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IIA IIA-CIA-Part3 PDF Question - IIA-CIA-Part3 Practice Test

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IIA-CIA-Part3 exam is a challenging exam that requires a significant amount of preparation. Candidates are encouraged to review the exam content outline and study materials provided by the IIA. They should also consider taking review courses or working with a study group. Successful candidates will receive the CIA certification, which is a globally recognized professional designation for internal auditors.

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Quiz Updated IIA-CIA-Part3 - Business Knowledge for Internal Auditing PDF Question

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IIA Business Knowledge for Internal Auditing Sample Questions (Q186-Q191):

NEW QUESTION # 186
If a lease agreement transfers substantially all of the risks and rewards of ownership to the lessee, the asset amount is recognized on the lessee's records as a(n) <List A} asset, and the lease is classified as a <List B} lease.

A. Option C
B. Option B
C. Option D
D. Option A

Answer: D

Explanation:
A lease agreement transfers the risks and rewards of ownership of the lessee it is treated as finance because the transaction is in essence an installment purchase. Accordingly, the lessee records a depreciable asset and a liability. Moreover, IAS 38. Intangible Assets, specifically does not apply to bases that are within the scope of IRS 17, Leases. A finance lease is therefore presented as an item of property, plant, and equipment, that is, as a tangible asset.

NEW QUESTION # 187
An organization uses the management-by-objectives method, whereby employee performance is based on defined goals. Which of the following statements is true regarding this approach?

A. It is more successful when goal-setting is performed not only by management, but by all team members, including lower-level staff
B. It is particularly helpful to management when the organization is facing rapid change
C. It is a more successful approach when adopted by mechanistic organizations
D. It is particularly successful in environments that are prone to having poor employer-employee relations

Answer: A

Explanation:
Reference: IIA Business Knowledge for Internal Auditing, Performance Management section.

NEW QUESTION # 188
A global business organization is selecting managers to post to various international (expatriate) assignments. In the screening process, which of the following traits would be required to make a manager a successful expatriate?
1. Superior technical competence.
2. Willingness to attempt to communicate in a foreign language.
3. Ability to empathize with other people.

A. 1 and 3 only
B. 1 and 2 only
C. 1, 2, and 3
D. 2 and 3 only

Answer: D

NEW QUESTION # 189
Unfortunately, the company has not revised its contingency plan since the time when its data processing was mostly centralized at headquarters. The existing plan is likely to be out of date because of:

A. Changes in equipment, data, and software.
B. Personnel turnover at regional centers.
C. Inadequate processing capability at headquarters.
D. Lack of arrangements for a backup site for headquarters.

Answer: A

Explanation:
When a company decentralizes its information processing, many changes in equipment, data, and software occur as a result of the different processing methods. Since the company has not revised its contingency plan since the time processing was centralized, the plan is most likely out of date as a result of the changes in equipment, data, and software.

NEW QUESTION # 190
Which of the following best describes a detective control designed to protect an organization from cyberthreats and attacks?

A. Monitoring for vulnerabilities based on industry intelligence.
B. Comprehensive service level agreements with vendors.
C. Firewall and other network perimeter protection tools.
D. A list of trustworthy, good traffic and a list of unauthorized, blocked traffic.

Answer: A

NEW QUESTION # 191
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