the conclusion of a bubbler purge tube, the air force in the tube need to be equal to (or better than) the pressure exerted through the liquid head in the tank.

    because the tank degree is decreased, the liquid head power on the tip of the purge tube decreases, and more bubbles per unit of time can break out. The corresponding discount in force within the purge tube is proportional to the level within the tank. for this reason, the element at which the liquid head pressure and the purge tube pressure are equal is the maximum stage (URV = 100%) that the device will measure.

    Reference: Goettsche, L.D. (Editor), renovation of gadgets and techniques, second edition, ISA, 2005.

  • The suitable reply is A, "fifty one k ohms ± 5%."

    The four-color band coding is:color    value    MultiplierBlack    0    1Brown    1    10Red    2    100Orange    3    1000Yellow    4    10 KGreen    5    100KBlue    6    1 MViolet    7    10 MGray    8     White    9     Gold    ± 5%    0.1Silver    ± 10%    0.01

    So a resistor with 4 bands, green-brown-orange-gold, has a worth of: 5 1 x a thousand ± 5% or fifty one okΩ.

    Reference: Goettsche, L.D. (Editor), upkeep of instruments and programs, second version, ISA, 2005.

  • The relevant reply is D, collection and energized. To measure latest, you must connect both leads of the ammeter within the circuit in order that the current flows through the ammeter. In other phrases, the ammeter ought to develop into part of the circuit itself. The most effective approach to measure the current flowing via a simple circuit is to insert your ammeter into the circuit (in sequence) with the circuit energized.

    Reference: Goettsche, L.D. (Editor), preservation of contraptions and methods, 2nd version, ISA, 2005.

  • The relevant answer is A; it prevents the formation of a 2d temperature size junction.

    A thermocouple measurement junction is formed anywhere two multiple metals are joined. KX-class thermocouple extension wire is made from the equal metals as the k-class thermocouple (chromel and alumel). When extending the thermocouple leads with an extension wire lower back to the manage system input card, KX thermocouple extension wire must be used, and the chromel wire and the alumel wire ought to be joined to the wire of the equal metallic in the extension cable. If JX or one other classification of extension wire is used, another measurement junction is formed. for instance, if JX extension cable is used within the illustration during this problem, the element the place the iron and chromel wires are joined would form another thermocouple. this can negatively have an effect on the intended dimension signal. suitable installation of thermocouple extension wires additionally requires special terminal blocks to avoid further junctions from being formed.

    Reference: Goettsche, L.D. (Editor), protection of gadgets and systems, 2d edition, ISA, 2005.

  • The correct reply is B, "hydraulic actuation." although many pneumatic actuators can deliver a huge drive, they require either a huge diaphragm area (in the case of a diaphragm actuator) or a big cylinder (in the case of a rack and pinion actuator).

    Hydraulic actuators are driven by using a high-drive fluid (as much as 4,000 psig) that can be delivered to the actuator by means of a pump it truly is faraway from the actuator itself. Hydraulic cylinders can bring up to 25 instances extra drive than a pneumatic cylinder of the identical dimension.

    guide actuation is achieved by using turning a valve handle, and is restricted to the amount of drive that an operator can exert on the lever or hand wheel.

    electric actuation delivers high torques for rotary-style valves, however electric powered actuators are usually huge and heavy in comparison to hydraulic actuators.

    Reference: Goettsche, L.D. (Editor), preservation of contraptions and systems, 2nd edition, ISA, 2005.

  • The proper answer is D; they measure power by way of sensing the deflection of the diaphragm. for most drive applications, adjustments in power are detected by way of the trade in deflection of a measuring diaphragm.

    The deflection is transformed into an electrical signal (voltage) by using a piezoelectric or capacitance gadget. The small electrical current is transformed to a common signal (e.g., 4-20 mA or a digital signal) with the aid of a transmitter. therefore, reply B isn't correct.

    answer A is not appropriate, as a result of pressure sensors can measure very small pressure alterations (inches of water) and in some cases, millimeters of water.

    drive measurement instruments are not suffering from volume, due to the fact they are measuring force over a neighborhood most effective. Many power sensors are delicate to temperature (capillary tubes are stuffed with fluids that may expand with temperature). hence, reply C is not correct.

    Reference: Goettsche, L.D. (Editor), maintenance of gadgets and techniques, 2d version, ISA, 2005.

  • The appropriate answer is C, "accumulate advice concerning the difficulty." as soon as an issue is identified, information ought to be gathered and analyzed to assess a achievable set of potential actions and solutions.

    The logical analysis troubleshooting formulation includes (in order):1. identify and define the problem.2. collect guidance in regards to the issue.three. evaluate the information/data.4. suggest an answer or boost a test.5. put into effect the answer or habits the check.6. consider the results of the answer or check.7. If the issue is not resolved, reiterate until the problem is discovered and resolved.eight. If the problem is resolved: doc, shop/file, and send to the applicable department for follow up if required.

    Reference: Goettsche, L.D. (Editor), protection of instruments and systems, second version, ISA, 2005.

  • The correct reply is B, “vicinity, elevation, and tag quantity.” Instrument location plans are most often used to aid new plant installations and provides the installer counsel in regards to the genuine physical region of the installing of an instrument, the elevation of installing (at grade, on a platform, at what height on a manner line, and many others.), and the tag number of the instrument to be installed.

    Specification numbers (a part of solutions C and D) are usually indicated on instrument lists and instrument setting up details. Wiring plans (a part of answer A) are typically shown on conduit and wiring schedules or cabling diagrams. besides the fact that children these particulars are helpful in the setting up of a plant, they are not part of the instrument installing plans.

    Reference: Goettsche, L.D. (Editor), maintenance of gadgets and systems, 2nd version, ISA, 2005.


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