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Latest MCQs 2025 Updated IIA Certified Internal Auditor Part 3 (Business Knowledge for Internal Auditing CIA Part 3) exam Questions

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CIA-III exam Format | CIA-III Course Contents | CIA-III Course Outline | CIA-III exam Syllabus | CIA-III exam Objectives

2019 CIA exam Syllabus, Part 3 – Business Knowledge for Internal Auditing


100 questions l 2.0 Hours (120 minutes)





The CIA exam Part 3 includes four domains focused on business acumen, information security, information technology, and financial management. Part 3 is designed to test candidates knowledge, skills, and abilities particularly as they relate to these core business concepts.​





Domains Collapse All


I. Business Acumen (35%)


​ ​ ​Cognitive Level


​​1. Organizational Objectives, Behavior, and Performance


A​ ​Describe the strategic planning process and key activities (objective setting, globalization and competitive considerations, alignment to the organization's mission and values, etc.) Basic


​B ​Examine common performance measures (financial, operational, qualitative vs. quantitative, productivity, quality, efficiency, effectiveness, etc.) Proficient


​C ​​Explain organizational behavior (individuals in organizations, groups, and how organizations behave, etc.) and different performance management techniques (traits, organizational politics, motivation, job design, rewards, work schedules, etc.) ​Basic


​D ​​Describe managements effectiveness to lead, mentor, guide people, build organizational commitment, and demonstrate entrepreneurial ability ​Basic


2. Organizational Structure and Business Processes


A ​Appraise the risk and control implications of different organizational configuration structures (centralized vs. decentralized, flat structure vs. traditional, etc.) Basic​


​B ​Examine the risk and control implications of common business processes (human resources, procurement, product development, sales, marketing, logistics, management of outsourced processes, etc.) Proficient


​C ​Identify project management techniques (project plan and scope, time/team/resources/cost management, change management, etc.) ​Basic


​D Recognize the various forms and elements of contracts (formality, consideration, unilateral, bilateral, etc.) Basic


​3. Data Analytics


​A ​Describe data analytics, data types, data governance, and the value of using data analytics in internal auditing ​Basic


​B ​Explain the data analytics process (define questions, obtain relevant data, clean/normalize data, analyze data, communicate results) ​Basic


​C Recognize the application of data analytics methods in internal auditing (anomaly detection, diagnostic analysis, predictive analysis, network analysis, text analysis, etc.) ​Basic


II. Information Security (25%)


​ ​ ​Cognitive Level


​​1. Information Security


A​ ​Differentiate types of common physical security controls (cards, keys, biometrics, etc.) Basic


​B ​Differentiate the various forms of user authentication and authorization controls (password, two-level authentication, biometrics, digital signatures, etc.) and identify potential risks Basic


​C ​​Explain the purpose and use of various information security controls (encryption, firewalls, antivirus, etc.) ​Basic


D​ ​Recognize data privacy laws and their potential impact on data security policies and practices Basic​


​E ​​Recognize emerging technology practices and their impact on security (bring your own device [BYOD], smart devices, internet of things [IoT], etc.) Basic​


​F ​Recognize existing and emerging cybersecurity risks (hacking, piracy, tampering, ransomware attacks, phishing attacks, etc.) ​Basic


G​ ​​Describe cybersecurity and information security-related policies ​Basic


III. Information Technology (20%)


​ ​ ​Cognitive Level


​​1. Application and System Software


A​ Recognize core activities in the systems development lifecycle and delivery (requirements definition, design, developing, testing, debugging, deployment, maintenance, etc.) and the importance of change controls throughout the process Basic


​B ​Explain basic database terms (data, database, record, object, field, schema, etc.) and internet terms (HTML, HTTP, URL, domain name, browser, click-through, electronic data interchange [EDI], cookies, etc.) Basic


​C ​​Identify key characteristics of software systems (customer relationship management [CRM] systems; enterprise resource planning [ERP] systems; and governance, risk, and compliance [GRC] systems; etc.) ​Basic


2. IT Infrastructure and IT Control Frameworks


A ​Explain basic IT infrastructure and network concepts (server, mainframe, client-server configuration, gateways, routers, LAN, WAN, VPN, etc.) and identify potential risks Basic​


​B Define the operational roles of a network administrator, database administrator, and help desk Basic​​


​C Recognize the purpose and applications of IT control frameworks (COBIT, ISO 27000, ITIL, etc.) and basic IT controls ​Basic


​3. Disaster Recovery


​A Explain disaster recovery planning site concepts (hot, warm, cold, etc.) ​Basic


​B Explain the purpose of systems and data backup ​Basic


​C ​Explain the purpose of systems and data recovery procedures ​Basic


IV. Financial Management (20%)


​ ​ ​Cognitive Level


​​1. Financial Accounting and Finance


A​ ​Identify concepts and underlying principles of financial accounting (types of financial statements and terminologies such as bonds, leases, pensions, intangible assets, research and development, etc.) Basic


​B ​Recognize advanced and emerging financial accounting concepts (consolidation, investments, fair value, partnerships, foreign currency transactions, etc.) Basic


C​ ​​Interpret financial analysis (horizontal and vertical analysis and ratios related to activity, profitability, liquidity, leverage, etc.) Proficient​


D​ ​​Describe revenue cycle, current asset management activities and accounting, and supply chain management (including inventory valuation and accounts payable) Basic​


​E ​​Describe capital budgeting, capital structure, basic taxation, and transfer pricing Basic​


2. Managerial Accounting


A ​Explain general concepts of managerial accounting (cost-volume-profit analysis, budgeting, expense allocation, cost- benefit analysis, etc.) Basic​


​B ​Differentiate costing systems (absorption, variable, fixed, activity-based, standard, etc.) Basic​​


​C ​Distinguish various costs (relevant and irrelevant costs, incremental costs, etc.) and their use in decision making ​Basic

Additional noteworthy elements related to the revised CIA Part Three exam syllabus:





The number of subjects covered on the Part Three exam has been greatly refocused to the core areas that are most critical for internal auditors.


The exam syllabus features a new subdomain on data analytics.


The information security portion of the exam has been expanded to include additional subjects such as cybersecurity risks and emerging technology practices.


The largest domain is “Business Acumen,” which makes up 35% of the exam.


A portion of the exam requires candidates to demonstrate a basic comprehension of concepts; another portion requires candidates to demonstrate proficiency in their knowledge, skills, and abilities.

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