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  3. CIA-III

Financial CIA-III Exam (page: 41)
Financial The Certified Internal Auditor Part 3
Updated on: 17-Feb-2026

Viewing Page 41 of 312
CIA-III PDF 1554 Questions

Which of the following is an example of an efficiency measure?

  1. The rate of absenteeism.
  2. The goal of becoming a leading manufacturer.
  3. The number of insurance claims processed per day.
  4. The goal of increasing market share.

Answer(s): C

Explanation:

The number of insurance claims processed per day is a typical measure used in a balanced scorecard. It relates to the critical success factor of productivity. This factor is based on an input- output efficiency) relationship. An organizational structure is efficient if it facilitates the accomplishment of organizational objectives with minimum resources and fewest unsought consequences. An efficient organizational structure maximizes output for a given amount of input. Thus, an efficiency measure compares input with output. Insurance claims processed per day relates output claims processed) to input a day's work).



Which of the following is not true about the advantages of adopting ISO 9000 standards?

  1. Adoption of ISO 9000 standards may allow the company to sell products in foreign markets.
  2. ISO registration makes customers more comfortable with the supplier's products and services.
  3. ISO 9000 allows companies to understand who internal customers and users are without sharing private information.
  4. ISO registration may help companies discover internal process and quality improvements.

Answer(s): C

Explanation:

Market pressure is usually the main driving force for companies that adopt ISO 9000 standards. However, many of the companies that register uncover internal process and quality improvement as a result. ISO 9000 forces companies to share information, which leads to a better understanding of who internal customers and users are.



Why have many European Union countries not adopted ISO 14000 standards?

  1. Adhering to ISO 14000 standards will not reduce monitoring and inspection by regulatory agencies.
  2. Individual European Union countries' standards are typically more strict than ISO 14000 standards.
  3. Regulators are permitted to use voluntary audits as a basis for punitive action.
  4. ISO 14000 standards will not make it easier to do business across borders.

Answer(s): B

Explanation:

Many European countries already have environmental systems in place, and many individual countries' standards are typically more strict than the ISO 14000 standards.



Which of the following is not required when ISO 9000 standards are adopted?

  1. Organization of a quality management system.
  2. Creation of an internal audit system.
  3. Consistent high quality products.
  4. On-site inspections by a registrar.

Answer(s): C

Explanation:

ISO 9000 is a set of generic standards for establishing and maintaining a quality system within a company. The standards provide no basis for judging the quality of the end product.
The marketplace it will make this determination on its own. The objective of ISO 9000 standards is to ensure consistent quality.



Which of the following statements is not true regarding ISO 9000 standards?

  1. Compliance with the standards is voluntary.
  2. The ISO 9000 standards are revised every 5 years to account for technological and market developments.
  3. The objective of ISO 9000 standards is to ensure high quality products and services.
  4. ISO 9000 is a set of generic standards for establishing and maintaining a quality system within a company.

Answer(s): C

Explanation:

The objective of ISO 9000 standards is to ensure consistent quality even if the quality is poor. The market will determine the quality of the end result.



Viewing Page 41 of 312



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