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IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Sample Questions (Q185-Q190):

NEW QUESTION # 185
When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?

• A. Identify regulatory requirements to be considered.
• B. Review and acquire the external audit service.
• C. Assess the appraisal and actuarial services.
• D. Determine the selection criteria.

Answer: A
NEW QUESTION # 186
Which of the following statements about slack time and milestones are true?
1) Slack time represents the amount of time a task may be delayed without delaying the entire project.
2) A milestone is a moment in time that marks the completion of the project's major deliverables.
3) Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.
4) A milestone requires resource allocation and needs time to be completed.

• A. 1, 2, and 3 only
• B. 2 and 3 only
• C. 1, 2, 3, and 4
• D. 1 and 4 only

Answer: A
NEW QUESTION # 187
Which of the following price adjustment strategies encourages prompt payment?

• A. Functional discounts.
• B. Quantity discounts.
• C. Cash discounts.
• D. Seasonal discounts.

Answer: C
NEW QUESTION # 188
Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?

• A. The auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.
• B. The auditor should explore alternative solutions to address the audit problem, so the audit client has options.
• C. The auditor should focus on the audit client as a person and understand him, rather than just concentrating on the problem.
• D. The auditor should take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.

Answer: C
NEW QUESTION # 189
Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

• A. Mature industries.
• B. Fragmented industries.
• C. Declining industries.
• D. Emerging industries.

Answer: D
NEW QUESTION # 190
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