IIA-CIA-Part3 Exam Questions Tutorials

Big data is characterized by the 4 Vs:

Volume – Large amounts of data.

Velocity – Data is generated rapidly and continuously changing.

Variety – Data comes in multiple formats (structured, unstructured, multimedia, etc.).

Veracity – Ensuring data quality and reliability.

Among these, constant change (velocity) is a defining characteristic of big data.

(A) Incorrect – Big data is being generated slowly due to volume.

Big data is generated at high speed (velocity), not slowly.

(B) Incorrect – Big data must be relevant for the purposes of organizations.

While relevance is important, it is not a defining characteristic of big data.

(C) Incorrect – Big data comes from a single type of format.

Big data consists of multiple formats, including text, images, videos, and unstructured data.

(D) Correct – Big data is always changing.

Big data is dynamic and constantly updated in real-time.

This high velocity and continuous flow of information is a key characteristic.

IIA’s GTAG (Global Technology Audit Guide) – Big Data and Analytics

Describes how big data is constantly evolving.

NIST Big Data Framework – Key Characteristics

Defines volume, velocity, variety, and veracity as essential traits.

COBIT Framework – IT Governance and Data Management

Emphasizes the need for organizations to manage rapidly changing data.

Analysis of Answer Choices:IIA References and Internal Auditing Standards:

Subjective factors are based on judgment or opinion, whereas objective factors rely on measurable data. The quality of staff supervision is a judgment-based assessment, making it subjective.

Options A, C, and D are measurable, quantitative factors and thus objective.

Electronic Data Interchange (EDI) refers to the computer-to-computer exchange of business documents (such as purchase orders, invoices, and shipping notices) in a standard electronic format between business partners.

Correct Answer (D - Use of Electronic Data Interchange)

EDI enables real-time, automated business transactions between companies, reducing errors and increasing efficiency.

The IIA GTAG 8: Audit of Inventory Management highlights EDI as a critical system for supply chain and procurement operations.

Why Other Options Are Incorrect:

Option A (Use of a Central Processing Unit - CPU):

A CPU is a hardware component, not a method for exchanging business documents.

Option B (Use of a Database Management System - DBMS):

A DBMS stores and manages data but does not facilitate external document exchange between trading partners.

Option C (Use of a Local Area Network - LAN):

A LAN connects computers within an organization but does not enable document exchange between separate businesses.

IIA GTAG 8: Audit of Inventory Management – Discusses EDI as an essential tool for automating business transactions.

IIA Practice Guide: Auditing IT Controls – Recommends EDI for secure and efficient document exchange.

Step-by-Step Explanation:IIA References for Validation:Thus, D is the correct answer because EDI is the best system for automated, computer-to-computer business document exchange.