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IIA-CIA-Part3 certification exam is a vital component of the Certified Internal Auditor (CIA) certification program offered by the Institute of Internal Auditors (IIA). IIA-CIA-Part3 Exam, also known as Business Knowledge for Internal Auditing, assesses an individual's understanding of the key concepts and principles of business management and operations. Internal Audit Function certification is essential for professionals who wish to succeed in the field of internal auditing and demonstrate their expertise to employers and clients.
NEW QUESTION # 284
If a series of profit lines for X and Y are drawn on the graph, the mix of X and Y that will result in the maximum profit can be determined from?
Answer: C
Explanation:
A profit line has negative slope because the profit from sales of one product increases as the profit from sales of the other product declines. Moving the profit line rightward (while maintaining its slope) to the last point in the feasible region determines the solution.
NEW QUESTION # 285
Which of me following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?
Answer: D
NEW QUESTION # 286
Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?
Answer: D
NEW QUESTION # 287
Organization X owns a 38 percent equity stake in Organization Y.
Which of the following statements is true regarding the financial treatment for this relationship?
Answer: B
NEW QUESTION # 288
An internal auditor for a pharmaceutical company as planning a cybersecurity audit and conducting a risk assessment. Which of the following would be considered the most significant cyber threat to the organization?
Answer: B
Explanation:
When conducting a cybersecurity risk assessment, an internal auditor must evaluate the most significant threats based on their potential impact on the organization. In the pharmaceutical industry, intellectual property (IP), such as research and development (R&D) data, is one of the most valuable and sensitive assets.
* (A) Cybercriminals hacking into the organization's time and expense system to collect employee personal data:While the loss of employee personal data is a serious concern due to privacy and regulatory implications (e.g., GDPR, CCPA), it does not pose as critical a threat as the loss of proprietary pharmaceutical research.
* (B) Hackers breaching the organization's network to access research and development reports (Correct Answer):R&D reports contain proprietary drug formulas, clinical trial results, and patent- pending innovations, making them highly valuable to competitors and cybercriminals. A breach could lead to intellectual property theft, financial losses, loss of competitive advantage, and regulatory non- compliance (e.g., FDA, EMA requirements). This is considered the most significant threat because:
* It could result in billions of dollars in lost revenue.
* Competitors or state-sponsored hackers could exploit stolen research.
* It could disrupt drug development and approval processes.
* (C) A denial-of-service (DoS) attack that prevents access to the organization's website:While DoS attacks can damage an organization's reputation and disrupt operations, they generally do not cause the same level of financial or strategic harm as the loss of critical R&D data. Most organizations have cybersecurity measures (e.g., load balancers, CDNs) to mitigate DoS risks.
* (D) A hacker accessing the financial information of the company:Unauthorized access to financial data can be serious, leading to fraud or reputational damage. However, publicly traded companies already disclose much of their financial data, and financial breaches typically have a lower long-term impact compared to intellectual property theft.
* IIA Global Technology Audit Guide (GTAG) 15: Information Security Governance: Recommends that internal auditors prioritize risks that impact strategic assets, such as intellectual property.
* IIA Standard 2120 - Risk Management: Requires internal auditors to evaluate the organization's risk management processes, emphasizing risks with significant financial and operational consequences.
* IIA Practice Advisory 2110-2: Assessing the Adequacy of Risk Management Processes: Highlights that internal auditors must identify risks that could threaten the organization's long-term objectives, such as IP theft.
* COSO ERM Framework: Encourages prioritization of risks that have high impact on an organization' s value and strategic objectives, such as cyber threats to proprietary research.
Analysis of Each Option:IIA References:Conclusion:Given the pharmaceutical industry's reliance on proprietary R&D, a breach compromising research reports represents the most significant cyber threat.
Therefore, option (B) is the correct answer.
NEW QUESTION # 289
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