{"id":24556,"date":"2026-09-29T09:54:03","date_gmt":"2026-09-29T09:54:03","guid":{"rendered":"https:\/\/www.examlabs.com\/certification\/?p=24556"},"modified":"2026-09-29T09:54:03","modified_gmt":"2026-09-29T09:54:03","slug":"iia-iia-cia-part3-practice-test-questions-and-exam-dumps-part14-q261-280","status":"publish","type":"post","link":"https:\/\/www.examlabs.com\/certification\/iia-iia-cia-part3-practice-test-questions-and-exam-dumps-part14-q261-280\/","title":{"rendered":"IIA IIA-CIA-Part3 Practice Test Questions and Exam Dumps Part14 Q261-280"},"content":{"rendered":"

View Full <\/b>IIA IIA-CIA-Part3 Exam Dumps<\/b><\/a> and Practice Test Dumps.<\/b><\/p>\n


\n<\/b>Q261. Which financial measure compares operating cash flow with capital spending needs<\/b><\/p>\n

    \n
  1. <\/b> Current ratio<\/span><\/li>\n
  2. <\/b> Debt ratio<\/span><\/li>\n
  3. <\/b> Free cash flow<\/span><\/li>\n
  4. <\/b> Inventory turnover<\/span><\/li>\n<\/ol>\n

    Correct Answer: 3. Free cash flow<\/b><\/p>\n

    Explanation<\/b><\/p>\n

    Free cash flow represents cash generated by operations after considering required capital expenditures. It helps management assess how much cash remains available for debt repayment dividends expansion or other strategic uses. Current ratio measures short term liquidity using current assets and liabilities. Debt ratio evaluates financial leverage. Inventory turnover measures how quickly inventory is sold or used. Free cash flow is therefore the correct answer because it focuses on cash remaining after supporting ongoing operations and necessary investments. Strong free cash flow can improve financial flexibility although management should also consider future investment needs and unusual operating cash movements.<\/span><\/p>\n

    Q262. Which control helps prevent unauthorized changes to employee salary rates<\/b><\/p>\n

      \n
    1. <\/b> Independent approval<\/span><\/li>\n
    2. <\/b> File compression<\/span><\/li>\n
    3. <\/b> Network monitoring<\/span><\/li>\n
    4. <\/b> Data backup<\/span><\/li>\n<\/ol>\n

      Correct Answer: 1. Independent approval<\/b><\/p>\n

      Explanation<\/b><\/p>\n

      Independent approval requires salary changes to be reviewed and authorized by an appropriate person who is separate from the employee entering the change into payroll records. This reduces the risk of fraudulent or accidental compensation changes. File compression reduces storage requirements. Network monitoring observes technology traffic. Data backup creates recoverable copies of information. Independent approval is therefore the correct answer because salary rate changes can have significant financial impact and should be supported by documented authorization. Restricted payroll access change logs and periodic payroll reviews can provide additional protection over compensation data.<\/span><\/p>\n

      Q263. Which cybersecurity concept assumes no user or device should be trusted automatically<\/b><\/p>\n

        \n
      1. <\/b> Open access<\/span><\/li>\n
      2. <\/b> Shared access<\/span><\/li>\n
      3. <\/b> Perimeter trust<\/span><\/li>\n
      4. <\/b> Zero trust<\/span><\/li>\n<\/ol>\n

        Correct Answer: 4. Zero trust<\/b><\/p>\n

        Explanation<\/b><\/p>\n

        Zero trust is a security approach that requires users devices and connections to be verified before access is granted rather than assuming that activity inside a network is automatically trustworthy. Access decisions can consider identity device condition location and required resources. Open access provides excessive permissions. Shared access weakens accountability. Perimeter trust relies more heavily on network location. Zero trust is therefore the correct answer because it emphasizes continuous verification and least privilege. Organizations adopting this approach commonly combine strong authentication segmentation monitoring and carefully controlled access to important systems and information.<\/span><\/p>\n

        Q264. Which project measure compares earned value with actual cost<\/b><\/p>\n

          \n
        1. <\/b> Schedule variance<\/span><\/li>\n
        2. <\/b> Cost performance index<\/span><\/li>\n
        3. <\/b> Risk score<\/span><\/li>\n
        4. <\/b> Resource utilization<\/span><\/li>\n<\/ol>\n

          Correct Answer: 2. Cost performance index<\/b><\/p>\n

          Explanation<\/b><\/p>\n

          Cost performance index compares earned value with actual project cost and helps determine whether work is being completed efficiently from a cost perspective. A value above one generally indicates favorable cost performance while a value below one may indicate that the project is spending more than expected for completed work. Schedule variance focuses on project timing. Risk score evaluates project exposure. Resource utilization measures how much assigned resources are being used. Cost performance index is therefore the correct answer because it directly relates the value of completed work to the actual amount spent to achieve that work.<\/span><\/p>\n

          Q265. Which economic concept describes benefits gained from specialization and trade<\/b><\/p>\n

            \n
          1. <\/b> Comparative advantage<\/span><\/li>\n
          2. <\/b> Inflation<\/span><\/li>\n
          3. <\/b> Price ceiling<\/span><\/li>\n
          4. <\/b> Deflation<\/span><\/li>\n<\/ol>\n

            Correct Answer: 1. Comparative advantage<\/b><\/p>\n

            Explanation<\/b><\/p>\n

            Comparative advantage explains why individuals organizations or countries may benefit by specializing in activities they can perform at a lower opportunity cost and trading for other goods or services. Inflation refers to broad increases in price levels. A price ceiling limits how high a price may legally rise. Deflation is a sustained decline in general price levels. Comparative advantage is therefore the correct answer because it focuses on relative efficiency rather than absolute capability. The concept helps explain how specialization and exchange can increase total economic output and provide mutual benefits to trading parties.<\/span><\/p>\n

            Q266. Which governance practice best supports objective oversight of management risk taking<\/b><\/p>\n

              \n
            1. <\/b> Informal reporting<\/span><\/li>\n
            2. <\/b> Management self review<\/span><\/li>\n
            3. <\/b> Independent board oversight<\/span><\/li>\n
            4. <\/b> Reduced documentation<\/span><\/li>\n<\/ol>\n

              Correct Answer: 3. Independent board oversight<\/b><\/p>\n

              Explanation<\/b><\/p>\n

              Independent board oversight provides objective challenge of management decisions involving strategy risk and performance. Directors who are sufficiently independent can evaluate whether management actions remain consistent with organizational objectives and risk appetite. Informal reporting may provide incomplete information. Management self review lacks independent challenge. Reduced documentation weakens transparency. Independent board oversight is therefore the correct answer because effective governance requires a body capable of questioning management and protecting broader stakeholder interests. Appropriate expertise timely information and clear authority are also necessary for independent oversight to be effective.<\/span><\/p>\n

              Q267. Which data control helps ensure required fields are not left blank<\/b><\/p>\n

                \n
              1. <\/b> Encryption<\/span><\/li>\n
              2. <\/b> Completeness check<\/span><\/li>\n
              3. <\/b> File backup<\/span><\/li>\n
              4. <\/b> Network routing<\/span><\/li>\n<\/ol>\n

                Correct Answer: 2. Completeness check<\/b><\/p>\n

                Explanation<\/b><\/p>\n

                A completeness check verifies that required data fields contain information before a transaction is accepted for processing. This helps prevent incomplete records from entering systems and causing downstream errors. Encryption protects confidentiality. File backup supports recovery. Network routing directs traffic between networks. Completeness check is therefore the correct answer because it directly addresses missing required information at the point of entry. Organizations can combine completeness checks with format checks reasonableness tests and authorization controls to improve data quality and reduce processing errors within important information systems.<\/span><\/p>\n

                Q268. Which strategic approach reduces operations to restore financial stability<\/b><\/p>\n

                  \n
                1. <\/b> Market penetration<\/span><\/li>\n
                2. <\/b> Product development<\/span><\/li>\n
                3. <\/b> Diversification<\/span><\/li>\n
                4. <\/b> Retrenchment<\/span><\/li>\n<\/ol>\n

                  Correct Answer: 4. Retrenchment<\/b><\/p>\n

                  Explanation<\/b><\/p>\n

                  Retrenchment is a strategy that reduces organizational activities costs assets or business scope in order to improve financial stability or address declining performance. Market penetration seeks greater sales of existing products in current markets. Product development creates new offerings. Diversification expands into new products or markets. Retrenchment is therefore the correct answer because it focuses on contraction rather than growth. Management may close locations reduce product lines sell assets or restructure operations. Internal audit may evaluate whether related decisions and controls appropriately address operational financial and compliance risks created by the restructuring.<\/span><\/p>\n

                  Q269. Which control helps detect suspicious changes to customer master records<\/b><\/p>\n

                    \n
                  1. <\/b> Data encryption<\/span><\/li>\n
                  2. <\/b> Daily backup<\/span><\/li>\n
                  3. <\/b> Change log review<\/span><\/li>\n
                  4. <\/b> File compression<\/span><\/li>\n<\/ol>\n

                    Correct Answer: 3. Change log review<\/b><\/p>\n

                    Explanation<\/b><\/p>\n

                    Change log review examines records of modifications made to customer master data such as addresses credit limits payment terms or other sensitive information. Unusual or unauthorized changes can then be investigated. Data encryption protects confidentiality. Daily backup supports recovery. File compression reduces storage size. Change log review is therefore the correct answer because it provides a detective control over sensitive master data modifications. Organizations can strengthen this control through restricted update access independent approval and periodic comparison of customer changes with supporting documentation and authorized business requests.<\/span><\/p>\n

                    Q270. Which financial ratio measures how quickly an organization pays suppliers<\/b><\/p>\n

                      \n
                    1. <\/b> Payables turnover<\/span><\/li>\n
                    2. <\/b> Current ratio<\/span><\/li>\n
                    3. <\/b> Gross margin<\/span><\/li>\n
                    4. <\/b> Return on equity<\/span><\/li>\n<\/ol>\n

                      Correct Answer: 1. Payables turnover<\/b><\/p>\n

                      Explanation<\/b><\/p>\n

                      Payables turnover measures how frequently an organization pays its suppliers during a period. It generally compares purchases or cost information with average accounts payable. Current ratio measures short term liquidity. Gross margin measures profitability after cost of goods sold. Return on equity measures profit relative to owners equity. Payables turnover is therefore the correct answer because it focuses on the speed at which supplier obligations are settled. Management can use changes in the ratio to evaluate payment practices working capital management supplier relationships and possible liquidity pressure.<\/span><\/p>\n

                      Q271. Which continuity document provides detailed steps for restoring technology after disruption<\/b><\/p>\n

                        \n
                      1. <\/b> Risk register<\/span><\/li>\n
                      2. <\/b> Disaster recovery plan<\/span><\/li>\n
                      3. <\/b> Organization chart<\/span><\/li>\n
                      4. <\/b> Vendor list<\/span><\/li>\n<\/ol>\n

                        Correct Answer: 2. Disaster recovery plan<\/b><\/p>\n

                        Explanation<\/b><\/p>\n

                        A disaster recovery plan provides detailed procedures for restoring information technology systems data networks and related services after a major disruption. A risk register lists identified risks and responses. An organization chart shows reporting relationships. A vendor list identifies approved suppliers. Disaster recovery plan is therefore the correct answer because it focuses specifically on restoring technology capabilities. The plan should identify recovery priorities responsibilities dependencies communication methods and technical procedures. Regular testing is important because a documented plan may not work effectively if systems people or assumptions have changed since it was created.<\/span><\/p>\n

                        Q272. Which audit technique compares expected relationships among financial data<\/b><\/p>\n

                          \n
                        1. <\/b> Inquiry<\/span><\/li>\n
                        2. <\/b> Observation<\/span><\/li>\n
                        3. <\/b> Inspection<\/span><\/li>\n
                        4. <\/b> Analytical procedures<\/span><\/li>\n<\/ol>\n

                          Correct Answer: 4. Analytical procedures<\/b><\/p>\n

                          Explanation<\/b><\/p>\n

                          Analytical procedures evaluate relationships among financial or operational data to identify unusual trends ratios or differences requiring further investigation. Inquiry obtains information through questions. Observation involves watching activities being performed. Inspection examines records documents or physical assets. Analytical procedures is therefore the correct answer because auditors can compare current results with budgets prior periods industry information or expected relationships. Significant unexpected differences do not automatically indicate an error but can help auditors focus additional testing on areas where the reported information may require explanation or supporting evidence.<\/span><\/p>\n

                          Q273. Which management concept focuses on assigning the right number of employees to required roles<\/b><\/p>\n

                            \n
                          1. <\/b> Staffing<\/span><\/li>\n
                          2. <\/b> Planning<\/span><\/li>\n
                          3. <\/b> Controlling<\/span><\/li>\n
                          4. <\/b> Forecasting<\/span><\/li>\n<\/ol>\n

                            Correct Answer: 1. Staffing<\/b><\/p>\n

                            Explanation<\/b><\/p>\n

                            Staffing involves obtaining developing assigning and retaining employees needed to perform organizational activities. It includes determining personnel needs recruiting selecting training and placing employees in appropriate roles. Planning establishes objectives. Controlling compares actual performance with standards. Forecasting estimates future conditions. Staffing is therefore the correct answer because management must ensure that enough qualified people are available to carry out organizational plans. Poor staffing can create workload issues control weaknesses skill gaps and service problems even when other resources and processes are appropriately designed.<\/span><\/p>\n

                            Q274. Which security control prevents users from accessing systems after repeated failed login attempts<\/b><\/p>\n

                              \n
                            1. <\/b> File compression<\/span><\/li>\n
                            2. <\/b> Password history<\/span><\/li>\n
                            3. <\/b> Account lockout<\/span><\/li>\n
                            4. <\/b> Data backup<\/span><\/li>\n<\/ol>\n

                              Correct Answer: 4. Account lockout<\/b><\/p>\n

                              Explanation<\/b><\/p>\n

                              Account lockout temporarily disables access after a defined number of unsuccessful login attempts. This can reduce the effectiveness of automated password guessing and brute force attacks. File compression reduces storage requirements. Password history prevents immediate reuse of prior passwords but does not stop repeated current login attempts. Data backup supports recovery. Account lockout is therefore the correct answer because it directly limits repeated authentication attempts against the same account. Organizations should balance lockout settings with usability and monitoring so attackers cannot easily abuse the control to intentionally lock legitimate users out of systems.<\/span><\/p>\n

                              Q275. Which financial concept represents cash received and paid during normal operations<\/b><\/p>\n

                                \n
                              1. <\/b> Operating cash flow<\/span><\/li>\n
                              2. <\/b> Working capital<\/span><\/li>\n
                              3. <\/b> Retained earnings<\/span><\/li>\n
                              4. <\/b> Gross margin<\/span><\/li>\n<\/ol>\n

                                Correct Answer: 3. Operating cash flow<\/b><\/p>\n

                                Explanation<\/b><\/p>\n

                                Operating cash flow represents cash generated or used by normal business activities such as collections from customers payments to suppliers and operating expenses. Working capital is current assets minus current liabilities. Retained earnings represents accumulated profits kept in the organization. Gross margin measures sales remaining after cost of goods sold. Operating cash flow is therefore the correct answer because it focuses on actual cash movements from core operations rather than accounting profit alone. Strong operating cash flow can improve the organization ability to fund obligations investments and growth without relying heavily on external financing.<\/span><\/p>\n

                                Q276. Which project technique adjusts activity timing to address limited resource availability<\/b><\/p>\n

                                  \n
                                1. <\/b> Risk transfer<\/span><\/li>\n
                                2. <\/b> Resource leveling<\/span><\/li>\n
                                3. <\/b> Market analysis<\/span><\/li>\n
                                4. <\/b> Cost allocation<\/span><\/li>\n<\/ol>\n

                                  Correct Answer: 2. Resource leveling<\/b><\/p>\n

                                  Explanation<\/b><\/p>\n

                                  Resource leveling adjusts project activity start and finish dates when limited resources cannot support all planned tasks simultaneously. Risk transfer shifts selected consequences to another party. Market analysis examines external business conditions. Cost allocation assigns costs to activities products or departments. Resource leveling is therefore the correct answer because it resolves resource conflicts by modifying the project schedule. The technique can extend project duration if required resources are unavailable when originally planned. Project managers should evaluate critical activities carefully so resource adjustments do not create unacceptable delays in overall project completion.<\/span><\/p>\n

                                  Q277. Which control most directly helps prevent unauthorized manual journal entries<\/b><\/p>\n

                                    \n
                                  1. <\/b> File backup<\/span><\/li>\n
                                  2. <\/b> Data compression<\/span><\/li>\n
                                  3. <\/b> Report printing<\/span><\/li>\n
                                  4. <\/b> Restricted posting access<\/span><\/li>\n<\/ol>\n

                                    Correct Answer: 4. Restricted posting access<\/b><\/p>\n

                                    Explanation<\/b><\/p>\n

                                    Restricted posting access limits the ability to create or post manual journal entries to specifically authorized personnel. Manual entries can affect financial results directly and may bypass normal transaction processing controls. File backup supports recovery. Data compression reduces storage size. Report printing does not prevent unauthorized accounting entries. Restricted posting access is therefore the correct answer because it limits who can initiate sensitive financial adjustments. Organizations should also require supporting documentation independent approval change logging and periodic analysis of unusual or high value manual journal entries.<\/span><\/p>\n

                                    Q278. Which market condition exists when one seller dominates the market<\/b><\/p>\n

                                      \n
                                    1. <\/b> Oligopoly<\/span><\/li>\n
                                    2. <\/b> Monopoly<\/span><\/li>\n
                                    3. <\/b> Perfect competition<\/span><\/li>\n
                                    4. <\/b> Monopolistic competition<\/span><\/li>\n<\/ol>\n

                                      Correct Answer: 2. Monopoly<\/b><\/p>\n

                                      Explanation<\/b><\/p>\n

                                      A monopoly exists when one seller dominates a market and customers have limited or no close alternatives. An oligopoly contains a small number of major competitors. Perfect competition includes many sellers offering similar products. Monopolistic competition includes many sellers with differentiated offerings. Monopoly is therefore the correct answer because a single provider has substantial control over market supply and may have significant pricing power. Actual monopoly power can still be limited by regulation potential entry technological change or alternative products that satisfy similar customer needs.<\/span><\/p>\n

                                      Q279. Which audit procedure independently repeats a calculation performed by management<\/b><\/p>\n

                                        \n
                                      1. <\/b> Recalculation<\/span><\/li>\n
                                      2. <\/b> Inquiry<\/span><\/li>\n
                                      3. <\/b> Observation<\/span><\/li>\n
                                      4. <\/b> Confirmation<\/span><\/li>\n<\/ol>\n

                                        Correct Answer: 1. Recalculation<\/b><\/p>\n

                                        Explanation<\/b><\/p>\n

                                        Recalculation involves independently checking the mathematical accuracy of a calculation prepared by management or another employee. Inquiry involves asking questions. Observation involves watching an activity. Confirmation obtains information directly from a third party. Recalculation is therefore the correct answer because the auditor personally verifies the arithmetic or computational accuracy of the amount. It can be used for depreciation interest payroll totals inventory calculations or other areas where mathematical correctness is important. Recalculation provides strong evidence regarding accuracy but does not by itself establish whether the underlying assumptions or source data are appropriate.<\/span><\/p>\n

                                        Q280. Which governance practice best ensures major policies remain current<\/b><\/p>\n

                                          \n
                                        1. <\/b> Informal updates<\/span><\/li>\n
                                        2. <\/b> Limited documentation<\/span><\/li>\n
                                        3. <\/b> Periodic policy review<\/span><\/li>\n
                                        4. <\/b> Shared approval<\/span><\/li>\n<\/ol>\n

                                          Correct Answer: 3. Periodic policy review<\/b><\/p>\n

                                          Explanation<\/b><\/p>\n

                                          Periodic policy review ensures important organizational policies remain aligned with current laws regulations risks technologies business processes and strategic objectives. Informal updates may not provide adequate governance or documentation. Limited documentation makes expectations unclear. Shared approval does not by itself ensure policies are current. Periodic policy review is therefore the correct answer because outdated policies can create control gaps or conflicting guidance. Significant changes should be approved by appropriate authorities communicated to affected employees and supported by updated procedures training and monitoring where necessary.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

                                          View Full IIA IIA-CIA-Part3 Exam Dumps and Practice Test Dumps. Q261. Which financial measure compares operating cash flow with capital spending needs Current ratio Debt ratio Free cash flow Inventory turnover Correct Answer: 3. Free cash flow Explanation Free cash flow represents cash generated by operations after considering required capital expenditures. It helps management assess […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1648,1647],"tags":[],"_links":{"self":[{"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/posts\/24556"}],"collection":[{"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/comments?post=24556"}],"version-history":[{"count":1,"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/posts\/24556\/revisions"}],"predecessor-version":[{"id":24557,"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/posts\/24556\/revisions\/24557"}],"wp:attachment":[{"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/media?parent=24556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/categories?post=24556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.examlabs.com\/certification\/wp-json\/wp\/v2\/tags?post=24556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}