IIA-CIA-Part3 Exam Dumps - Business Knowledge for Internal Auditing

When implementing big data systems, organizations must establish ongoing production monitoring to ensure system performance, efficiency, and reliability.

Why Option A (Key performance indicators) is Correct:

KPIs (Key Performance Indicators) measure the effectiveness and success of big data systems.

KPIs help track system efficiency, data processing speed, accuracy, and resource utilization during production.

Examples of KPIs in big data systems include data ingestion rate, processing time, query performance, system uptime, and error rates.

Why Other Options Are Incorrect:

Option B (Reports of software customization):

Incorrect because software customization reports document system modifications but do not monitor system performance.

Option C (Change and patch management):

Incorrect because change and patch management deals with software updates and security fixes, not ongoing performance monitoring.

Option D (Master data management):

Incorrect because master data management focuses on data governance and consistency, not real-time system performance.

IIA GTAG – "Auditing Big Data Systems": Recommends using KPIs to measure the effectiveness of big data implementation.

COBIT 2019 – APO08 (Manage Performance and Capacity): Emphasizes KPI tracking for IT and data system performance.

NIST Big Data Framework: Highlights the importance of KPIs for monitoring big data system performance.

IIA References:

The CAE must communicate significant risk exposures and control issues to the board. A regulatory noncompliance issue that could result in significant fines qualifies as a high residual risk. Internal audit should not implement corrective actions (management’s responsibility) or recommend disciplinary action. While discussions with management (Option A) are appropriate, the ultimate duty is to escalate the matter to the board (Option C).

Cybersecurity is primarily focused on protecting information assets by preventing unauthorized access, data breaches, cyberattacks, and other security threats. The confidentiality, integrity, and availability (CIA) triad is the foundation of cybersecurity, with access control playing a key role in mitigating risks.

(A) Incorrect – To protect the effective performance of IT general and application controls.

While cybersecurity supports IT controls, its primary goal is information security, not just control performance.

(B) Incorrect – To regulate users' behavior in the web and cloud environment.

Cybersecurity includes user behavior policies, but its primary goal is preventing unauthorized access rather than regulation.

(C) Correct – To prevent unauthorized access to information assets.

The core objective of cybersecurity is to prevent unauthorized access, protecting data from cyber threats.

This aligns with the CIA (Confidentiality, Integrity, Availability) security model.

(D) Incorrect – To secure application of protocols and authorization routines.

Protocols and authorization routines are part of cybersecurity controls, but they are not the primary objective.

IIA’s GTAG (Global Technology Audit Guide) – Cybersecurity Risks and Controls

Defines cybersecurity as the protection of information assets from unauthorized access and threats.

NIST Cybersecurity Framework – Access Control and Information Security

Focuses on preventing unauthorized access to sensitive systems.

COBIT Framework – IT Governance and Security

Emphasizes the protection of data and IT assets through cybersecurity measures.

Analysis of Answer Choices:IIA References and Internal Auditing Standards:

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:

The four-level model for reviewing application controls follows a hierarchy:

Level 1 - Activity: Smallest unit of work within a process.

Level 2 - Subprocess: A collection of related activities that accomplish a part of the process.

Level 3 - Major Process: A significant business function consisting of multiple subprocesses.

Level 4 - Mega Process: The highest level, representing an end-to-end business process, often spanning multiple departments or systems.

Mega processes encompass entire business functions (e.g., order-to-cash or procure-to-pay cycles).

They involve multiple major processes and provide a high-level perspective on business operations.

At level 4, the focus is on strategic alignment of IT application controls with enterprise-wide objectives.

A. Activity – Too detailed and only represents individual tasks.

B. Subprocess – A subset of a major process, not a high-level business function.

C. Major Process – A significant function but not the highest-level view.

IIA’s GTAG on Business Process Controls – Recommends a hierarchical review model to assess IT application controls.

COBIT 2019 (Governance and Management of IT) – Defines mega processes as enterprise-wide workflows.

ISO 27001 Annex A.12 (Operational Security) – Highlights process-based security in IT controls.

Why "Mega Process" is the Correct Answer?Why Not the Other Options?IIA References:✅ Final Answer: D. Mega process.

The CAE may engage external experts to provide specialized knowledge when the internal audit function lacks expertise. However, the CAE and internal audit activity must remain responsible for the engagement and for forming the final opinion.

Options A and B are inappropriate because they outsource the responsibility and independence of internal audit to the consultant. Option D improperly delegates forming the opinion to an external party. The correct approach is collaborating with the consultant while retaining responsibility (Option C).

In organizations, authority types define how power and influence are exercised. Since the technician is prioritizing projects, their authority comes from their specialized knowledge or expertise, making this an example of expert authority.

Why Option D (Expert Authority) is Correct:

Expert authority is based on specialized knowledge, skills, or expertise rather than formal position or hierarchical power.

The technician is trusted to prioritize projects because of their technical knowledge and understanding of project impact.

Expert authority is commonly seen in IT specialists, consultants, and industry professionals who guide decision-making based on expertise.

Why Other Options Are Incorrect:

Option A (Legitimate Authority):

Incorrect because legitimate authority is derived from a formal position or title within an organizational hierarchy (e.g., CEO, manager).

Option B (Coercive Authority):

Incorrect because coercive authority relies on threats, punishment, or force, which is not applicable in this scenario.

Option C (Referent Authority):

Incorrect because referent authority is based on personal influence, charisma, or relationships, rather than expertise.

IIA Practice Guide – "Auditing Organizational Governance": Discusses different types of authority in decision-making.

COSO ERM Framework – "Risk Governance & Decision-Making": Recognizes expert authority as a key factor in risk-based project prioritization.

IIA’s GTAG – "Auditing IT Governance": Highlights the role of expert authority in IT project prioritization and governance.

IIA References:

Business continuity planning (BCP) requires a recovery strategy that minimizes downtime and ensures that critical operations resume within the organization’s desired recovery time objective (RTO).

Since the organization wants to recover within four to seven days, it does not require an expensive real-time recovery site (hot site).

The best strategy is a warm site: a pre-secured location with configurable hardware and data backups that can be activated within the required timeframe.

(A) Incorrect – A recovery strategy whereby a separate site has not yet been determined, but hardware has been reserved for purchase and data backups.

This is a cold site, requiring time for setup and hardware installation.

It does not meet the four to seven-day recovery timeframe efficiently.

(B) Incorrect – A recovery strategy whereby a separate site has been secured and is ready for use, with fully configured hardware and real-time synchronized data.

This describes a hot site, which allows instant failover with real-time synchronization.

While effective, it is costly and unnecessary for a four-to-seven-day recovery target.

(C) Incorrect – A recovery strategy whereby a separate site has been secured and the necessary funds for hardware and data backups have been reserved.

While a site has been secured, the absence of pre-configured hardware would delay recovery, making it an inefficient choice.

(D) Correct – A recovery strategy whereby a separate site has been secured with configurable hardware and data backups.

This describes a warm site, which is the best balance between cost and recovery efficiency.

Configurable hardware and data backups ensure that operations can resume within four to seven days.

IIA’s GTAG (Global Technology Audit Guide) – Business Continuity and IT Disaster Recovery

Recommends warm sites for recovery within a few days.

ISO 22301 – Business Continuity Management Systems

Defines recovery time objectives (RTOs) and site classifications (hot, warm, cold).

COBIT Framework – IT Risk Management

Guides organizations on cost-effective recovery site selection based on risk tolerance.

Analysis of Answer Choices:IIA References and Internal Auditing Standards: