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The International Institute of Internal Auditors (IIA) is a professional organization that provides certification programs for internal auditors around the world. One of its most popular certification exams is the IIA-CIA-Part3, which focuses on business knowledge for internal auditing. IIA-CIA-Part3 exam is designed to test the candidate's understanding of business concepts and their ability to apply them in an internal audit context.

IIA-CIA-Part3 exam is a three-hour computer-based test that consists of 100 multiple-choice questions. IIA-CIA-Part3 Exam is administered at Pearson VUE test centers around the world. IIA-CIA-Part3 exam is designed to test the candidate's knowledge of business processes, financial management, risk management, and governance. Candidates who pass the exam are awarded the Certified Internal Auditor (CIA) designation.

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IIA-CIA-Part3 exam covers a wide range of topics related to business knowledge, including finance, economics, risk management, and strategic management. It is a challenging exam that requires candidates to demonstrate their mastery of complex concepts and their ability to apply them in practical situations. Successful candidates not only possess a deep understanding of business concepts but also possess the analytical and critical thinking skills necessary to excel in the internal auditing profession.

IIA Internal Audit Function Sample Questions (Q293-Q298):

NEW QUESTION # 293
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. Encrypt the customer information retained by the organization
C. Establish policies that discipline those who misuse customer information
D. Allocate access profiles for each end user of the information

Answer: B

NEW QUESTION # 294
When comparing two companies, if all else is equal, the entity that has a higher dividend payout ratio will have a:

A. Higher price to earnings ratio.
B. Lower debt ratio.
C. Higher marginal cost of capital.
D. Higher investment opportunity schedule.

Answer: C

Explanation:
The higher the dividend payout ratio, the sooner retained earnings are exhausted and the entity must seek more costly, outside equity financing. This drives the marginal cost of capital.

NEW QUESTION # 295
What language interface would a database administrator use to establish the structure of database tables?

A. Data definition language.
B. Data query language.
C. Data manipulation language.
D. Data control language.

Answer: A

Explanation:
The schema is a description of the overall logical structure of the database using data definition language DDL), which is the connection between the logical and physical structure of the database. DDL is used to define, or determine, the database.

NEW QUESTION # 296
The use of message encryption software:

A. Requires manual distribution of keys.
B. Reduces the need for periodic password changes.
C. Guarantees the secrecy of data.
D. Increases system overhead.

Answer: D

Explanation:
Encryption software uses a fixed algorithm to manipulate plain text and an encryption key a set of random data bits used as a starting point for application of the algorithm) to introduce variation. The machine instructions necessary to encrypt and decrypt data constitute system overhead. As a result, processing speed may be slowed.

NEW QUESTION # 297
If all else is equal, entities with higher profit margins require less additional financing for any sales growth rate. If the profit marlin of an entity increased, the funds-needed line would shift:

A. Up and become less steep
B. Up and become more steep
C. Down and become less steep.
D. Down and become more steep.

Answer: C

Explanation:
A higher profit margin would reduce the additional financing needed, shifting the funds needed line down.
Topic 5, Volume E

NEW QUESTION # 298
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