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

Comprehensive and Detailed In-Depth Explanation:

Data analytics in internal auditing provides quantitative, evidence-based insights, enhancing audit conclusions and decision-making.

Option B (Reduces report preparation time) – While efficiency is a benefit, the main advantage is improved accuracy and factual support.

Option C (Prevents overlooking risks) – While true, data analytics primarily strengthens evidence collection.

Option D (Monitoring controls) – Auditors assess controls, but data analytics enhances findings through data-driven validation.

Thus, Option A is correct, as data analytics strengthens audit conclusions with factual evidence.

Comprehensive and Detailed In-Depth Explanation:

A favorable labor efficiency variance (Option 1) occurs because experienced workers complete tasks more efficiently, reducing time and waste.

An adverse labor rate variance (Option 2) arises because hiring experienced employees increases labor costs compared to budgeted rates.

Option 3 (Adverse labor efficiency variance) is incorrect because skilled workers typically improve efficiency.

Option 4 (Favorable labor rate variance) is incorrect because higher wages increase costs, leading to an adverse variance.

Thus, the correct answer is A (1 and 2 only).

Comprehensive and Detailed In-Depth Explanation:

Data privacy laws, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), emphasize restricting access to personally identifiable information (PII) to only those who require it for business purposes.

Option B (Data backup within 24 hours) is an IT best practice but is not a core requirement of privacy laws.

Option C (Approval for system updates) is a change management policy, unrelated to data privacy.

Option D (Insider trading restrictions) falls under corporate governance and securities regulations, not data privacy laws.

Thus, Option A is correct, as it aligns with legal requirements for protecting sensitive personal data.

Comprehensive and Detailed In-Depth Explanation:

Big data is commonly characterized by the "Three Vs":

Volume: The vast amount of data generated and collected.

Velocity: The speed at which new data is generated and the pace at which data moves.

Variety: The diverse types and sources of data, including structured, semi-structured, and unstructured formats.

These characteristics highlight the challenges and considerations in managing and analyzing big data. Options A, C, and D list attributes that, while relevant in certain contexts, do not encapsulate the core defining features of big data as effectively as option B.

Comprehensive and Detailed In-Depth Explanation:

Two key management principles apply to both hierarchical and open organizational structures:

Delegation of authority, but not responsibility (Principle 1) – Managers can delegate tasks but remain accountable for outcomes.

Authority must accompany responsibility (Principle 3) – Employees must have the authority to act in accordance with their responsibilities to be effective.

Option 2 (Span of control should not exceed seven subordinates) is not a universal rule, as span of control varies by industry and organization.

Option 4 (Employees should be empowered at all levels) is more applicable to open structures but not a core principle of hierarchical organizations.

Thus, the correct answer is A (1 and 3 only).