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IIA-CIA-Part3 – Certified Internal Auditor - Part 3, Business Analysis and Information Technology

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Showing 1–3 of 15 questions

Question 1

Which of the following descriptions of the internal control system are indicators that risks are managed effectively?

1. Existing controls promote compliance with applicable laws and regulations.

2. The control environment is designed to address all identified risks to the organization.

3. Key controls for significant risks to the organization remain consistent over time.

4. Monitoring systems are in place to alert management to unexpected events.

Select an option, then click Submit answer.

  • ○

    1 and 3.
  • ○

    1 and 4.
  • ○

    2 and 3.
  • ○

    2 and 4.
Question 2

When assessing the adequacy of a risk mitigation strategy, an internal auditor should consider which of the following?

1. Management’s tolerance for specific risks.

2. The cost versus benefit of implementing a control.

3. Whether a control can mitigate multiple risks.

4. The ability to test the effectiveness of the control.

Select an option, then click Submit answer.

  • ○

    1, 2, and 3
  • ○

    1, 2, and 4
  • ○

    1, 3, and 4
  • ○

    2, 3, and 4
Question 3

Which of the following costs would be incurred in an inventory stockout?

Select an option, then click Submit answer.

  • ○

    Lost sales, lost customers, and backorder.
  • ○

    Lost sales, safety stock, and backorder.
  • ○

    Lost customers, safety stock, and backorder.
  • ○

    Lost sales, lost customers, and safety stock.