IIA-CIA-Part3 Exam Questions Tutorials

Understanding the Call Center Performance Issue:

The key performance indicators (KPIs) show a positive trend, meaning the call center appears to be performing well.

However, customer complaints are increasing, indicating that the KPIs are not accurately reflecting service quality.

This suggests that employees may be prioritizing call quantity over call quality, likely due to pressure to meet call quotas.

Why De-Emphasizing Call Quotas is the Best Solution:

Encourages Quality Over Speed: Reducing the emphasis on call volume allows agents to spend more time resolving customer issues effectively.

Improves Customer Satisfaction: Agents can provide more thorough assistance, reducing repeat calls and complaints.

Aligns KPIs with Service Quality: Shifting focus from quantity-based KPIs to quality-based KPIs ensures performance measurements reflect actual customer experience.

Why Other Options Are Incorrect:

A. Review the call center script used by customer service agents to interact with callers, and update the script if necessary – Incorrect.

While updating scripts may help, it does not address the root issue of employees rushing through calls to meet quotas.

C. Retrain call center staff on area processes and common technical issues that they will likely be asked to resolve – Incorrect.

Training is useful, but if agents are pressured to complete calls quickly, training alone will not resolve the issue.

D. Increase the incentive for call center employees to complete calls quickly and raise the number of calls completed daily – Incorrect.

This would worsen the issue by further incentivizing speed over customer satisfaction, leading to more complaints.

IIA’s Perspective on Performance Metrics and Customer Service Quality:

IIA Standard 2120 – Risk Management requires organizations to ensure that performance metrics align with actual business objectives.

IIA GTAG (Global Technology Audit Guide) on Performance Measurement recommends balancing quantitative KPIs (e.g., call volume) with qualitative KPIs (e.g., customer satisfaction scores).

COSO Internal Control Framework supports adjusting performance incentives to ensure alignment with business objectives.

IIA References:

IIA Standard 2120 – Risk Management & KPI Alignment

IIA GTAG – Performance Metrics in Customer Service

COSO Internal Control Framework – Effective KPI Design

Thus, the correct and verified answer is B. De-emphasize the importance of call center employees completing a certain number of calls per hour.

Understanding the "Something You Have" Concept:

Access control methods are classified into three main authentication factors:

Something You Know – Passwords, PINs, security questions.

Something You Have – Physical devices like keycards, smart cards, or security tokens.

Something You Are – Biometrics such as fingerprints, retina scans, or voice recognition.

Why a Card-Key Scanner is the Correct Answer:

A card-key scanner verifies access using a physical card, which aligns with the "something you have" authentication factor.

Users must possess the key card to gain entry, making it a classic example of physical token-based security.

Why Other Options Are Incorrect:

A. A retina characteristics reader – Incorrect, as retina scans fall under "something you are" (biometrics), not "something you have".

B. A PIN code reader – Incorrect, as PIN codes are "something you know", not a physical possession.

D. A fingerprint scanner – Incorrect, as fingerprints are biometric ("something you are"), not a physical object.

IIA’s Perspective on Physical Security Controls:

IIA Standard 2110 – Governance emphasizes the importance of using multi-factor authentication to enhance security.

IIA GTAG (Global Technology Audit Guide) on Access Control recommends the use of physical security devices like card-key scanners to prevent unauthorized access.

ISO 27001 Information Security Standard identifies "something you have" authentication methods as critical components of access control.

IIA References:

IIA Standard 2110 – Governance & IT Security

IIA GTAG – Physical Security & Access Controls

ISO 27001 Information Security Standard – Multi-Factor Authentication

Thus, the correct and verified answer is C. A card-key scanner.

The internal rate of return (IRR) is a measure used to evaluate the profitability of an investment. The project is considered acceptable if its IRR is greater than or equal to the required rate of return (RRR), which is the minimum return an organization expects from an investment.

Correct Answer (C - Compare to the Required Rate of Return)

The required rate of return (RRR) represents the minimum acceptable return for the project.

If IRR ≥ RRR, the project is acceptable. If IRR < RRR, the project is rejected.

The IIA Practice Guide: Auditing Capital Investments suggests comparing IRR to the RRR to ensure financial feasibility.

Why Other Options Are Incorrect:

Option A (Compare to the annual cost of capital):

The cost of capital (WACC - Weighted Average Cost of Capital) is an important factor, but RRR is the direct benchmark for IRR comparison.

Option B (Compare to the annual interest rate):

Interest rates do not determine project feasibility—they only affect financing costs.

Option D (Compare to the net present value - NPV):

NPV and IRR are related, but they serve different purposes.

IRR is compared against RRR, while NPV measures absolute profitability in dollar terms.

IIA Practice Guide: Auditing Capital Investments – Discusses IRR, RRR, and investment decision-making.

IIA GTAG 3: Business Case Development – Explains how financial metrics like IRR and RRR are used in decision-making.

Step-by-Step Explanation:IIA References for Validation:Thus, C is the correct answer because IRR should be compared to the required rate of return to determine project acceptability.

Understanding the Accounting for Office Supplies:

The organization maintains an account for office supplies on hand, which represents unused office supplies at any given time.

The expense recorded during the year represents the cost of office supplies purchased.

At year-end, the adjusting entry is made to reflect the actual amount of supplies on hand and adjust the supplies expense accordingly.

Formula to Determine the Supplies Used:

Supplies Used=Beginning Balance+Purchases−Ending Balance\text{Supplies Used} = \text{Beginning Balance} + \text{Purchases} - \text{Ending Balance}Supplies Used=Beginning Balance+Purchases−Ending Balance

Plugging in the given values:

Supplies Used=9,000+45,000−11,500=42,500\text{Supplies Used} = 9,000 + 45,000 - 11,500 = 42,500Supplies Used=9,000+45,000−11,500=42,500

This amount ($42,500) represents the actual office supplies used and should be recorded as an expense.

The adjusting entry would include:

A debit to Office Supplies on Hand for $42,500

A credit to Office Supplies Expense for $42,500

Why Other Options Are Incorrect:

A. A debit to office supplies on hand for $2,500 – Incorrect, as this figure does not represent supplies used or purchased.

B. A debit to office supplies on hand for $11,500 – Incorrect, as this is the ending balance and not the adjustment amount.

C. A debit to office supplies on hand for $20,500 – Incorrect, as this does not align with the formula for calculating used supplies.

IIA’s Perspective on Financial Reporting and Adjusting Entries:

IIA Standard 1220 – Due Professional Care emphasizes accurate financial reporting and proper adjustments for year-end entries.

GAAP Accounting Principles require accrual-based adjustments to ensure that expenses are recognized in the period they are incurred.

COSO Internal Control Framework supports proper inventory and expense adjustments to avoid misstated financials.

IIA References:

IIA Standard 1220 – Due Professional Care (Financial Reporting Accuracy)

GAAP Accounting Standards – Adjusting Entries for Supplies and Inventory

COSO Internal Control – Accurate Expense Recognition

Thus, the correct and verified answer is D. A debit to office supplies on hand for $42,500.