IIA CIA EXAM PART 3 |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
When attempting to devise creative solutions to problems, team members initially should
do which of the following?
a) Suspend assumptions and negative feedback.
b) Weigh suggestions based on the speaker's level of authority.
c) Discuss the details of all options presented.
d) Provide documentation to support their positions.
CORRECT ANSWER
CORRECT (a)
Question 2
Which of the following is an example of a detective information security control?
a) Positive pay service.
b) System access.
c) Antivirus software.
d) Encryption.
CORRECT ANSWER
CORRECT (a) a positive pay system is designed to detect fraudulent checks. (B), (C), and
(D) are incorrect; these are preventive controls.
Question 3
1
,Which of the following is most likely to determine the frequency of system backup
schedules?
a) Maximum tolerable downtime.
b) Backup storage options.
c) Budget allocated to IT services.
d) Architecture and configuration of the system.
CORRECT ANSWER
CORRECT (A) the amount of time that an organization can function without its systems
determines the frequency of its backup schedules. (B), (C), and (D) are incorrect; these
are significant considerations for backup operations, but should not determine the
frequency of backups.
Question 4
An analysis showed that reported sales from one of the organization's sales teams had
exceeded planned sales targets. Which of the following management plans did the
internal auditor likely use to conduct the analysis?
a) Operational plan.
b) Tactical plan.
c) Strategic plan.
d) Standing plan.
CORRECT ANSWER
CORRECT (a) The goals outlined in an operational plan are assigned to individuals or
teams and measurable quantitatively, which would be appropriate to assess reported
sales against sales targets. (B) is incorrect; a tactical plan outlines departmental or
divisional goals in mostly qualitative terms. (C) is incorrect; a strategic plan defines the
broad, long-term, organizationwide goals, and would be unlikely to address sales targets
specifically. (D) is incorrect; standing plans provide guidance for many departments to
perform repetitive tasks.
2
,Question 5
Which of the following is a primary objective of the theory of constraints?
a) Full or near capacity in processes.
b) Smooth workflow among processes.
c) Few or no defects.
Lowered inventory levels.
CORRECT ANSWER
CORRECT (B) the theory of constraints aims to achieve smooth work flow among
processes by removing bottlenecks that hinder goals. (A) is incorrect; this may be a
benefit of the theory of constraints, but is not its primary objective. (C) is incorrect; this
is the objective of total quality management. (D) is incorrect; this is the objective of just-
in-time inventory.
Question 6
An internal auditor is investigating a potential fraudulent activity. What is the first test the
auditor should perform on the transaction data under scrutiny?
a) Digital analysis for statistically unlikely occurrences that may indicate system tampering.
b) Verification of the completeness and integrity of the obtained data.
c) Detailed review of the data contents to strategize the best analytical techniques.
d) Calculation of statistical parameters to identify outliers requiring further scrutiny.
CORRECT ANSWER
CORRECT (b) . (A) and (D) are incorrect; these are valid potential tests, but not the first
tests. (C) is incorrect; this is typically the second step.
Question 7
A toy manufacturer wants to determine how many toys should be produced and sold to
achieve a zero net income for the quarter. In addition to the contribution margin, which of
the following is needed to make this computation?
3
, a) The total fixed cost for the quarter.
b) The total variable cost for the quarter.
c) The unit selling price of each toy.
d) The net income for the quarter.
CORRECT ANSWER
CORRECT (a) in order to calculate how many toys need to be produced and sold, we must
know the contribution margin and fixed costs.
Question 8
The balanced scorecard approach differs from traditional performance measurement
approaches because it adds which of the following measures?1.Financial
measures.2.Internal business process measures.3.Client satisfaction
measures.4.Innovation and learning measures.
a) 1 only.
b) 2 and 4 only.
c) 3 and 4 only.
d) 2, 3, and 4 only.
CORRECT ANSWER
CORRECT (d) measures 2, 3, and 4 are all added by balanced scorecard approach. (A), (B),
and (C) are incorrect; measure 1 is not valid, as it applies to both traditional performance
measurement and the balanced scorecard approach.
Question 9
Which of the following statements is true regarding reversing entries in an accounting
cycle?
a) Reversing all previous closing adjustments is a mandatory step in the accounting cycle.
b) Reversing entries should be completed at the end of the next accounting period, after
recording regular transactions of the period.
4
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
When attempting to devise creative solutions to problems, team members initially should
do which of the following?
a) Suspend assumptions and negative feedback.
b) Weigh suggestions based on the speaker's level of authority.
c) Discuss the details of all options presented.
d) Provide documentation to support their positions.
CORRECT ANSWER
CORRECT (a)
Question 2
Which of the following is an example of a detective information security control?
a) Positive pay service.
b) System access.
c) Antivirus software.
d) Encryption.
CORRECT ANSWER
CORRECT (a) a positive pay system is designed to detect fraudulent checks. (B), (C), and
(D) are incorrect; these are preventive controls.
Question 3
1
,Which of the following is most likely to determine the frequency of system backup
schedules?
a) Maximum tolerable downtime.
b) Backup storage options.
c) Budget allocated to IT services.
d) Architecture and configuration of the system.
CORRECT ANSWER
CORRECT (A) the amount of time that an organization can function without its systems
determines the frequency of its backup schedules. (B), (C), and (D) are incorrect; these
are significant considerations for backup operations, but should not determine the
frequency of backups.
Question 4
An analysis showed that reported sales from one of the organization's sales teams had
exceeded planned sales targets. Which of the following management plans did the
internal auditor likely use to conduct the analysis?
a) Operational plan.
b) Tactical plan.
c) Strategic plan.
d) Standing plan.
CORRECT ANSWER
CORRECT (a) The goals outlined in an operational plan are assigned to individuals or
teams and measurable quantitatively, which would be appropriate to assess reported
sales against sales targets. (B) is incorrect; a tactical plan outlines departmental or
divisional goals in mostly qualitative terms. (C) is incorrect; a strategic plan defines the
broad, long-term, organizationwide goals, and would be unlikely to address sales targets
specifically. (D) is incorrect; standing plans provide guidance for many departments to
perform repetitive tasks.
2
,Question 5
Which of the following is a primary objective of the theory of constraints?
a) Full or near capacity in processes.
b) Smooth workflow among processes.
c) Few or no defects.
Lowered inventory levels.
CORRECT ANSWER
CORRECT (B) the theory of constraints aims to achieve smooth work flow among
processes by removing bottlenecks that hinder goals. (A) is incorrect; this may be a
benefit of the theory of constraints, but is not its primary objective. (C) is incorrect; this
is the objective of total quality management. (D) is incorrect; this is the objective of just-
in-time inventory.
Question 6
An internal auditor is investigating a potential fraudulent activity. What is the first test the
auditor should perform on the transaction data under scrutiny?
a) Digital analysis for statistically unlikely occurrences that may indicate system tampering.
b) Verification of the completeness and integrity of the obtained data.
c) Detailed review of the data contents to strategize the best analytical techniques.
d) Calculation of statistical parameters to identify outliers requiring further scrutiny.
CORRECT ANSWER
CORRECT (b) . (A) and (D) are incorrect; these are valid potential tests, but not the first
tests. (C) is incorrect; this is typically the second step.
Question 7
A toy manufacturer wants to determine how many toys should be produced and sold to
achieve a zero net income for the quarter. In addition to the contribution margin, which of
the following is needed to make this computation?
3
, a) The total fixed cost for the quarter.
b) The total variable cost for the quarter.
c) The unit selling price of each toy.
d) The net income for the quarter.
CORRECT ANSWER
CORRECT (a) in order to calculate how many toys need to be produced and sold, we must
know the contribution margin and fixed costs.
Question 8
The balanced scorecard approach differs from traditional performance measurement
approaches because it adds which of the following measures?1.Financial
measures.2.Internal business process measures.3.Client satisfaction
measures.4.Innovation and learning measures.
a) 1 only.
b) 2 and 4 only.
c) 3 and 4 only.
d) 2, 3, and 4 only.
CORRECT ANSWER
CORRECT (d) measures 2, 3, and 4 are all added by balanced scorecard approach. (A), (B),
and (C) are incorrect; measure 1 is not valid, as it applies to both traditional performance
measurement and the balanced scorecard approach.
Question 9
Which of the following statements is true regarding reversing entries in an accounting
cycle?
a) Reversing all previous closing adjustments is a mandatory step in the accounting cycle.
b) Reversing entries should be completed at the end of the next accounting period, after
recording regular transactions of the period.
4
