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IIA IIA-CIA-Part3 Exam Overview:

Certification Vendor:	IIA (The Institute of Internal Auditors)
Exam Name:	Internal Audit Function
Exam Number:	IIA-CIA-Part3
Exam Price:	USD 380 (member) / USD 495 (non-member)
Certificate Validity Period:	3 years from completion of all parts
Real Exam Qty:	100
Available Languages:	English, German, Spanish, Russian, Chinese (Simplified), Japanese, French, Italian, Korean, Portuguese
Related Certifications:	CIA Part 1 - Essentials of Internal Auditing CIA Part 2 - Practice of Internal Auditing
Passing Score:	600 (scaled score, range 250–750)
Exam Duration:	120 minutes
Exam Format:	Computer-based testing, Multiple-choice questions
Recommended Training:	IIA Learning Resources IIA Official Study Materials
Exam Registration:	IIA Official Registration Pearson VUE Scheduling
Sample Questions:	IIA IIA-CIA-Part3 Sample Questions
Exam Way:	Computer-based; available at Pearson VUE test centers worldwide; online proctored option available in select regions
Pre Condition:	Meet CIA eligibility: bachelor's degree or equivalent, character reference, professional experience (varies by education level); complete CIA application and pay application fee
Official Syllabus URL:	https://www.theiia.org/en/certifications/cia/exam-prep-resources/exam-syllabus/exam-syllabus-part-3/

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Passing the IIA-CIA-Part3 Exam is an important milestone for candidates pursuing the CIA certification. It demonstrates their knowledge and proficiency in applying business concepts to internal auditing. It also helps them develop a deeper understanding of the business environment and its impact on internal auditing. Moreover, passing the exam can also lead to career advancement opportunities and higher salaries.

IIA Internal Audit Function Sample Questions (Q76-Q81):

NEW QUESTION # 76
Which of the following descriptions of the internal control system are indicators that risks are managed effectively?
1. Existing controls promote compliance with applicable laws and regulations.
2. The control environment is designed to address all identified risks to the organization.
3. Key controls for significant risks to the organization remain consistent over time.
4. Monitoring systems are in place to alert management to unexpected events.

A. 1 and 3.
B. 2 and 4.
C. 1 and 4.
D. 2 and 3.

Answer: C

NEW QUESTION # 77
There are many different budget techniques or processes that business organizations can employ. One of these techniques or processes is zero-based budgeting, which is

A. Budgeting from the ground up as though the budget process were being initiated for the first time.
B. Developing budgeted costs from clear-cut measured relationships between inputs and outputs
C. Budgeting for cash inflows and outflows to time investments and borrowings in a way to maintain a bank account with a minimum balance
D. Using the prior year's budget as a base year and adjusting it based on the experiences of the prior year and the expectations for the coming year

Answer: A

Explanation:
Zero-based budgeting ZBB) is a planning process in which each manager must justify a department's entire budget every year or period). Under ZBB, a manager must build the budget every year from a base of zero. All expenditures must be justified regardless of the variances from previous years' budgets. The objective is to encourage periodic reexamination of all costs in the hope that some can be reduced or eliminated. Different levels of serve. e work effort) are evaluated for each activity, measures of work and performance are established, and activities are ranked prioritized) according to their importance to the entity. For each budgetary unit, decision packages are prepared that describe various levels of service that may be provided, including at least one lower than the current one.

NEW QUESTION # 78
The internal auditor of a bank has developed a multiple regression model that has been used for a number of years to estimate the amount of interest income from commercial loans. During the current year, the auditor applies the model and discovers that the r2 value has decreased dramatically, but the model otherwise seems to be working. Which of the following conclusions is justified by the change?

A. Some new factors not included in the model are causing interest income to change.
B. Changing to a cross-sectional regression analysis should cause r 2Xo increase.
C. A linear regression analysis would increase the model's reliability.
D. Regression analysis is no longer an appropriate technique to estimate interest income.

Answer: A

Explanation:
The coefficient of determination (r2) is the amount of variation in the dependent variable (interest income) that is explained by the independent variables. In this case, less of the change in interest income is explained by the model. Thus, some other factor must be causing interest income to change. This change merits audit investigation.

NEW QUESTION # 79
Which of the following methods has the lowest risk of inaccurate authentication?

A. Personal security questions.
B. Fingerprint identification.
C. Signature verification.
D. Complex passwords.

Answer: B

Explanation:
Fingerprint identification has the lowest risk of inaccurate authentication among the listed options because it uses a biometric characteristic that is difficult to guess, share, or replicate compared with knowledge-based methods. Complex passwords can still be stolen, phished, reused, or written down. Signature verification can be subjective and vulnerable to forgery or poor capture quality. Personal security questions are often weak because answers may be discoverable through social media, public records, or personal knowledge. Biometric controls are not perfect and require proper enrollment, template protection, false acceptance monitoring, and privacy safeguards. However, in comparison with the other options, fingerprint identification provides stronger identity assurance. Therefore, Option A is correct.

NEW QUESTION # 80
Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

A. Cost method
B. Equity method
C. Consolidation method
D. Fair value method

Answer: B

NEW QUESTION # 81
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