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IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Sample Questions (Q157-Q162):

NEW QUESTION # 157
An organization is considering outsourcing its IT services, and the internal auditor is assessing the related risks. The auditor grouped the related risks into three categories:
Risks specific to the organization itself.
Risks specific to the service provider.
Risks shared by both the organization and the service provider.
Which of the following risks should the auditor classify as specific to the service provider?

A. Inadequate staffing.
B. Unexpected increases in outsourcing costs.
C. Violation of contractual terms.
D. Loss of data privacy.

Answer: D

NEW QUESTION # 158
New data privacy laws require an organization to use collected customer information for me sole purpose of meeting the organization's business requirements. Which of the following best addresses the risk of the organization not complying with this objective?

A. Provide training on social engineering attacks
B. Allocate access profiles for each end user of the information
C. Encrypt the customer information retained by the organization
D. Establish policies that discipline those who misuse customer information

Answer: C

NEW QUESTION # 159
An internal auditor has been approved lo gather data directly horn the organization's relational database management system tor data analyses To collect the data which of the Wowing is most important for the auditor to know?

A. Data management system such as Oracle
B. Basic web development
C. Structured query language
D. Spreadsheet software such as Excel

Answer: C

NEW QUESTION # 160
Which of the following is not a common feature of cumulative preferred stock?

A. Priority over common stock with regard to earnings.
B. Priority over common stock with regard to dilution of shares.
C. Priority over common stock with regard to assets.
D. Priority over common stock with regard to dividend payment.

Answer: B

NEW QUESTION # 161
Which of the following borrowing options is an unsecured loan?

A. Pledged accounts receivable.
B. Second-mortgage financing from a bank.
C. An issue of commercial paper.
D. Asset-based financing.

Answer: C

NEW QUESTION # 162
......

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