IIA-CIA-Part3-3P Practice Test

An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?

A. Avoidance.

B. Reduction.

C. Elimination.

D. Sharing.

Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?

1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2) The IAA must assess whether the IT governance of the organization supports the organization’s strategies and objectives.
3) The IAA may assess whether the IT governance of the organization supports the organization’s strategies and objectives.
4) The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization’s strategies and objectives.

A. 1 only

B. 4 only

C. 2 and 4

D. 3 and 4

The main reason to establish internal controls in an organization is to:

A. Encourage compliance with policies and procedures.

B. Safeguard the resources of the organization.

C. Ensure the accuracy, reliability, and timeliness of information.

D. Provide reasonable assurance on the achievement of objectives.

Senior management has decided to implement the Three Lines of Defense model for risk management. Which of the following best describes senior management's duties with regard to this model?

A. Ensure compliance with the model.

B. Identify management functions.

C. Identify emerging issues.

D. Set goals for implementation.

Which of the following is a limiting factor for capacity expansion?

A. Government pressure on organizations to increase or maintain employment.

B. Production orientation of management.

C. Lack of credible market leader in the industry.

D. Company diversification.