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IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Sample Questions (Q31-Q36):

NEW QUESTION # 31
Which of the following is true regarding the COSO enterprise risk management framework?

• A. The framework categorizes an organization's objectives to distinct, non overlapping objectives.
• B. The framework integrates with, but is not dependent upon, the corresponding internal control framework.
• C. Control environment is one of the framework's eight components.
• D. The framework facilitates effective risk management, even if objectives have not been established.

Answer: B
NEW QUESTION # 32
Which mindset promotes the most comprehensive risk management strategy?

• A. Increase shareholder value.
• B. Mitigate losses.
• C. Maximize market share.
• D. Improve operational efficiency.

Answer: A
NEW QUESTION # 33
Which of the following statements is correct regarding risk analysis?

• A. The highest risk assessment should always be assigned to the area with the highest probability of occurrence.
• B. The highest risk assessment should always be assigned to the area with the largest potential loss.
• C. The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.
• D. Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

Answer: C
NEW QUESTION # 34
Which of the following would most likely be found in an organization that uses a decentralized organizational structured?

• A. There are clear expectations set for employees
• B. There are electronic monitoring techniques employed
• C. There is a higher reliance on organizational culture
• D. There is a defined code for employee behavior

Answer: A
NEW QUESTION # 35
In terms of international business strategy, which of the following is true regarding a multi-domestic strategy?

• A. It centralizes control with little decision-making authority given to the local level.
• B. It is an effective strategy when large differences exist between countries.
• C. It provides cost advantages, improves coordinated activities, and speeds product development.
• D. It uses the same products in all countries.

Answer: B
NEW QUESTION # 36
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