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

Which of the following is an example of a nonfinancial internal failure quality cost?

A. Decreasing gross profit margins over time.

B. Foregone contribution margin on lost sales.

C. Defective units shipped to customers.

D. Excessive time to convert raw materials into finished goods.

According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?

A. Key processes across the entity which impact quality must be identified and included.

B. The quality management system must be documented in the articles of incorporation, quality manual, procedures, work instructions, and records.

C. Management must review the quality policy, analyze data about quality management system performance, and assess opportunities for improvement and the need for change.

D. The entity must have processes for inspections, testing, measurement, analysis, and improvement.

Which stage in the industry life cycle is characterized by many different product variations?

A. Introduction.

B. Growth.

C. Maturity.

D. Decline.

Which of the following would not impair the objectivity of internal auditor?

A. Management assurance on risks.

B. Implementing risk responses on behalf of management.

C. Providing assurance that risks assessed are correctly evaluated.

D. Setting the risk appetite.

The cost to enter a foreign market would be highest in which of the following methods of global expansion?

A. Joint ventures.

B. Licensing.

C. Exporting.

D. Overseas production.

All of the following are possible explanations for a significant unfavorable material efficiency variance except:

A. Cutbacks in preventive maintenance.

B. An inadequately trained and supervised labor force.

C. A large number of rush orders.

D. Production of more units than planned for in the master budget.

Which mindset promotes the most comprehensive risk management strategy?

A. Increase shareholder value.

B. Maximize market share.

C. Improve operational efficiency.

D. Mitigate losses.

Which of the following conflict resolution methods should be applied when the intention of the parties is to solve the problem by clarifying differences and attaining everyone's objectives?

A. Accommodating.

B. Compromising.

C. Collaborating.

D. Competing.

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.

A. 1 and 3 only

B. 1 and 4 only

C. 2 and 3 only

D. 2 and 4 only

Which of the following application software features is the least effective control to protect passwords?

A. Suspension of user IDs after a user's repeated attempts to sign on with an invalid password.

B. Encryption of passwords prior to their transmission or storage.

C. Forced change of passwords after a designated number of days.

D. Automatic logoff of inactive users after a specified time period of inactivity.

Which of the following is an element of effective negotiating?

A. Ensuring that the other party has a personal stake in the agreement.

B. Focusing on interests rather than on obtaining a winning position.

C. Considering a few select choices during the settlement phase.

D. Basing the agreement on negotiating power and positioning leverage.

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