[Sep 19, 2025] Today Updated IIA-CIA-Part3-3P Exam Dumps Actual Questions
IIA-CIA-Part3-3P exam dumps with real IIA questions and answers
Passing the CIA Exam Part Three: Business Knowledge for Internal Auditing is essential for anyone who wants to become a Certified Internal Auditor. IIA-CIA-Part3-3P exam is designed to ensure that candidates have a deep understanding of the business environment and can apply that knowledge to the internal audit function. IIA-CIA-Part3-3P exam measures the candidate's ability to identify and assess business risks and develop effective strategies to mitigate those risks.
NEW QUESTION # 143
For employees, the primary value of implementing job enrichment is which of the following?
- A. An increased opportunity to manage better the work done by their subordinates.
- B. Support for personal growth and a meaningful work experience.
- C. Validation of the achievement of their goals and objectives.
- D. Increased knowledge through the performance of additional tasks.
Answer: B
NEW QUESTION # 144
Which of the following is the best reason for considering the acquisition of a nondomestic organization?
- A. Improved cash flow of the acquiring organization.
- B. Increased diversity of corporate culture.
- C. Opportunity to influence local government policy.
- D. Relatively fast market entry.
Answer: D
NEW QUESTION # 145
Which of the following statements is true regarding partnership liquidation?
- A. When a partnership is liquidated, each partner pays creditors from cash received
- B. Partnership liquidation ends both the legal and economic life of an entity
- C. Partnership liquidation occurs when there is capital deficiency Stable
- D. Operations can continue after the liquidation if all partners agree
Answer: B
NEW QUESTION # 146
Which of the following costs would be incurred in an inventory stockout?
- A. Lost sales, lost customers, and safety stock.
- B. Lost sales, lost customers, and backorder.
- C. Lost sales, safety stock, and backorder.
- D. Lost customers, safety stock, and backorder.
Answer: B
NEW QUESTION # 147
Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?
- A. Decentralized organizations tend to be less expensive to operate.
- B. Decentralized organizations tend to be more responsive to market changes.
- C. Decentralized organizations are more focused on organizational goals.
- D. Decentralized organizations streamline organizational structure.
Answer: B
NEW QUESTION # 148
When is an organic organizational structure likely to be more successful than a mechanistic organizational structure?
- A. When a manufacturer has reliable resources and suppliers
- B. When an organization is infrequently affected by technological advances
- C. When an organization is subjected to strong political and social pressures
- D. When a manufacturing organization has stable demand for its products.
Answer: B
NEW QUESTION # 149
According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:
- A. Recognize that organizations use different techniques for managing risk.
- B. Seek assurance that the key objectives of the risk management processes are being met.
- C. Determine and accept the level of risk for the organization.
- D. Treat the evaluation of risk management processes differently from the risk analysis used to plan audit engagements.
Answer: C
NEW QUESTION # 150
Which of the following is the first step an internal audit activity should undertake when executing a data analytics process?
- A. Define the purpose and the anticipated value
- B. Analyze possible and available sources of raw data
- C. Select data for cleaning and normalization procedures.
- D. Conduct a risk assessment regarding the effectiveness of the data analytics process.
Answer: B
NEW QUESTION # 151
When auditing an application change control process, which of the following procedures should be included in the scope of the audit?
1) Ensure system change requests are formally initiated, documented, and approved.
2) Ensure processes are in place to prevent emergency changes from taking place.
3) Ensure changes are adequately tested before being placed into the production environment.
4) Evaluate whether the procedures for program change management are adequate.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 3, and 4 only
- D. 1 only
Answer: C
NEW QUESTION # 152
In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?
- A. It centralizes control with little decision-making authority given to the local level.
- B. It is an effective strategy when large differences exist between countries.
- C. It uses the same products in all countries.
- D. It provides cost advantages, improves coordinated activities, and speeds product development.
Answer: B
NEW QUESTION # 153
A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?
- A. If the number of bicycles produced is increased by 15 percent, the variable cost per unit will increase proportionally
- B. The fixed cost per unit will vary directly based on the number of bicycles produced during the production cycle
- C. If the number of bicycles produced is increased by 30 percent the fixed cost per unit will decline
- D. The total variable cost will vary proportionally and inversely with the number of bicycles produced during a production run
Answer: C
NEW QUESTION # 154
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:
- A. Observing and analyzing controls.
- B. Identifying risks to the organization's operations.
- C. Prioritizing known risks.
- D. Reviewing organizational objectives.
Answer: D
NEW QUESTION # 155
Which of the following characteristics applies to an organization that adopts a flat structure?
- A. The span of control is wide.
- B. The lower-level managers are encouraged to exercise creativity when solving problems.
- C. The structure is dispersed geographically.
- D. The hierarchy levels are more numerous.
Answer: A
NEW QUESTION # 156
An organization had a gross profit margin of 40 percent in year one and in year two. The net profit margin was 18 percent in year one and 13 percent in year two.
Which of the following could be the reason for the decline in the net profit margin for year two?
- A. The organization had a higher dividend payout rate in year two.
- B. Total sales increased relative to expenses.
- C. The government increased the corporate tax rate.
- D. Cost of sales increased relative to sales.
Answer: D
NEW QUESTION # 157
According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?
1) Consult on CSR program design and implementation.
2) Serve as an advisor on CSR governance and risk management.
3) Review third parties for contractual compliance with CSR terms.
4) Identify and mitigate risks to help meet the CSR program objectives.
- A. 1, 2, and 3
- B. 2, 3, and 4
- C. 1, 3, and 4
- D. 1, 2, and 4
Answer: A
NEW QUESTION # 158
Which of the following options correctly defines a transmission control protocol/Internet protocol (TCP/IP)?
- A. A network of servers used to control a variety of mission-critical operations.
- B. System software that translates hypertext markup language to allow users to view a remote webpage.
- C. A standardized set of guidelines that facilitates communication between computers on different networks.
- D. System software that acts as an interface between a user and a computer.
Answer: C
NEW QUESTION # 159
Which of the following characteristics is most important specifically for a global manager to possess in order to be successful?
- A. Knowledge of different languages.
- B. Emotional intelligence
- C. Understanding of uncertainty avoidance differences
- D. Cultural intelligence
Answer: D
NEW QUESTION # 160
Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?
- A. Promote closer linkage between organizational strategy and information.
- B. Provide users with greater online access to information systems.
- C. Enhance the functionality of application systems.
- D. Expand the use of automated controls.
Answer: C
NEW QUESTION # 161
Which of the following strategies is most appropriate for an industry that is in decline?
- A. Control costs.
- B. Invest in marketing.
- C. Invest in research and development.
- D. Shift toward mass production.
Answer: A
NEW QUESTION # 162
Which of the following is not a method for implementing a new application system?
- A. Test.
- B. Direct cutover.
- C. Parallel.
- D. Pilot.
Answer: A
NEW QUESTION # 163
A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.
Which of the following organizational structures does this situation represent?
- A. Product departmentalization.
- B. Divisional organization.
- C. Matrix organization.
- D. Functional departmentalization.
Answer: D
NEW QUESTION # 164
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