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Test Number : CIA-III
Test Name : The Certified Internal Auditor Part 3
Vendor Name : Financial
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CIA-III test Format | CIA-III Course Contents | CIA-III Course Outline | CIA-III test Syllabus | CIA-III test Objectives

2019 CIA test Syllabus, Part 3 – Business Knowledge for Internal Auditing
100 questions l 2.0 Hours (120 minutes)

The CIA test 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 test syllabus:

The number of syllabus covered on the Part Three test has been greatly refocused to the core areas that are most critical for internal auditors.
The test syllabus features a new subdomain on data analytics.
The information security portion of the test has been expanded to include additional syllabus 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 test 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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SEARCH YOUR college: Put your faculty through a fiscal stress look at various | CIA-III Real test Questions and real questions

this text about school financial fitness changed into produced in partnership with The Hechinger file, a nonprofit, unbiased news corporation focused on inequality and innovation in schooling. this is a part of the schools in crisis series.

Even before the coronavirus pandemic pressured colleges to shut their campuses, many colleges were already struggling financially. To examine how institutions were placed to reply to the COVID-19 disaster, The Hechinger file created a monetary health Tracker that put the nation’s public institutions and 4-yr nonprofit colleges and universities via a fiscal stress verify. The tracker’s key metrics consist of enrollment, lessons earnings, public funding and endowment fitness.


The monetary health Tracker changed into developed through The Hechinger document using methodology created with the aid of Robert Zemsky, Susan Shaman and Susan Campbell Baldridge, as laid out in their ebook, “The faculty Stress check.” The scores draw on publicly purchasable records supplied with the aid of the national middle for training information, part of the federal branch of schooling, in addition to projections in keeping with that records.

Let their news meet your inbox. The news and reports that concerns, delivered weekday mornings.

The rankings display the estimated amount of monetary stress on an individual establishment after the 2019-20 academic year devoid of trying to quantify the nevertheless-doubtful consequences of the coronavirus disaster. The tracker makes no decision about even if a college is more or less prone to shut or merge with yet another institution, nor does it assess the best of schooling an institution presents or its competitiveness in opposition t different institutions.

Public four-12 months universities and personal, nonprofit four-yr universities are scored in 4 classes, whereas public two-yr faculties are scored in three categories. (schools with fall enrollments of fewer than 100 college students are excluded from the evaluation.)

  • The classes for public four-year universities are: alternate in enrollment of first-time undergraduate students, retention fee, alternate within the typical lessons-and-costs profits per scholar* and alter in state appropriations.*
  • The categories for private, nonprofit four-yr universities are: alternate in enrollment of first-time undergraduate college students, retention rate, alternate in the regular lessons-and-prices profits per student* and change within the ratio of endowment to complete costs (except for any medical institution prices).
  • The categories for two-12 months public schools are: alternate in coming into student enrollment, alternate within the ratio of tuition-and-charges profits to educational charges and change in state and local appropriations.*
  • The values, that are according to publicly attainable data for the 2009-10 to 2016-17 academic years, are then projected three years out, to 2019-20. This projection yields an estimate of essentially the most fresh academic 12 months, which isn't yet available due to colleges’ delayed free up of data.

    To investigate what threshold a faculty have to go to receive a warning signal on the tracker, they use the values of the expense of alternate in most categories. those values are calculated by way of taking the p.c trade throughout an eight-12 months span, from 2009-10 to 2016-17. (The retention values are calculated effectively by using the 2016-17 retention percentage in its place of cost of change.)

    For extra of NBC information' in-depth reporting, obtain the NBC news app

    These rate of change values are used to assess two thresholds — alert and warning — with the aid of taking the 20th and tenth percentile, respectively, for each metric for faculties within the same sector (four-yr publics, 4-12 months privates, two-yr publics).

    an institution then receives a rating for each and every class in accordance with where it falls in assessment to the other faculties in its sector. The ratings latitude from 0 to 3 in each and every class and are determined through no matter if the values for each metric are projected to move the alert or warning thresholds in 2019-20.


    The colleges acquire a ranking of 0 in a class when the projected cost is above the alert threshold; in different phrases, these colleges could be within the suitable 80 percentile for that category. Values that attain the alert threshold earn the college a rating of 1, while values that cross the alert threshold however do not reach the warning threshold earn the college a ranking of 2. Values that attain or go the warning threshold — that means that the school would fall in the bottom 10th percentile within the category — earn the faculty a score of three.

    *These values are inflation adjusted using the Bureau of Labor facts table on inflation. Inflation-adjusted values are calculated by using the nominal dollar cost for September 2016 and adjusting past years’ greenback values to that September’s.

    register for The Hechinger report’s better schooling e-newsletter.

    Pete D'Amato, The Hechinger document

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