IIA-CIA-Part3-3P IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Free Practice Exam Questions (2025 Updated)
Prepare effectively for your IIA IIA-CIA-Part3-3P CIA Exam Part Three: Business Knowledge for Internal Auditing certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.
Which of the following best describes the concept of relevant cost?
An organization has recorded the following profit and expenses:
Profit before interest and tax
$200,000
Sales
$2,300,000
Purchases of materials
$700,000
Interest expenses
$30,000
If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following
is the amount of VAT that the organization has to pay?
According to Porter, which of the following is associated with fragmented industries?
According to IIA guidance, which of the following would be a primary reason for an internal auditor to test the organization's IT contingency plan?
Which of the following would not impair the objectivity of internal auditor?
All of the following are true with regard to the first-in, first-out inventory valuation method except:
Which of the following local area network physical layouts is subject to the greatest risk of failure if one device fails?
A supervisor receives a complaint from an employee who is frustrated about having to learn a new software
program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:
Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?
Which of the following statements is correct regarding corporate compensation systems and related bonuses?
1) A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.
2) Compensation systems are not part of an organization's control system and should not be reported as such.
3) An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.
In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?
Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:
An internal auditor discovered that several unauthorized modifications were made to the production version of an organization's accounting application. Which of the following best describes this deficiency?
Which of the following describes a typical desktop workstation used by most employees in their daily work?
Which of the following would best prevent unauthorized external changes to an organization's data?
Which of the following statements regarding program change management is not correct?
Which of the following phases of a business cycle are marked by an underuse of resources?
1) The trough.
2) The peak.
3) The recovery.
4) The recession.
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.
Which of the following borrowing options is an unsecured loan?
An organization uses a database management system (DBMS) as a repository for data. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?
