IIA IIA-CIA-Part3 Exam With Confidence Using Practice Dumps

A debenture bond is an unsecured bond that is not backed by specific assets or collateral. Instead, it is backed only by the issuer’s creditworthiness and general reputation. Since the organization in this scenario has a stable rating from international rating agencies and guarantees interest and principal payments, it aligns perfectly with the definition of a debenture bond.

A. A sinking fund bond – A bond that has a special account (sinking fund) where money is set aside to pay off bondholders over time. This is not mentioned in the scenario.

B. A secured bond – This type of bond is backed by specific assets or collateral to reduce investor risk. However, the scenario states that the bond is not backed by assets or collateral, eliminating this choice.

C. A junk bond – These are high-risk, high-yield bonds issued by companies with low credit ratings. The scenario specifies that the company has a stable rating, making this incorrect.

D. A debenture bond (Correct Answer) – Since this bond is unsecured and relies solely on the organization's financial health, it matches the definition of a debenture bond.

IIA IPPF Standard 2120 – Risk Management discusses financial risk management, including bond issuance.

COSO ERM Framework – Financial Risk Management emphasizes evaluating creditworthiness before issuing debt.

IFRS 9 – Financial Instruments provides accounting guidance on different bond types.

Explanation of Each Option:IIA References:

A sound network configuration practice should focus on enhancing security, preventing unauthorized access, and ensuring data integrity. The validation of intrusion prevention controls ensures that the network security measures function as intended and effectively protect data from threats.

(A) Change management practices to ensure operating system patch documentation is retained.

Incorrect: While maintaining patch documentation is important, change management alone does not directly enhance network security.

(B) User role requirements are documented in accordance with appropriate application-level control needs.

Incorrect: This practice improves access control and governance, but it is not a direct network security configuration practice.

(C) Validation of intrusion prevention controls is performed to ensure intended functionality and data integrity. (Correct Answer)

Intrusion Prevention Systems (IPS) help detect and prevent malicious activities in real time.

Ensuring proper validation enhances security and prevents data corruption.

IIA GTAG 15 – Information Security Governance recommends continuous monitoring and validation of security controls.

(D) Interfaces reinforce segregation of duties between operations administration and database development.

Incorrect: Segregation of duties is a good governance practice, but it does not directly relate to network security configuration.

IIA GTAG 15 – Information Security Governance: Recommends validating security controls, including intrusion prevention systems.

IIA Standard 2120 – Risk Management: Encourages proactive security controls to prevent cyber threats.

Analysis of Each Option:IIA References Supporting the Answer:Thus, the correct answer is (C) Validation of intrusion prevention controls, as it directly enhances information security by ensuring real-time threat detection and data integrity.

At the end of an accounting period, certain accounts must be closed to prepare financial statements and reset balances for the next period. The accounts that must be closed are temporary accounts, which include all income statement accounts (revenues, expenses, and gains/losses).

Why Option A (Income statement accounts) is Correct:

Income statement accounts (revenues, expenses, gains, and losses) are temporary accounts that track financial performance for a specific period.

At the end of the period, these accounts are closed to the retained earnings account to reset them to zero for the next period.

Why Other Options Are Incorrect:

Option B (Balance sheet accounts):

Incorrect because balance sheet accounts (assets, liabilities, and equity) are permanent accounts that carry their balances forward to the next period.

Option C (Permanent accounts):

Incorrect because permanent accounts include all balance sheet accounts, which are never closed.

Option D (Real accounts):

Incorrect because real accounts refer to balance sheet accounts (assets, liabilities, and equity), which remain open.

IIA GTAG – "Auditing Financial Close Processes": Discusses the closing of temporary accounts at the period end.

COSO Internal Control – Integrated Framework: Recommends proper financial reporting controls, including account closures.

IFRS & GAAP Accounting Standards: Define temporary and permanent accounts in financial reporting.

IIA References:Thus, the correct answer is A. Income statement accounts.