IIA-CIA-Part3 Practice Test

IIA-CIA-Part3 Practice Test practice questions, page 21 of 26, with answer review and explanations.

Question 101

The economic order quantity can be calculated using the following formula: Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

  1. Decrease by about 17 percent.
  2. Decrease by about 7 percent.
  3. Increase by about 7 percent.
  4. Increase by about 17 percent.

Question 102

Which of the following statements best describes the frameworks set forth by the International Standards Organization?

  1. Globally accepted standards for industries and processes.
  2. Bridging the gaps among control requirements, technical issues, and business risks.
  3. Practical guidance and benchmarks for all organizations that use information systems.
  4. Frameworks and guidance on enterprise risk management, internal control, and fraud deterrence.

Question 103

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?

  1. The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.
  2. The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.
  3. The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.
  4. The organization should work with the service provider to review the current agreement and expectations relating to objectives, processes, and overall

Question 104

A chief audit executive (CAE) was asked to participate in the selection of an external auditor. Which of the following would not be a typical responsibility for the CAE?

  1. Evaluate the proposed external auditor fee.
  2. Recommend criteria to be used in the selection process.
  3. Develop appropriate performance metrics.
  4. Monitor the work of the external auditors.

Question 105

Which of the following is the most likely reason an organization may decide to undertake a stock split?

  1. To keep stock price constant.
  2. To keep shareholders' equity constant.
  3. To increase shareholders' equity.
  4. To enhance the stock liquidity.