CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
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 (a)
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 (a) a positive pay system is designed to detect fraudulent checks. (B), (C), and (D) are incorrect;
these are preventive controls.
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 (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.
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 (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
,CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
address sales targets specifically. (D) is incorrect; standing plans provide guidance for many
departments to perform repetitive tasks.
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 (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.
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 (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.
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?
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 (a) in order to calculate how many toys need to be produced and sold, we must know the
contribution margin and fixed costs.
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.
,CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
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.
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.
c) Reversing entries are identical to the adjusting entries made in the previous period.
d) Reversing entries are the exact opposite of the adjustments made in the previous period.
CORRECT (d) in order to reverse prior adjustments, reversing entries must be their exact opposite. (A) is
incorrect; this is an optional step.
Which of the following is a limitation of the remote wipe for a smart device?
a) Encrypted data cannot be locked to prevent further access.
b) Default settings cannot be restored on the device.
c) All data cannot be completely removed from the device.
d) Mobile device management software is required for successful remote wipe.
(C) is correct; remote wipes cannot remove all data from a smart device. (A) and (B) are incorrect; these
can indeed be accomplished through remote wipes. (D) is incorrect; mobile device management software
can be deployed for remote wipes, but it is not the only viable option.
Which of the following situations would encourage an industrial organization to invest in additional
capacity?
a) High market share and high industry competitiveness.
b) Low market share and low industry competitiveness.
c) High market share and low industry competitiveness.
d) Low market share and high industry competitiveness.
CORRECT (c) this stimulates an organization invest or build in order to maintain advantages and stifle
potential competitors.
According to IIA guidance, which of the following is the correct order to conduct a business
impact analysis (BIA) for the potential loss of an organization's network services?
1.Identify resources and partners to provide required recovery services.
2.Identify the business processes supporting the network functionality.
3.Obtain approval of the BIA from the operating managers relative to their areas of responsibility.
4.Identify the business impact if the network services cannot be performed.
a) 1, 2, 3, 4
b) 2, 1, 4, 3
, CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
c) 2, 4, 1, 3
d) 4, 2, 1, 3
CORRECT (c)
Which of the following would be a control objective for an electronic commerce system?1.Effective
customer authentication process.2.Effective use and control of digital signatures.3.Documented
special security standards that override common security standards.4.Documented evidence of
an effective system of internal control.
a) 2 and 4 only.
b) 3 and 4 only.
c) 1, 2, and 3 only.
d) 1, 2, and 4 only.
CORRECT (d) control objectives 1, 2, and 4 are acceptable for e-commerce auditing. (A), (B), and (C) are
incorrect; control objective 3 is not valid, as special security standards should enhance existing, common
security standards, rather than override them.
In the current year, a merchandising organization had an inventory turnover ratio of 3.0, which
was less than the industry average of 6.5. Which of the following offers the most likely
explanation for this difference?
a) The organization has understated the amount of inventory in its financial statements.
b) The organization has overstated the cost of purchases in its financial statements.
c) The organization is holding obsolete or damaged items in its inventory.
d) The organization experienced an unexpectedly large increase in sales shortly before year end.
CORRECT (c) when obsolete or damaged items are included in inventory, the organization's inventory
turnover ratio will be lower. (A), (B), and (D) are incorrect; these would result in a higher inventory ratio.
The internal auditor for a manufacturing organization was reviewing the year-end financial
statements and noted that the final inventory count did not include goods on consignment to a
local distributor. Which of the following statements is true regarding this oversight?
a) Cost of goods sold would be overstated.
b) Net income would be overstated.
c) Cost of goods sold would be understated.
d) There would be no effect on net income.
CORRECT (a) cost of goods sold = beginning inventory + purchases - ending inventory. If end of year
inventory is understated, then the cost of goods sold is overstated.
Which of the following statements is most accurate with respect to various forms, elements, and
characteristics of business contracts?
a) A contract is a tool used by both suppliers and customers, the model and complexity of which
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 (a)
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 (a) a positive pay system is designed to detect fraudulent checks. (B), (C), and (D) are incorrect;
these are preventive controls.
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 (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.
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 (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
,CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
address sales targets specifically. (D) is incorrect; standing plans provide guidance for many
departments to perform repetitive tasks.
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 (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.
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 (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.
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?
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 (a) in order to calculate how many toys need to be produced and sold, we must know the
contribution margin and fixed costs.
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.
,CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
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.
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.
c) Reversing entries are identical to the adjusting entries made in the previous period.
d) Reversing entries are the exact opposite of the adjustments made in the previous period.
CORRECT (d) in order to reverse prior adjustments, reversing entries must be their exact opposite. (A) is
incorrect; this is an optional step.
Which of the following is a limitation of the remote wipe for a smart device?
a) Encrypted data cannot be locked to prevent further access.
b) Default settings cannot be restored on the device.
c) All data cannot be completely removed from the device.
d) Mobile device management software is required for successful remote wipe.
(C) is correct; remote wipes cannot remove all data from a smart device. (A) and (B) are incorrect; these
can indeed be accomplished through remote wipes. (D) is incorrect; mobile device management software
can be deployed for remote wipes, but it is not the only viable option.
Which of the following situations would encourage an industrial organization to invest in additional
capacity?
a) High market share and high industry competitiveness.
b) Low market share and low industry competitiveness.
c) High market share and low industry competitiveness.
d) Low market share and high industry competitiveness.
CORRECT (c) this stimulates an organization invest or build in order to maintain advantages and stifle
potential competitors.
According to IIA guidance, which of the following is the correct order to conduct a business
impact analysis (BIA) for the potential loss of an organization's network services?
1.Identify resources and partners to provide required recovery services.
2.Identify the business processes supporting the network functionality.
3.Obtain approval of the BIA from the operating managers relative to their areas of responsibility.
4.Identify the business impact if the network services cannot be performed.
a) 1, 2, 3, 4
b) 2, 1, 4, 3
, CIA PART 3 PRACTICE.FINAL EXAM TEST 2026\2027.
c) 2, 4, 1, 3
d) 4, 2, 1, 3
CORRECT (c)
Which of the following would be a control objective for an electronic commerce system?1.Effective
customer authentication process.2.Effective use and control of digital signatures.3.Documented
special security standards that override common security standards.4.Documented evidence of
an effective system of internal control.
a) 2 and 4 only.
b) 3 and 4 only.
c) 1, 2, and 3 only.
d) 1, 2, and 4 only.
CORRECT (d) control objectives 1, 2, and 4 are acceptable for e-commerce auditing. (A), (B), and (C) are
incorrect; control objective 3 is not valid, as special security standards should enhance existing, common
security standards, rather than override them.
In the current year, a merchandising organization had an inventory turnover ratio of 3.0, which
was less than the industry average of 6.5. Which of the following offers the most likely
explanation for this difference?
a) The organization has understated the amount of inventory in its financial statements.
b) The organization has overstated the cost of purchases in its financial statements.
c) The organization is holding obsolete or damaged items in its inventory.
d) The organization experienced an unexpectedly large increase in sales shortly before year end.
CORRECT (c) when obsolete or damaged items are included in inventory, the organization's inventory
turnover ratio will be lower. (A), (B), and (D) are incorrect; these would result in a higher inventory ratio.
The internal auditor for a manufacturing organization was reviewing the year-end financial
statements and noted that the final inventory count did not include goods on consignment to a
local distributor. Which of the following statements is true regarding this oversight?
a) Cost of goods sold would be overstated.
b) Net income would be overstated.
c) Cost of goods sold would be understated.
d) There would be no effect on net income.
CORRECT (a) cost of goods sold = beginning inventory + purchases - ending inventory. If end of year
inventory is understated, then the cost of goods sold is overstated.
Which of the following statements is most accurate with respect to various forms, elements, and
characteristics of business contracts?
a) A contract is a tool used by both suppliers and customers, the model and complexity of which
