Free IIA-CIA-Part3 Exam Braindumps

- (Exam Topic 2)
An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?

1. A. Standards used for evaluation and control are determined at local subsidiaries, not set by headquarters.
2. B. Orders, commands and advice are sent to the subsidiaries from headquarters.
3. C. People of local nationality are developed for the best positions within their own country
4. D. There is a significant amount of collaboration between headquarters and subsidiaries.

Correct Answer: B

- (Exam Topic 1)
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

1. A. Identifying risks to the organization's operations.
2. B. Observing and analyzing controls.
3. C. Prioritizing known risks.
4. D. Reviewing organizational objectives.

Correct Answer: D

- (Exam Topic 2)
When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

1. A. Direct product costs
2. B. Indirect product costs
3. C. Direct period costs
4. D. Indirect period costs.

Correct Answer: A

- (Exam Topic 2)
New data privacy laws require an organization to use collected customer information for me sole purpose of meeting the organization's business requirements. Which of the following best addresses the risk of the organization not complying with this objective?

1. A. Provide training on social engineering attacks
2. B. Encrypt the customer information retained by the organization
3. C. Establish policies that discipline those who misuse customer information
4. D. Allocate access profiles for each end user of the information

Correct Answer: B

- (Exam Topic 1)
Which of the following techniques is the most relevant when an internal auditor conducts a valuation of an organization's physical assets?

1. A. Observation.
2. B. Inspection.
3. C. Original cost.
4. D. Vouching.

Correct Answer: B