2024 100% Free IIA-CIA-Part3 Daily Practice Exam With 344 Questions
IIA-CIA-Part3 exam torrent IIA study guide
IIA-CIA-Part3 exam covers a wide range of topics related to business knowledge, including finance, economics, risk management, and strategic management. It is a challenging exam that requires candidates to demonstrate their mastery of complex concepts and their ability to apply them in practical situations. Successful candidates not only possess a deep understanding of business concepts but also possess the analytical and critical thinking skills necessary to excel in the internal auditing profession.
NEW QUESTION # 139
Which of the following most appropriately describes the classification and behavior of shipping costs?
- A. Option D
- B. Option C
- C. Option A
- D. Option B
Answer: D
Explanation:
Using the high-low method, the variable and fixed costs for shipping can be calculated. The difference in cost levels divided by the difference in unit volume equals the variable cost per unit of US $1.40 [ $1 14,000 $93,000) - 70,000 - 55,000)]. The variable cost for 70,000 units is US $98,000 70,000 x $1 40). Subtracting the variable cost from total shipping cost results in the fixed cost of US $16,000 $114,000 - $98,000). A company wants to determine its marketing costs for budgeting purposes. Activity measures and costs incurred for 4 months of the current year are presented in the table below. Advertising is considered to be a discretionary cost. Salespersons are paid monthly salaries plus commissions. The sales force was increased from 20 to 21 individuals during the month of May.
NEW QUESTION # 140
What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for the coming year?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
Explanation:
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup casts. Thus, plugging the data into the EOQ formula results in the following:
Thus, if each lot consists of 1,000 units, five production runs per year are needed to meet the 5,000-unit demand. At this level, setup costs will total US $5,000 5 x $1,000). Carrying costs will also equal US $5,000 10 per unit carrying cost average inventory of 500 units).
Accordingly, total costs are minimized at US $10,000. Jed Ryerson Computer Furniture, Inc. RCF) manufactures a line of office computer chairs. The annual demand for the chairs is estimated to be 5,000 units. The annual cost tic. hold one unit in inventory is US $10 per year, and the cost to initiate a production run is US $1,000. There are no computer chairs on hand, and RCF has scheduled four equal production runs of computer chairs for the coming year, the first of which is to be run immediately. RCF has 250 business days per year, sales occur uniformly throughout the year, and production start-up is within one day. RCF is considering using the following formula for determining the economic order quantity EOQ):
If: A = cast to initiate a production run per purchase order D = annual unit demand K = cost of carrying one unit per year
NEW QUESTION # 141
Advantages of life cycle methodologies are:
- A. Reduced application development time to achieve a functioning system.
- B. Lower overall development costs when requirements change frequently.
- C. Enhanced management and control of the development process.
- D. Ability to give users a functioning system quickly.
Answer: C
Explanation:
The systems development life cycle approach is the most common methodology applied to the development of large, highly structured application systems. The life cycle approach is based on the idea that an information system has a finite life span that is limited by the changing needs of the organization. This cycle is analytically divisible into stages. A new system life cycle begins when the inadequacy of the current system leads to a decision to develop a new or improved system. This method is a structured process for controlling the creative activity required to devise, develop, and implement an information system. The process is described in varying terms by different writers, but the nature and sequence of the steps are essentially the same. Life cycle methodologies provide enhanced management and control of the development process because they provide structure for a creative process by dividing it into manageable steps and specifying what must be produced in each phase.
NEW QUESTION # 142
An investor has acquired an organization that has a dominant position in a mature. slew-growth Industry and consistently creates positive financial income.
Which of the following terms would the investor most likely label this investment in her portfolio?
- A. A cash cow
- B. A question mark
- C. A star
- D. A dog
Answer: A
NEW QUESTION # 143
Net domestic product is composed of the total market value of all?
- A. Final goods and services produced in the economy in 1 year.
- B. Goods and services produced in the economy in 1 year minus the capital consumption allowance.
- C. Final goods and services produced in the economy in 1 year minus the capital consumption allowance.
- D. Goods and services produced in the economy in 1 year.
Answer: C
Explanation:
Net domestic product is the market value of all final goods and services produced within the boundaries of a country within 1 year minus the capital consumption allowance.
NEW QUESTION # 144
Which of the following is a cybersecurity monitoring activity intended to deter disruptive codes from being installed on an organizations systems?
- A. Wireless access controls
- B. Penetration tests
- C. Malware defense.
- D. Boundary defense
Answer: B
NEW QUESTION # 145
Which of the following bring-your-own-device (BYOD) practices is likely to increase the risk of Infringement on local regulations, such as copyright or privacy laws?
- A. JoIIbreaking a locked smart device
- B. Applying a weak password for access to a mobile device.
- C. Updating operating software in a haphazard manner,
- D. Not installing anti-malware software
Answer: A
NEW QUESTION # 146
An internal auditor for a large automotive parts retailer wishes to perform a risk analysis and wants to use an appropriate statistical tool to help identify stores that would be out of line compared to the majority of stores. The most appropriate statistical tool to use is
- A. Cross-sectional regression analysis.
- B. Cross tabulations with chi-square analysis of significance.
- C. Time series multiple regression analysis to identify changes in individual stores overtime.
- D. Linear time series analysis.
Answer: A
Explanation:
Time series data pertain to a given entity over a number of prior time periods. Cross sectional data, however, pertain to different entities for a given time period or at a given time.
Thus, cross-sectional regression analysis is the most appropriate statistical tool because it compares attributes of all stores' operating statistics at one moment in time.
NEW QUESTION # 147
The system requiring the most extensive backup and recovery procedures is a(n):
- A. File-oriented system for billing clients.
- B. Batch system for payroll processing.
- C. Database system for online order entry.
- D. Indexed sequential access method file system for fixed asset accounting.
Answer: C
Explanation:
Database systems require a more elaborate backup procedure than other systems. A database system for online entry would require almost continuous backup if data loss is to be minimized as transactions are processed on a continuous basis, and without tangible source documentation. Backup procedures that could be employed for online order entry include dual logging and rollback and recovery.
NEW QUESTION # 148
As of week 8, the Gantt chart shows that the project is:
- A. Behind schedule.
- B. Complete.
- C. Ahead of schedule.
- D. On schedule.
Answer: C
Explanation:
Assuming that 1) each of the bars represents the expected time necessary to complete an activity and 2) the shaded regions represent the portions completed, activity A has been completed as scheduled and activities B and C are ahead of schedule. Consequently, the project is ahead of schedule.
NEW QUESTION # 149
In a review of an EDI application using a third-party service provider, the auditor should:
I. Ensure encryption keys meet ISO standards
II. Determine whether an independent review of the service provider's operation has been conducted.
III. Verify that only public-switched data networks are used by the service provider
IV.
Verify that the service provider's contracts include necessary clauses, such as the right to audit
- A. I and ll.
- B. II and III.
- C. I and IV.
- D. II and IV.
Answer: D
Explanation:
An auditor should review trading partner agreements and contracts with third-party service providers. These documents should contain necessary clauses and appropriately limit liabilities. Moreover, legal counsel should have reviewed the agreements or contracts. An auditor should also determine whether the third- party service provider's operations and controls have been independently reviewed e.g., by public accountants).
Topic 4, Volume D
NEW QUESTION # 150
Preferred stock has [List A] like common stock and [List B] payment like bonds.
List A
List B
A maturity date
A fixed periodic
No maturity date
No fixed periodic
A maturity date
No fixed periodic
No maturity date
A fixed periodic
Answer:
Explanation:
pending
A. B. C. D.
NEW QUESTION # 151
Refer to the exhibit.
The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?
- A. 22 days.
- B. 51 days.
- C. 27 days.
- D. 21 days.
Answer: C
NEW QUESTION # 152
If certain goods owned by an entity were not recorded as a purchase and were not counted in ending inventory, in error, then:
- A. There will be no effect on cost of goods sold or profit for the period.
- B. Cost of goods sold for the period will be understated.
- C. Profit for the period will be understated.
- D. Cost of goods sold for the period will be overstated.
Answer: A
Explanation:
The effects of the errors on cost of goods sold are offsetting. Purchases, which increase cost of goods sold, and ending inventory, which decreases cost of goods sold, are understated by the same amount. Neither cost of goods sold nor profit is affected.
NEW QUESTION # 153
The four categories of costs associated with product quality costs are:
- A. Warranty, product liability, training, and appraisal.
- B. External failure, internal failure, prevention, and carrying.
- C. External failure, internal failure, training, and appraisal.
- D. External failure, internal failure, prevention, and appraisal.
Answer: D
Explanation:
The following are the four categories of quality costs: prevention, appraisal, internal failure, and external failure lost opportunity). Costs of prevention include attempts to avoid defective output, including employee training, review of equipment design, preventive maintenance, and evaluation of suppliers. Appraisal costs include quality control programs, inspection, and testing. Internal failure costs are incurred when detection of defective products occurs before shipment, including scrap, rework, tooling changes, and downtime.
External failure costs are incurred after the product has been shipped, including the costs associated with warranties, product liability, and customer ill will.
NEW QUESTION # 154
Which of the following is the best reason for considering the acquisition of a nondomestic organization?
- A. Opportunity to influence local government policy.
- B. Relatively fast market entry.
- C. Improved cash flow of the acquiring organization.
- D. Increased diversity of corporate culture.
Answer: B
NEW QUESTION # 155
Which of the following is the primary benefit of including end users in the system development process?
- A. Improved integrity of programs and processing.
- B. Enhanced ongoing maintenance of the system.
- C. Reduced need for unexpected software changes.
- D. Greater accuracy of the testing phase.
Answer: D
NEW QUESTION # 156
One of the primary advantages of budgeting is that it:
- A. Is continually adapted to fit changing circumstances.
- B. Bases the profit plan on estimates.
- C. Does not take the place of management and administration.
- D. Requires departmental managers to make plans in conjunction with the plans of other interdependent departments.
Answer: D
Explanation:
A budget is a quantitative model of a plan of action developed by management. A budget functions as an aid to planning, coordination, and control. Thus, a budget helps management to allocate resources efficiently and to ensure that subunit goals are congruent with those of other subunits and of the organization.
NEW QUESTION # 157
The activity of trading futures with the objective of reducing or controlling risk is called:
- A. Factoring.
- B. Insuring.
- C. Hedging.
- D. Short-selling.
Answer: C
Explanation:
Hedging is the use of offsetting commitments to minimize the effect of adverse future price movements. Thus, a financial manager may limit many risk exposures by trading in futures markets.
NEW QUESTION # 158
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IIA-CIA-Part3 exam is an essential step for internal auditors looking to obtain the CIA designation. IIA-CIA-Part3 exam covers a broad range of business topics and requires a high level of knowledge and understanding. Passing the exam demonstrates a commitment to professionalism and a dedication to the field of internal auditing.
IIA-CIA-Part3 exam, also known as Business Knowledge for Internal Auditing, is one of the three exams required to obtain the Certified Internal Auditor (CIA) certification. IIA-CIA-Part3 exam is designed to test candidates' understanding of business principles and concepts that are crucial for internal audit professionals. The IIA-CIA-Part3 exam covers six domains including Business Acumen, Information Security, Information Technology, Financial Management, Global Business Environment, and Governance and Business Ethics.
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