Free IIA-CIA-Part3 Practice Test Questions 2026

Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables. Which of the following would be the best argument for using the direct write-off method?

A. It is useful when losses are considered insignificant.

B. It provides a better alignment with revenue.

C. It is the preferred method according to The IIA.

D. It states receivables at net realizable value on the balance sheet.

While auditing an organization's customer call center, an internal auditor notices that Key performance indicators show a positive trend, despite the fact that there have been increasing customer complaints over the same period. Which of the following audit recommendations would most likely correct the cause of this inconsistency?

A. Review the call center script used by customer service agents to interact with callers, and update the script if necessary.

B. Be-emphasize the importance of call center employees completing a certain number of calls per hour.

C. Retrain call center staff on area processes and common technical issues that they will likely be asked to resolve.

D. Increase the incentive for call center employees to complete calls quickly and raise the number of calls completed daily

Management is pondering the following question:
"How does our organization compete?"
This question pertains to which of the following levels of strategy?

A. Functional-level strategy

B. Corporate-level strategy.

C. Business-level strategy,

D. DepartmentsHevet strategy

An organization has 10,000 units of a defect item in stock, per unit, market price is $10$; production cost is $4; and defect selling price is $5. What is the carrying amount (inventory value) of defects at your end?

A. $0

B. $4,000

C. $5,000

D. $10,000

Which of the following is a systems software control?

A. Restricting server room access to specific individuals

B. Housing servers with sensitive software away from environmental hazards

C. Ensuring that all user requirements are documented

D. Performing of intrusion testing on a regular basis

Which of the following IT disaster recovery plans includes a remote site designated for recovery with available space for basic services, such as internet and telecommunications, but does not have servers or infrastructure equipment?

A. Frozen site

B. Cold site

C. Warm site

D. Hot site

Which of the following practices circumvents administrative restrictions on smart devices, thereby increasing data security risks?

A. Rooting.

B. Eavesdropping.

C. Man in the middle.

D. Session hijacking.

Which of the following Issues would be a major concern for internal auditors when using a free software to analyze a third-party vendor's big data?

A. The ability to use the software with ease to perform the data analysis to meet the engagement objectives.

B. The ability to purchase upgraded features of the software that allow for more In-depth analysis of the big data.

C. The ability to ensure that big data entered into the software is secure from potential compromises or loss.

D. The ability to download the software onto the appropriate computers for use in analyzing the big data.

An attacker, posing as a bank representative, convinced an employee to release certain, financial information that ultimately resulted in fraud. Which of the following best describes this cybersecurity risk?

A. Shoulder suiting

B. Pharming,

C. Phishing.

D. Social engineering

According to IIA guidance on IT, which of the following controls the routing of data packets to link computers?

A. Operating system

B. Control environment

C. Network.

D. Application program code

Which of the following is a characteristic of using a hierarchical control structure?

A. Less use of policies and procedures.

B. Less organizational commitment by employees.

C. Less emphasis on extrinsic rewards.

D. Less employee’s turnover.

If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?

A. Settlement of short-term obligations may become difficult.

B. Cash may be bed up in items not generating financial value.

C. Collection policies of the organization are ineffective.

D. The organization is efficient in using assets to generate revenue.