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Quiz IIA-CIA-Part3 - Professional Business Knowledge for Internal Auditing New Exam Pattern

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NEW QUESTION 37
An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

• A. Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.
• B. Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.
• C. Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.
• D. The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided.

Answer: D

NEW QUESTION 38
Quality cost indices are often used to measure and analyze the cost of maintaining or improving the level of quality. Such indices are computed by dividing the total cost of quality over a given period by some measure of activity during that period (for example, sales dollars). The following cost data are available for a company for the month of March. The company's quality cost index is calculated using total cost of quality divided by sales dollars.

The quality cost index for March is:

• A. 7.5
• B. 6.5
• C. 22.0
• D. 5.9

Answer: A

Explanation:
The total cost of quality equals the sum of prevention costs (quality planning), appraisal costs (inspection and testing), internal failure costs (scrap and rework), and external failure costs (customer complaints and returns), or US $30,000 ($2,800 + $6,400 + $16,800 + $4,000). Thus, the quality cost index for March is 7.5 [(US $30,000 - US $400,000) x 100].

NEW QUESTION 39
A total interruption of processing throughout a distributed information technology system can be minimized through the use of:

• A. Backup and recovery.
• B. Exception reporting.
• C. Fault tolerant
• D. Data file security.

Answer: C

Explanation:
An advantage of distributed processing is fault tolerant, that is, the ability to continue processing at all site opt a nonfunctioning one.

NEW QUESTION 40
Which of the following statements about COBIT is not true?

• A. Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.
• B. COBIT helps management understand and manage the risks associated with information technology (IT) processes.
• C. COBIT control objectives are specific to various IT platforms and help determine minimum controls.
• D. COBIT provides management with the capability to conduct self-assessments against industry best practices.

Answer: C

NEW QUESTION 41
How do data analysis technologies affect internal audit testing?

• A. They increase the internal auditor's objectivity
• B. They improve the effectiveness of spot check testing techniques
• C. They allow greater insight into high risk areas.
• D. They reduce the overall scope of the audit engagement.

Answer: C

NEW QUESTION 42
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