2025 Latest IIA-CIA-Part3: New Business Knowledge for Internal Auditing Practice Questions

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To be eligible to take the IIA-CIA-Part3 exam, candidates must have completed the first two exams in the CIA series or have a qualifying exemption. Candidates must also have at least two years of internal audit experience or equivalent education or experience in a related field. IIA-CIA-Part3 Exam is computer-based and consists of 100 multiple-choice questions. Candidates have 2.5 hours to complete the exam.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q154-Q159):

NEW QUESTION # 154
As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized data?

A. The auditor eliminated duplicate information.
B. The auditor organized data to minimize useless information.
C. The auditor made data usable for a specific purpose by ensuring that anomalies were identified and corrected.
D. The auditor ensured data fields were consistent and that data could be used for a specific purpose.

Answer: C

NEW QUESTION # 155
For an entity with a defined postemployment benefit plan, the fair value of plan assets at the beginning of the year was US $500,000. No unrecognized net cumulative actuarial gain or loss existed. On the last day of the fiscal year the fair value of plan assets was US $620.000. Benefits paid equaled US $100,000 and the entity made US $120.000 in contributions. The discount rate was 10% and the expected long-term rate of return on plan assets was 12%. The actual return on plan assets was:

A. US $60,000
B. US $75,000
C. US $50,000
D. US 100,000

Answer: D

Explanation:
The actual return on plan assets is equal to the difference between the fair value of plan assets at the beginning and the end of the year adjusted for contributions and benefits paid. Thus, the actual return is US $100,000.

NEW QUESTION # 156
Setting the introductory price of a new product relatively high is:

A. Price skimming.
B. Market-based pricing.
C. Penetration pricing.
D. Pricing by intermediaries.

Answer: A

Explanation:
Price (market) skimming is the practice of setting an introductory price relatively high to attract buyers who are not concerned about price and to recover research and development costs rather quickly. The opposite approach is to use penetration pricing, which involves setting a relatively low price to gain deep market penetration quickly.

NEW QUESTION # 157
Which of the following is a result of Implementing on e-commerce system, which relies heavily on electronic data interchange and electronic funds transfer, for purchasing and biting?

A. Higher inventory balances
B. Higher cash flow and treasury balances.
C. Higher accounts receivable.
D. Higher accounts payable

Answer: C

NEW QUESTION # 158
Based on test results, an IT auditor concluded that the organization would suffer unacceptable loss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

A. Requested backup tapes were not returned from the offsite vendor in a timely manner.
B. Returned backup tapes from the offsite vendor contained empty spaces.
C. Critical systems have been backed up more frequently than required.
D. Critical system backup tapes are taken off site less frequently than required

Answer: A

NEW QUESTION # 159
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