IIA-CIA-PART3-3P Online Practice Questions and Answers

Which of the following is an example of a risk avoidance response?

A. Buying an insurance policy to protect against loss events.

B. Hedging against natural gas price fluctuations.

C. Selling a non-strategic business unit.

D. Outsourcing a high risk process to a third party.

The process of scenario planning begins with which of the following steps?

A. Determining the trends that will influence key factors in the organization's environment.

B. Selecting the issue or decision that will impact how the organization conducts future business.

C. Selecting leading indicators to alert the organization of future developments.

D. Identifying how customers, suppliers, competitors, employees, and other stakeholders will react.

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?

1) It significantly raises compensation and staffing costs.

2) It produces resentment among the organization's employees in host countries.

3) It limits career mobility for parent-country nationals.

4) It can lead to cultural myopia.

A. 1 and 4 only

B. 2 and 3 only

C. 1, 2, and 3 only

D. 1, 2, and 4 only

Which of the following conditions could lead an organization to enter into a new business through internal development rather than through acquisition?

A. It is expected that there will be slow retaliation from incumbents.

B. The acquiring organization has information that the selling organization is weak.

C. The number of bidders to acquire the organization for sale is low.

D. The condition of the economy is poor.

What are the objectives of governance as defined by the Standards?

A. Inform, direct, manage, and monitor.

B. Identify, assess, manage, and control.

C. Organize, assign, authorize, and implement.

D. Add value, improve, assure, and conform.

The first step in determining product price is:

A. Determining the cost of the product.

B. Developing pricing objectives.

C. Evaluating prices set by the competitors.

D. Selecting a pricing method.

The first stage in the development of a crisis management program is to:

A. Formulate contingency plans.

B. Conduct a risk analysis.

C. Create a crisis management team.

D. Practice the response to a crisis.

An organization has received funding to continue a program that utilizes an in-house Due to new legislative requirements the application will require additional features to capture information not previously collected Which of the following is the most critical for completing this specific project?

A. A detailed budget that identifies hardware resources for the project

B. A Gantt chart that identifies the critical path for completing the project

C. Change management controls to avoid technical conflicts within the application

D. A project plan with a flexible scope to accommodate legislative requirements

An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

A. Hardware encryption.

B. Software encryption

C. Data encryption.

D. Authentication.

According to IIA guidance, which of the following is the correct order to conduct a business impact analysis (BIA) for the potential loss of an organization's network services''

1.

identify resources and partners to provide required recovery services

2.

Identify the business processes supporting the network functionality

3.

Obtain approval of the BIA from the operating managers relative to their areas of responsibility

4.

Identify the business impact if the network services cannot be performed

A. 1, 2, 3, 4

B. 2, 1, 4, 3

C. 2, 4, 1, 3

D. 4, 2, 1, 3