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

The annual depreciation is ($320,000 − $40,000) ÷ 4 = $70,000. Annual savings after tax are $150,000 × 70% = $105,000. The depreciation tax shield is $70,000 × 30% = $21,000. Therefore, annual after-tax cash flow is $126,000. The sum of the present value factors is 0.87 + 0.76 + 0.66 + 0.57 = 2.86. Present value of annual cash flows is $126,000 × 2.86 = $360,360. The residual value present value is $40,000 × 0.57 = $22,800. Total present value is $383,160. Less the initial $320,000 investment, net present value is $63,160. Therefore, Option B is correct.

When new technologies are introduced, internal audit’s primary consideration is whether an effective change management system exists and whether it can meet organizational objectives. New technology creates risks related to system stability, security, integration, user access, data integrity, capacity, and regulatory compliance. Emergency change handling, capacity requirements, and changing business risks are important subareas, but they are not the broadest primary consideration. A complete change management system should include request initiation, authorization, risk assessment, testing, approval, migration, segregation of duties, documentation, emergency change control, and post-implementation review. Internal audit should evaluate whether the process is repeatable, risk-based, and aligned with operational objectives. Therefore, Option B is correct.

User-Developed Applications (UDAs) are applications, spreadsheets, databases, or tools created and maintained by end-users rather than IT departments. They provide flexibility but also introduce risks related to security, accuracy, and change management.

Why Option B is Correct:

UDAs lack formal change management controls.

Since they are typically not subject to rigorous testing and documentation, modifications may introduce errors.

Updating or correcting a formula, macro, or script in a UDA may have unintended consequences that go unnoticed, leading to data integrity issues.

Why Other Options Are Incorrect:

Option A (UDAs are less flexible and more difficult to configure than traditional IT applications):

Incorrect. UDAs are more flexible and easier to modify compared to traditional IT applications, which undergo strict change controls.

Option C (UDAs typically are subjected to application development and change management controls):

Incorrect. Most UDAs lack formal governance or IT oversight. They are typically developed by business users with little or no structured IT controls.

Option D (Using UDAs typically enhances the organization’s ability to comply with regulatory factors):

Incorrect. UDAs introduce compliance risks due to lack of security, audit trails, and formal change controls.

IIA GTAG – " Auditing User-Developed Applications " : Discusses risks and controls related to UDAs.

IIA Practice Advisory 2130-1 (Control Risk Self-Assessment): Highlights the importance of internal controls over UDAs.

COSO Internal Control – Integrated Framework: Recommends applying IT general controls (ITGCs) to UDAs.

IIA References:Thus, the correct answer is B. Updating UDAs may lead to various errors resulting from changes or corrections.

Authentication is a key security control that prevents unauthorized users from accessing a smart device’s data or applications. It ensures that only authorized individuals can use the device, reducing risks such as data breaches, identity theft, and cyberattacks.

(A) Anti-malware software.

Incorrect. Anti-malware software protects against malicious programs, but it does not control user access to a device.

(B) Authentication. ✅

Correct. Authentication mechanisms (such as passwords, biometrics, PINs, and two-factor authentication) prevent unauthorized access to a device’s data and applications.

IIA GTAG " Managing and Auditing IT Vulnerabilities " highlights authentication as a primary control for protecting smart devices.

(C) Spyware.

Incorrect. Spyware is a security threat, not a preventive control. It is a type of malicious software that steals data from a device.

(D) Rooting.

Incorrect. Rooting (on Android) or jailbreaking (on iOS) refers to modifying a device to remove security restrictions, which increases security risks rather than preventing unauthorized access.

IIA GTAG – " Managing and Auditing IT Vulnerabilities "

IIA Standard 2120 – Risk Management

NIST Cybersecurity Framework – Identity and Access Management

Analysis of Answer Choices:IIA References:Thus, the correct answer is B, as authentication is the most effective security control for preventing unauthorized access to smart devices.