[May 09, 2026] Pass Your IIA-CIA-Part3 Dumps Free Latest IIA Practice Tests
Get Top-Rated IIA IIA-CIA-Part3 Exam Dumps Now
NEW QUESTION # 154
Which of the following statements is true regarding outsourced business processes?
- A. Generally, independence is improved when the internal audit activity reviews outsourced business processes.
- B. Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.
- C. The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.
- D. The system of internal controls may be better and more efficient when the business process is
Answer: D
Explanation:
outsourced compared to internally sourced.
NEW QUESTION # 155
Which of the following security controls would be me most effective in preventing security breaches?
- A. Approval of identity request
- B. Monitoring privileged accounts
- C. Audit of access rights
- D. Access logging.
Answer: A
Explanation:
Preventing security breaches requires proactive security controls, and the approval of identity requests ensures that only authorized individuals gain access to systems and data.
* Types of Security Controls:
* Preventive Controls (Stop security incidents before they happen)
* Detective Controls (Identify security breaches after they occur)
* Corrective Controls (Address security issues after detection)
* Why Identity Request Approval is the Most Effective Preventive Control?
* User access approval ensures that only verified personnel receive credentials.
* According to IIA GTAG on Identity and Access Management, user provisioning must follow strict approval workflows to prevent unauthorized access.
* By restricting access before a breach occurs, organizations reduce risks related to insider threats, phishing attacks, and credential misuse.
* Why Not Other Options?
* B. Access Logging:
* Access logs record activity but do not prevent security breaches.
* C. Monitoring Privileged Accounts:
* Monitoring privileged accounts helps detect suspicious activity but does not stop unauthorized access beforehand.
* D. Audit of Access Rights:
* Regular audits ensure compliance but do not actively prevent unauthorized access in real- time.
* IIA GTAG - Identity and Access Management
* IIA Standard 2120 - Risk Management and IT Controls
* COBIT 2019 - Access Control and Security Management
Step-by-Step Justification:IIA References:Thus, the correct and verified answer is A. Approval of identity request.
NEW QUESTION # 156
Exchange rates are determined by:
- A. Supply and demand in the foreign currency market.
- B. The International Monetary Fund.
- C. Exporters and importers of manufactured goods.
- D. Each industrial country's government.
Answer: A
Explanation:
Although currencies can be supported by various means for short periods, the primary determinant of exchange, rates is the supply of and demand for the various currencies. Under current international agreements, exchange rates are allowed to "float_" During periods of extreme fluctuations, however, governments and control banks may intervene to maintain stability in the market.
NEW QUESTION # 157
On the year-end financial statements, the company will report cost of goods sold of:
- A. US $670.000
- B. US $620,000
- C. US $440,000
- D. US $900,000
Answer: C
Explanation:
Cost of goods sold equals begin rag inventory. plus purchases. m us ending inventory.
Hence cost of goods sold is US $440,000$ 140.000 + $530.000 - $230,000).
NEW QUESTION # 158
A firm must decide the mix of production of Product X and Product Y. There are only two resources used in the two products, resources A and B. Data related to the two products is given in the following table:
What is the appropriate objective function to maximize profit?
- A. 2X + Y
- B. 3X + 7Y
- C. 5X + 8Y
- D. 8X + 6Y
Answer: D
Explanation:
The objective function is the function to be optimized. This firm wishes to maximize profits
on the sales of two products (X and Y). Based on profits per unit (US $8 and US $6, respectively), the objective function is 8X + 6Y.
NEW QUESTION # 159
What is the tax expense that would have been reported on Lally's income statement for the year ended December 31 Year 1?
- A. US $1,560,000
- B. US $1.528.000 C US $1.600.000
D US $1,568,000
Answer: A
Explanation:
Tax expense tax income) equals the sum of current tax expense current tax income) and deferred tax expense deferred tax income). Current tax expense equals taxes paid or payable, and deferred tax expense equals the change in the entity's deferred tax assets and liabilities. Because US $100,000 of interest income and US $80,UOn of rental income are not subject to tax in Year 1. taxable profit is US $3,820,000, and current tax expense is I I $1.528.000. Deferred tax expense equals the deferred tax liability US $51 1.000 40% = US $32,000) at year end, assuming no deferred tax asset or liability balances existed at the beginning of the year. Hence tax expense is US$1.560.000$1.528.000 + $32,000).
The following relates to Lally PLC for Year 1 and Year 2.
Profit before income taxes in Year 1 included rent income of US $80,000 that was not subject to income tax until its receipt in Year 2.
Lally was subject to an effective income tax rate of 40% in Year 1 and Year 2.
NEW QUESTION # 160
Which of the following statements about market signaling is correct?
1.The organization releases information about a new product generation.
2.The organization limits a challenger's access to the best source of raw materials or labor.
3.The organization announces that it is fighting a new process technology.
4.The organization makes exclusive arrangements with the channels.
- A. 2 and 3 only
- B. 1 and 4 only
- C. 1 and 3 only
- D. 2 and 4 only
Answer: C
NEW QUESTION # 161
Which of the following budgets must be prepared first?
- A. Production budget.
- B. Cash budget.
- C. Sales budget.
- D. Selling and administrative expenses budget.
Answer: C
NEW QUESTION # 162
The dominant firm in a market pursues a market-leader strategy. This strategy may involve
- A. A flank defense to strengthen the firm's brand.
- B. Sending market signals as a mobile defense.
- C. Holding the market stable to avoid attracting new competitors.
- D. Innovations as an offensive strategy.
Answer: D
Explanation:
Constant innovation to improve products and services, control costs, and increase distribution effectiveness is the basis for a good offensive strategy. The leader must continuously improve the value offered to customers.
NEW QUESTION # 163
Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?
- A. The "Funds Needed" line will remain pointed upward, but will become more steep.
- B. The "Funds Needed" line will point downward with an extreme slope.
- C. The "Funds Needed" line will point downward with a minimal slope.
- D. The "Funds Needed" line will remain pointed upward, but will become less steep.
Answer: A
NEW QUESTION # 164
According to Porter, which of the following is associated with fragmented industries?
- A. Strong negotiation power with suppliers.
- B. Significant scale economies.
- C. Weak entrance barriers.
- D. Steep experience curve.
Answer: C
NEW QUESTION # 165
Government subsidies of the domestic production of military weapons is an example of what rationale for government intervention in trade?
- A. Protecting the national identity.
- B. Maintenance of essential industries.
- C. Infant industry concept.
- D. Maintenance of extension of spheres of influence.
Answer: B
Explanation:
Providing subsidies to military weapons manufacturers is an example of the essential industry argument. The government protects essential domestic industries during peacetime so that a country is not dependent on foreign sources of supply during war.
NEW QUESTION # 166
Entity A acquires entity B for US $1.000.000. At the time of the acquisition the net fair value of the identifiable assets, liabilities, and contingent liabilities recognized had a carrying amount of US $900,000 and a fair value of US $800,000. The amount of goodwill entity A will record on the acquisition date is
- A. US $300,000
- B. US $200,000
- C. US $0
- D. US $100,000
Answer: B
Explanation:
Goodwill equals the excess of the acquisition cost over the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized. Consequently goodwill is US $200.000$1,000,000 - $800,000).
NEW QUESTION # 167
Which one of the following will usually be accounted for by recognizing a provision?
- A. A law requires an airline to overhaul its aircraft once every 3 years.
- B. Premiums offered to customers.
- C. Just prior to the balance sheet date, the board decided b. close a division. No implementation steps have been taken.
- D. As of the balance sheet date, the board was aware that a new law would require the entity to fit smoke filters to its factories within the next year. No such filters have been fitted.
Answer: B
Explanation:
When premiums are offered to customers, for example, upon redemption of coupons the entity can usually establish that it has a legal present obligation resulting from a past event and that an outflow of economic benefits is probable. Furthermore, if the entity has prior experience with such offers or information about the experience of similar entities, a reliable estimate of the obligation should be feasible. If no obligating event has occurred, the entity could avoid the future expenditure by its future actions.
NEW QUESTION # 168
According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?
1. Organizational governance.
2. Organizational operations.
3. Organizational information systems.
4. Organizational structure.
- A. 1, 2, and 4 only
- B. 1 and 3 only
- C. 1, 2, and 3 only
- D. 2 and 4 only
Answer: C
NEW QUESTION # 169
On September 22, Year 1, a corporation purchased merchandise from an unaffiliated foreign entity for 10.000 units of the foreign entity's local currency. On that date, the spot rate was US $.55. The corporation paid the bill in full on March 20. Year 2, when the spot rate was US $.65. The closing rate was US $.70 on December 31, Year 1. What amount should the corporation report as a foreign currency transaction loss in its income statement for the year ended December 31, Year 1?
- A. US $500
- B. US $1,000
- C. US $0
- D. US $1.500
Answer: D
Explanation:
A receivable or payable fixed in a foreign currency is adjusted to its current exchange rate at each balance sheet date. The resulting gain or loss should ordinarily be included in determining profit or loss. It is the difference between the spot rate on the date the transaction originates or the rate applied in the prior year) and the closing rate. Thus, the Year 1 transaction loss for Yumi Corp. is US $1,500 [10.000 units$0.55 - $0.70)].
NEW QUESTION # 170
......
Passing Key To Getting IIA-CIA-Part3 Certified Exam Engine PDF: https://www.test4engine.com/IIA-CIA-Part3_exam-latest-braindumps.html
IIA-CIA-Part3 Exam Dumps Pass with Updated Tests Dumps: https://drive.google.com/open?id=1eWaM0MZ4FUsGDmhSm0oOcEO5vsULNSq3