IIA Updated IIA-CIA-Part3 Exam Questions and Answers by syeda

Slack time is the amount of time an activity can be delayed without delaying the overall project completion date. It gives project managers flexibility to reassign resources and manage schedule risk. A milestone is a significant point in time that marks completion of a deliverable, phase, or major event. Statements 1, 2, and 3 are therefore correct. Statement 4 is incorrect because a milestone normally has zero duration; it does not itself require time to complete, although the work leading to the milestone does. Internal audit may review project controls by evaluating schedules, critical paths, milestones, resource plans, and progress reporting. Therefore, Option C is correct.

Virtualization allows an organization to run multiple virtual servers, desktops, operating systems, or applications on the same physical hardware. This helps maximize use of existing IT infrastructure, reduce hardware purchases, improve resource allocation, and support flexibility. Cloud computing may reduce reliance on internal physical infrastructure, but the question asks how to utilize current physical infrastructure as much as possible. Open-source software may reduce licensing costs but does not inherently improve hardware utilization. Robotic process automation automates business tasks but is not primarily an infrastructure utilization technology. Internal auditors reviewing virtualization should evaluate capacity management, access controls, segregation, patching, backup, disaster recovery, and monitoring. Therefore, Option A is correct.

Consolidated financial statements present the financial position and results of a parent and its subsidiaries as one economic entity. A risk is that poor performance of an individual subsidiary may be concealed within the group’s overall results, especially if stronger entities offset weak results. Option B is generally incorrect because consolidation is designed to reflect entities under common control. Option C is not the main risk because consolidated statements do show the group’s combined assets, liabilities, equity, income, and cash flows. Option D is incorrect because intercompany transactions should be eliminated during consolidation, not included in a misleading way. Internal auditors should consider subsidiary-level performance, consolidation adjustments, eliminations, and disclosure quality. Therefore, Option A is correct.