[2026] Verified IIA-CIA-Part3 Dumps Q&As – 1 Year Free & Quickly Updates [Q424-Q440]

admin • September 7, 2026

[2026] Verified IIA-CIA-Part3 Dumps Q&As – 1 Year Free & Quickly Updates [Q424-Q440]

Rate this post

[2026] Verified IIA-CIA-Part3 Dumps Q&As – 1 Year Free & Quickly Updates

Latest 2026 Realistic Verified IIA-CIA-Part3 Dumps – 100% Free IIA-CIA-Part3 Exam Dumps

To be eligible for the IIA-CIA-Part3 certification exam, candidates must have completed the IIA-CIA-Part1 (Essentials of Internal Auditing) and IIA-CIA-Part2 (Practice of Internal Auditing) exams. Additionally, candidates must have a minimum of 24 months of internal auditing experience or equivalent. The IIA also offers exemptions for those who have completed certain academic programs or hold certain professional certifications.

IIA-CIA-Part3 exam is a computer-based exam that consists of 100 multiple-choice questions. Candidates have three hours to complete the exam, and the passing score is 600 out of 800. IIA-CIA-Part3 exam is available in several languages, including English, Spanish, French, German, and Chinese. Candidates can take the exam at any Pearson VUE testing center worldwide.

For more info visit:

IIA CIA Part 2 Exam Reference

QUESTION 424
Which of the following price adjustment strategies encourages prompt payment?

Cash discounts.

Quantity discounts.

Functional discounts.

Seasonal discounts.

Explanation/Reference:

QUESTION 425
Which one of the following would not be included as a reason for the company to use EFT with the EDI system?

To take advantage of the time lag associated with negotiable instruments.

To allow the company to negotiate discounts with EDI vendors based upon prompt payment.

To improve its cash management program.

To reduce input time and input errors.

The float period is the time lag between transmittal of a regular check a negotiable instrument and its clearance through regular banking channels. Float is eliminated by EFT.
A multinational company has an agreement with a value-added network VAN) that provides the encoding and communications transfer for the company’s electronic data interchange EDI) and electronic funds transfer EFT) transactions. Before transfer of data to the VAN, the company performs online preprocessing of the transactions. The internal auditor is responsible for assessing preprocessing controls. In addition, the agreement between the company and the VAN states that the internal auditor is allowed to examine and report on the controls in place at the VAN on an annual basis. The contract specifies that access to the VAN can occur on a surprise basis during the second or third quarter of the company’s fiscal year. This period was chosen so it would not interfere with processing during the VAN’s peak transaction periods. This provision was not reviewed with internal auditing. The annual audit plan approved by the board of directors specifies that a full audit would be done during the current year.

QUESTION 426
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization’s cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

Electronic funds transfer.

Knowledge-based systems.

Biometrics.

Standardized graphical user interface.

QUESTION 427
An entity uses the following formula in determining its optimal level of cash.

This formula is a modification of the economic order quantity EOQ formula used for inventory management. Assume that the set of selling marketable securities is US $10 per transaction and the interest rate on marketable securities is 6% per year. The entity estimates that it will make cash payments of US $12.000 over a one-month period. What is the average cash balance rounded to the nearest dollar)?

US $1,000

US $2,000

US $3,464

US $6,928

The BOO for inventory is a function of ordering cost per order, inventory demand, and carrying cost. In the cash model, the fixed cost per sale of securities is equivalent to the ordering cost, the demand for cash is similar to the demand for inventory, and the interest rate is effectively the cost of carrying a dollar of cash for the period. Substituting in the formula yields an optimal cash balance of about US $6.928. Thus, the average cash balance is US $3,464 $6,928 – 2).

QUESTION 428
If the construction company uses the percentage-of-completion [cost-to-cost basis) method of revenue recognition, in Year 1 the amount of revenue it will recognize on the long-term contract will be:

US $3,000,000

US $4,705,882

US $5,000,000

US $6,000,000

Under the cost-to-cost approach to determining the stage of completion of the contract, the stage of completion equals contract costs incurred to date divided by the most recent estimate of total contract costs Hence, the revenue to be recognized in the first year is US $4,705,882 [$10,000,000 $4,000,000 $8,500,000.)]. amount equals costs incurred plus recognized profit. On January 1, Year 1, a construction company signed a contract with a property management firm involving the construction of a large urban office tower. The total price of constructing the tower was agreed to be US $10 million with US $2 million being paid on the date of the agreement. Construction began immediately upon the signing of the contract and was expected to take 3 years to complete. The original estimate of total construction costs was US $8 million. During the year ended De _ _tuber 31, Year 1, US $4 million of construction costs were incurred, and engineering estimates indicated that the office tower was 30% complete at year-end. At year-end, the revised estimate of total construction costs was US. million and the property management firm had been billed a further US $4 million, although only US $1 million of that amount had been collected by year-end.

QUESTION 429
Which of the following is an example of a physical control?

Providing fire detection and suppression equipment.

Establishing a physical security policy and promoting it throughout the organization.

Performing business continuity and disaster recovery planning.

Keeping an offsite backup of the organization’s critical data.

QUESTION 430
Plantation should treat Lease A as a(n):

Finance lease with an initial asset amount of US $101.400.

Operating lease charging US $14,200 in rental expense and US $800 in executor costs to annual operations.

Operating lease charging the present value of the yearly rental expense to annual operations.

Operating lease charging US $15.000 in rental expense and US $800 in executor costs to annual operations.

Lease a is an operating lease with a $ 15,000 annual rental expense with annual executor costs (e.g.) maintenance, insurance, and taxes of US$800 to be paid by the lessee, an
operating lease does not transfer the risks and rewards of ownership to the lease a is nothing more than a rent arrangement. Circumstances in which the risks and rewards of ownership are normally deemed to be transferred include the following the lease transfers title to the lessee, the lease has a bargain purchase option, the lease term is for the major part of the useful life of the leased asset, the present value of the minimum lease payments is at least substantially all of the asset’s fair value, or the asset is usable only by the lessee without major modification. On January1, plantation partners is planning to enter as the lessee into the two lease agreements described in the opposite column each lease is noncancelable, and plantation does not receive title to either leased property during or at the end of the lease term all payments required under these agreements are due on January 1 each year.

QUESTION 431
The process of scenario planning begins with which of the following steps?

Determining the trends that will influence key factors in the organization’s environment.

Selecting the issue or decision that will impact how the organization conducts future business.

Selecting leading indicators to alert the organization of future developments.

Identifying how customers, suppliers, competitors, employees, and other stakeholders will react.

QUESTION 432
According to IIA guidance, which of the following statements is true regarding penetration testing?

Testing should not be announced to anyone within the organization to solicit a real-life response.

Testing should take place during heavy operational time periods to test system resilience.

Testing should be wide in scope and primarily address detective management controls for identifying potential attacks.

Testing should address the preventive controls and management’s response.

Penetration testing is a security practice used to identify vulnerabilities in an organization’s information systems by simulating cyberattacks. It is an essential component of IT risk management and internal auditing under The Institute of Internal Auditors (IIA) standards, particularly in the context of IT governance, cybersecurity risk management, and control assurance.
Focus on Preventive Controls:
Penetration testing evaluates how well preventive controls (e.g., firewalls, encryption, authentication mechanisms) work against potential cyberattacks.
According to the IIA Global Technology Audit Guide (GTAG) 11: Developing an IT Audit Plan, testing should emphasize preventive security measures to minimize risks.
Management’s Response Assessment:
The effectiveness of an organization’s incident response plan is also evaluated.
Management’s reaction to simulated cyber threats ensures that detection and response mechanisms are functional and aligned with IIA Standard 2120 – Risk Management and IIA GTAG 1: Information Security Governance.
A). Testing should not be announced to anyone within the organization to solicit a real-life response.
(Incorrect)
Reason: While unannounced tests (e.g., red team exercises) can provide real-world insights, penetration testing should be coordinated with IT and security personnel.
IIA GTAG 11 emphasizes structured and ethical testing approaches, ensuring that necessary stakeholders are informed to prevent operational disruptions.
B). Testing should take place during heavy operational time periods to test system resilience. (Incorrect) Reason: While resilience testing is important, penetration testing is typically performed in controlled conditions to avoid disrupting business operations.
IIA Standard 2130 – Control supports minimizing business risks during testing.
C). Testing should be wide in scope and primarily address detective management controls for identifying potential attacks. (Incorrect) Reason: While detection controls (e.g., intrusion detection systems) are important, penetration testing focuses primarily on preventive controls.
IIA GTAG 1 and IIA GTAG 11 stress proactive security strategies over purely detective measures.
IIA Global Technology Audit Guide (GTAG) 11: Developing an IT Audit Plan – Covers IT security testing, including penetration testing.
IIA GTAG 1: Information Security Governance – Emphasizes the role of security assessments.
IIA Standard 2120 – Risk Management – Highlights the importance of testing preventive security measures.
IIA Standard 2130 – Control – Discusses ensuring operational effectiveness during testing.
Explanation of the Correct Answer (D):Analysis of Incorrect Answers:IIA References:Thus, D is the most accurate choice as per IIA guidance.

QUESTION 433
A bank is developing a computer system to help evaluate loan applications. The information systems IS staff interview the bank’s mortgage underwriters to extract their knowledge and decision processes for input into the computer system. The completed system should be able to process information the same as do the underwriters and make final recommendations regarding loan decisions. This approach is called:

An expert system.

A neural network.

An intelligent agent.

Fuzzy logic.

An expert system is a knowledge-intensive computer program that captures the expertise of a human in limited domains of knowledge.

QUESTION 434
Which of the following is an example of a physical control designed to prevent security breaches?

Preventing database administrators from initiating program changes

Blocking technicians from getting into the network room.

Restricting system programmers’ access to database facilities

Using encryption for data transmitted over the public internet

Physical controls are security measures that prevent unauthorized physical access to critical assets, such as IT infrastructure, sensitive documents, or restricted areas.
* (A) Preventing database administrators from initiating program changes:
* This is a logical (IT) control rather than a physical control. Logical controls manage access permissions and prevent unauthorized software changes.
* (B) Blocking technicians from getting into the network room (Correct Answer):
* This is a physical control because it prevents unauthorized personnel from physically accessing critical IT infrastructure, such as servers and networking devices.
* Unauthorized access to a network room could lead to data breaches, hardware manipulation, or cyberattacks.
* (C) Restricting system programmers’ access to database facilities:
* This is an access control measure, which can be either logical (permissions, role-based access) or physical. However, it primarily refers to IT access controls rather than a physical security measure.
* (D) Using encryption for data transmitted over the public internet:
* This is a technical control, not a physical one. Encryption protects data but does not prevent physical breaches.
* IIA GTAG 17: Auditing IT Security – Emphasizes the role of physical security in protecting IT infrastructure.
* COBIT Framework – DSS05 (Manage Security Services) – Highlights physical access restrictions as a key security measure.
* ISO/IEC 27001: Information Security Management System – Identifies physical security as a fundamental control for IT risk management.
Analysis of Each Option:IIA References:Conclusion:Since physical security controls prevent unauthorized physical access, option (B) is the correct answer.

QUESTION 435
Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

Logical access controls monitor application usage and generate audit trails.

The development process is designed to prevent, detect and correct errors that may occur

A record is maintained to track the process of data from input, to output, to storage

Business users’ requirements are documented, and their achievement is monitored

QUESTION 436
An internal auditor is assigned to perform data analytics. Which of the following is the next step the auditor should undertake after she has ascertained the value expected from the review?

Normalize the data,

Obtain the data

Identify the risks.Analyze the data.

When performing data analytics, the process typically follows a structured approach. Once the internal auditor has determined the expected value from the review, the next logical step is to obtain the data. Without acquiring the necessary datasets, further actions such as normalization, risk identification, and analysis cannot be effectively carried out.
* (A) Incorrect – Normalize the data.
* Normalization is a preprocessing step that occurs after data has been obtained.
* Before normalizing, the auditor must first access and collect relevant data sources.
* (B) Correct – Obtain the data.
* Data acquisition is a critical step in data analytics.
* The auditor must gather relevant and reliable data from internal and external sources before proceeding with further steps such as cleansing, normalization, and analysis.
* (C) Incorrect – Identify the risks.
* Risk identification is an essential part of the audit process but typically comes after obtaining and reviewing data patterns.
* Without data, identifying risks would be speculative rather than evidence-based.
* (D) Incorrect – Analyze the data.
* Data analysis comes after obtaining, cleaning, and structuring the data.
* Jumping straight to analysis without ensuring data quality would lead to inaccurate conclusions.
* IIA’s GTAG (Global Technology Audit Guide) – Data Analytics
* Recommends obtaining data as the initial step in data-driven audits.
* IIA’s Global Internal Audit Standards – Use of Data Analytics in Auditing
* Stresses the importance of data acquisition before proceeding with normalization and analysis.
* COSO’s ERM Framework – Data-Driven Decision Making
* Highlights the importance of securing data for risk identification and mitigation.
Analysis of Answer Choices:IIA References and Internal Auditing Standards:

QUESTION 437
A company with many branch stores has decided to use its best-performing store as a benchmark organization for the purpose of analyzing the accuracy and reliability of branch store financial reporting.
Which one of the following is the most likely measure to be included in a financial benchmark?

High turnover of employees.

High level of employee participation in setting budgets.

High amount of bad debt write-offs.

High number of suppliers.

Internal benchmarking is the application of best practices in one part of the organization (e.g., a high-performing branch store) to its other parts (other branches). This process requires, among other things, use of quantitative and qualitative measures. A key indicator for financial performance measurement is the amount of bad debt write-offs. A high level of bad debt write-offs could indicate fraud, which would compromise the accuracy and reliability of financial reports. Bad debt write-offs may result from recording fictitious sales.

QUESTION 438
Which of the following statements is true regarding user-developed applications (UDAs)?

UDAs are less flexible and more difficult to configure than traditional IT applications.

Updating UDAs may lead to various errors resulting from changes or corrections.

UDAs typically are subjected to application development and change management controls.

Using UDAs typically enhances the organization’s ability to comply with regulatory factors.

QUESTION 439
Which of the following best demonstrates an organization’s ability to recover from a disaster?

Hot site

Cold site

Redundant data center

Regular testing of the disaster plan

QUESTION 440
According to Maslow’s hierarchy of needs theory, which of the following best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

Esteem by colleagues.

Self-fulfillment

Series of belonging in the organization

Job security

Understanding Maslow’s Hierarchy of Needs
Maslow’s theory categorizes human needs into five levels:
Physiological Needs (Basic survival: food, water, shelter)
Safety Needs (Job security, stability, financial security)
Social Needs (Belonging, relationships, team interactions)
Esteem Needs (Recognition, achievement, respect)
Self-Actualization (Self-Fulfillment) – Reaching one’s full potential, professional growth, and personal development Why Option B is Correct?
Offering an assignment for professional growth and advancement supports self-actualization (self-fulfillment).
This aligns with Maslow’s highest level, where individuals seek to maximize their potential and achieve personal excellence.
IIA Standard 1100 – Independence and Objectivity emphasizes the importance of professional growth in auditing and management roles.
Why Other Options Are Incorrect?
Option A (Esteem by colleagues):
Professional growth may increase esteem, but the focus here is on self-fulfillment, not external recognition.
Option C (Sense of belonging in the organization):
Belonging is a lower-level need (social level), while professional growth aligns with self-actualization.
Option D (Job security):
Job security falls under safety needs, which is a lower-tier concern.
Professional development aligns with self-actualization, the highest level in Maslow’s hierarchy, which focuses on maximizing potential.
IIA Standard 1100 supports professional growth as part of career advancement in internal auditing.
Final Justification:IIA References:
Maslow’s Hierarchy of Needs (Self-Actualization Level)
IPPF Standard 1100 – Independence and Objectivity

Loading …