Free IIA-CIA-Part3-3P Practice Test Questions 2026

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.

Which of the following is the most likely reason an organization may decide to undertake a stock split?

A. To keep stock price constant.

B. To keep shareholders' equity constant.

C. To increase shareholders' equity.

D. To enhance the stock liquidity.

Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

A. Both the key used to encrypt the data and the key used to decrypt the data are made public.

B. The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

C. The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

D. Both the key used to encrypt the data and the key used to decrypt the data are made private.

Which of the following strategies is most appropriate for an industry that is in decline?

A. Invest in marketing.

B. Invest in research and development.

C. Control costs.

D. Shift toward mass production.

An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud. Which of the following controls would be least effective in detecting any potential fraudulent activity?

A. Exception report identifying payment anomalies.

B. Documented policy and procedures.

C. Periodic account reconciliation of contractor charges.

D. Monthly management review of all contractor activity.

Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?

A. A multinational company has stockholders in other countries.

B. A multinational company exports its products to other countries.

C. A multinational company operates outside of its country of origin.

D. A multinational company uses raw materials and components from more than one country.

Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

A. Electronic funds transfer.

B. Knowledge-based systems.

C. Biometrics.

D. Standardized graphical user interface.

A capital investment project will have a higher net present value, everything else being equal, if it has:

A. A higher initial investment level.

B. A higher discount rate.

C. Cash inflows that are larger in the later years of the life of the project.

D. Cash inflows that are larger in the earlier years of the life of the project.

Which of the following COSO internal control framework components encompasses establishing structures, reporting lines, authorities, and responsibilities?

A. Control environment.

B. Control activities.

C. Information and communication.

D. Monitoring.

Which of the following are typical responsibilities for operational management within a risk management program?

1) Implementing corrective actions to address process deficiencies.

2) Identifying shifts in the organization's risk management environment.

3)( Providing guidance and training on risk management processes.

4) Assessing the impact of mitigation strategies and activities.

A. 1 and 2 only

B. 1 and 4 only

C. 2 and 3 only

D. 3 and 4 only

Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?

A. Lack of flexibility.

B. Incompatibility with client/server technology.

C. Employee resistance to change.

D. Inadequate technical support.

A manager has difficulty motivating staff to improve productivity, despite establishing a lucrative individual reward system. Which of the following is most likely the cause of the difficulty?

A. High degree of masculinity.

B. Low uncertainty avoidance.

C. High collectivism.

D. Low long-term orientation.