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IIA-CIA-Part3 certification is ideal for internal auditors who want to demonstrate their understanding of business concepts and their ability to apply them to the internal audit process. Internal Audit Function certification is also beneficial for those who want to advance their careers in the field of internal auditing, as it is a globally recognized credential that demonstrates a high level of expertise and knowledge.
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IIA-CIA-Part3 Certification Exam consists of 100 multiple-choice questions that must be answered within two and a half hours. Candidates who pass the exam are awarded the Certified Internal Auditor (CIA) designation, which is recognized by employers and industry organizations worldwide. Internal Audit Function certification program is designed to help internal auditors develop the skills and knowledge necessary to provide effective and efficient audit services to their organizations.
NEW QUESTION # 619
In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners. Which of the following network types is illustrated by this scenario?
Answer: B
Explanation:
A Value-Added Network (VAN) is a private, third-party managed network that provides secure electronic data interchange (EDI) and other communication services between business partners. VANs offer enhanced security, reliability, and efficiency in transmitting business-critical data, making them ideal for companies engaged in manufacturing and distribution that require secure and structured communication channels with trading partners.
* Secure Network for Business Partners: The scenario describes a network that facilitates EDI between a company and its trading partners. A VAN specializes in providing secure and structured business communications.
* Enhanced Efficiency and Customer Service: VANs streamline business operations by reducing transaction errors, improving order fulfillment, and increasing operational efficiencies.
* Third-Party Management: Unlike traditional internal networks, VANs are managed by external service providers that offer additional security, compliance, and encryption measures.
* Alignment with Internal Auditing Standards: The IIA emphasizes the importance of secure and reliable communication networks in governance, risk management, and internal controls. Secure data exchanges through a VAN mitigate risks associated with unauthorized access and data breaches.
* B. A Local Area Network (LAN): LANs are confined to a limited geographical area, such as an office or a factory, and are used for internal communication rather than secure external partner communication.
* C. A Metropolitan Area Network (MAN): MANs connect multiple LANs within a city or a metropolitan region but are not specifically designed for business-to-business data exchange.
* D. A Wide Area Network (WAN): While WANs connect geographically dispersed networks, they do not inherently provide the secure, structured EDI services that a VAN does.
* IIA Standard 2110 - Governance: Emphasizes the importance of IT governance and secure communication channels in protecting business data.
* IIA Standard 2120 - Risk Management: Highlights the need for secure data transmission to mitigate cyber risks.
* IIA Standard 2201 - Planning the Engagement: Requires auditors to assess IT infrastructure, including networks used for business operations.
* COBIT Framework (Control Objectives for Information and Related Technologies): Supports the use of secure, managed networks like VANs for business data exchange.
Key Reasons Why Option A is Correct:Why Other Options Are Incorrect:IIA References:Thus, the correct answer is A. A Value-Added Network (VAN).
NEW QUESTION # 620
For control purposes, which of the following should be organizationally segregated from the computer operations function?
Answer: D
Explanation:
Systems development is performed by systems analysts and application programmers.
NEW QUESTION # 621
Management of a bookkeeping company observed that the average time spent to perform identical tasks using a new software package decreases as the number of tasks performed increases. The following information on the use of the new software was collected.
If this learning effect continues, what is the average time to perform each of the first eight tasks?
Answer: D
Explanation:
Learning curves reflect the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. This technique is applicable only to the early stages of production or to any new task. One common assumption is that the cumulative average time per unit is reduced by a fixed percentage each time cumulative production is doubled. Based on the given data, this company has a 90% learning curve (90% x 10 minutes = 9 minutes, and 90% x 9 minutes =
8.1 minutes). Accordingly, the cumulative average time to perform eight tasks is 7.29 minutes (90% x 8.1 minutes).
NEW QUESTION # 622
A manufacturing company is attempting to implement a just-in-time (JIT) purchase policy system by negotiating with its primary suppliers to accept long-term purchase orders which result in more frequent deliveries of smaller quantities of raw materials. If the JIT purchase policy is successful in reducing the total inventory costs of the manufacturing company, which of the following combinations of cost changes would be most likely to occur?
Answer: C
Explanation:
The objective of a JIT system is to reduce carrying costs by eliminating inventories and increasing the deliveries made by suppliers. Ideally, shipments are received just in time to be incorporated into the manufacturing process. This system increases the risk of stock out costs because the inventory buffer is reduced or eliminated.
NEW QUESTION # 623
A major disadvantage of the life cycle approach to system development is that it is not well-suited for projects that are:
Answer: B
Explanation:
The life cycle approach is best employed when systems are large and highly structured, users understand the tasks to be performed by the information system, and the developers have directly applicable experience in designing similar systems. In the life cycle process. each stage of development is highly structured, and requirements are clearly defined. However, when the task is unstructured, prototyping may be the better approach.
NEW QUESTION # 624
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