Free IIA IIA-CIA-Part3 Exam Questions

Become IIA Certified with updated IIA-CIA-Part3 exam questions and correct answers

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Total 628 Questions | Updated On: Oct 27, 2025

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Question 1

An organization is planning to outsource its payroll function to an external service provider. The internal auditors advised management of the risks related to outsourcing and the typical controls that should be provided by the external service provider. Which of the following statements is true regarding the internal auditorsâ€™ advice?

A : Independence was compromised by recommending internal controls, as the internal auditors will be testing the same controls in the future.

B : Objectivity was compromised by intervening before the outsourcing procedures and controls were established.

C : The internal auditors should work directly with the external service provider to ensure basic controls are in place and working as intended.

D : The external service provider controls recommended by the internal auditors may be insufficient to protect the organization.

Answer: D

Question 2

Which of the following statements is true regarding a project life cycle?

A : Risk and uncertainty increase over the life of the project.

B : Costs and staffing levels are typically high as the project draws to a close.

C : Costs related to making changes increase as the project approaches completion.

D : The project life cycle corresponds with the life cycle of the product produced by or modified by the project.

Answer: C

Question 3

Which of the following would most likely be found in an organization that uses a decentralized organizational structure?

A : ere is a higher reliance on organizational culture.

B : ere are clear expectations set for employees.

C : ere are electronic monitoring techniques employed.

D : ere is a defined code for employee behavior.

Answer: B

Question 4

Which of the following is the most likely reason an organization may decide to undertake a stock split?

A : keep stock price constant.

B : keep shareholders' equity constant.

C : increase shareholders' equity.

D : enhance the stock liquidity.

Answer: D

Question 5

Which of the following best explains how selling and administrative expenses are recognized under both absorption and variables costing approaches?

A : They are recognized as product costs under absorption costing, and period costs under variable costing.

B : They are recognized as period costs under absorption costing, and product costs under variable costing.

C : They are recognized as period costs under both approaches.

D : They are recognized as product costs under both approaches.

Answer: C

Page: 1 / 126

Total 628 Questions | Updated On: Oct 27, 2025

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