[Nov-2024] Latest IIA IIA-CIA-Part3 exam dumps and online Test Engine
IIA IIA-CIA-Part3: Selling Certified Internal Products and Solutions
IIA-CIA-Part3 exam is intended for individuals who have experience in internal auditing, risk management, or financial management. It is also suitable for professionals who are seeking to advance their careers in the field of internal auditing. IIA-CIA-Part3 exam is designed to test the knowledge and skills of candidates in various areas of business, including accounting, finance, economics, management, and information technology.
IIA-CIA-Part3 exam is a certification exam that is designed to test the knowledge and skills of individuals who are interested in pursuing a career in internal auditing. IIA-CIA-Part3 exam is part of the Certified Internal Auditor (CIA) program offered by the Institute of Internal Auditors (IIA) and is focused on the business knowledge required for internal auditing.
NEW QUESTION # 166
Which of the following situations best applies to an organization that uses a project, rather than a process, to accomplish its business activities?
- A. A manufacturing organization acquires component parts from a contracted vendor.
- B. A commercial construction company is hired to build a warehouse.
- C. A city department sets up a new firefighter training program.
- D. A clothing company designs, makes, and sells a new item.
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION # 167
A seller's price is below an appropriate measure of costs. Moreover, the seller has a reasonable prospect of recovering the resulting loss in the future through higher prices or a greater market share. Accordingly, the seller has engaged in:
- A. Predatory pricing.
- B. Price discrimination.
- C. Dumping.
- D. Collusive pricing.
Answer: A
Explanation:
Predatory pricing is intentionally pricing below cost to eliminate competition and reduce supply. Many statutes prohibit the practice. Pricing is predatory when two conditions are met: (1) the seller's price is below an appropriate measure of its costs, and (2) it has a reasonable prospect of recovering the resulting loss through higher prices or greater market share.
NEW QUESTION # 168
Which of the following descriptions of the internal control system are indicators that risks are managed effectively?
1. Existing controls promote compliance with applicable laws and regulations.
2. The control environment is designed to address all identified risks to the organization.
3. Key controls for significant risks to the organization remain consistent over time.
4. Monitoring systems are in place to alert management to unexpected events.
- A. 1 and 3.
- B. 2 and 4.
- C. 2 and 3.
- D. 1 and 4.
Answer: D
Explanation:
Explanation
NEW QUESTION # 169
All else being equal, an entity with a higher dividend-payout ratio will have a <List A> debt-to-assets ratio and a <List B} current ratio.
- A. Option C
- B. Option D
- C. Option A
- D. Option B
Answer: D
Explanation:
An entity with a higher dividend-payout ratio is distributing more of its earnings as dividends to ordinary shareholders. It will have less cash and less total assets than a comparable entity with a lower payout ratio. The debt-to-assets ratio will be higher because total assets are lower, and the current ratio will be lower because cash is lower.
An entity's financial statements for the current year are presented below:
NEW QUESTION # 170
Which of the following statements accurately describes the responsibility of the internal audit activity (IAA) regarding IT governance?
1) The IAA does not have any responsibility because IT governance is the responsibility of the board and senior management of the organization.
2) The IAA must assess whether the IT governance of the organization supports the organization's strategies and objectives.
3) The IAA may assess whether the IT governance of the organization supports the organization's strategies and objectives.
4) The IAA may accept requests from management to perform advisory services regarding how the IT governance of the organization supports the organization's TMS strategies and objectives.
- A. 3 and 4
- B. 4 only
- C. 2 and 4
- D. 1 only
Answer: C
NEW QUESTION # 171
Which of me following responsibilities would ordinary fall under the help desk function of an organization?
- A. Physical hosting of mainframes and distributed servers
- B. Management of infrastructure services including network management
- C. End-to-end security architecture design
- D. Maintenance service items such as production support
Answer: A
NEW QUESTION # 172
When a new application is being created for widespread use in a large organization, the principal liaison between the IT function and the rest of an organization is normally a(n):
- A. Maintenance programmer.
- B. Systems analyst
- C. Application programmer.
- D. End user.
Answer: B
Explanation:
Systems analysts are specifically qualified to analyze and design computer information systems. They survey the existing system, analyze the organization's information requirements, and design new systems to meet those needs. Systems analysts communicate with the entire organization and act as a liaison between the organization and the IT function.
NEW QUESTION # 173
Which of the following application controls verifies the accuracy of transaction results in a system?
- A. Processing controls
- B. Output controls
- C. Input controls
- D. Integrity controls
Answer: A
NEW QUESTION # 174
An internal auditor found the following information while reviewing the monthly financial siatements for a wholesaler of safety
The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?
- A. Activity-based costing method
- B. Average cost method
- C. First-in, first-out (FIFO) method
- D. Specific identification method
Answer: B
NEW QUESTION # 175
A bank is developing a computer system to help evaluate loan applications. The information systems IS staff interview the bank's mortgage underwriters to extract their knowledge and decision processes for input into the computer system. The completed system should be able to process information the same as do the underwriters and make final recommendations regarding loan decisions. This approach is called:
- A. An expert system.
- B. An intelligent agent.
- C. Fuzzy logic.
- D. A neural network.
Answer: A
Explanation:
An expert system is a knowledge-intensive computer program that captures the expertise of a human in limited domains of knowledge.
NEW QUESTION # 176
According to IIA guidance, which of the following corporate social responsibility (CSR) activities is appropriate for the internal audit activity to perform?
- A. Determine the optimal amount of resources for the organization to invest in CSR.
- B. Integrate CSR activities into the organization's decision-making process.
- C. Align CSR program objectives with the organization's strategic plan.
- D. Determine whether the organization has an appropriate policy governing its CSR activities.
Answer: D
NEW QUESTION # 177
An entity has excess capacity in production-related property, plant, and equipment If in a given year these assets are being used to only 80% of capacity and the sales level in that year is US $2 million, the full capacity sales level is:
- A. U S $10,000,000
- B. US $2,500,000
- C. U S $1,600,000
- D. US $2,000,000
Answer: B
Explanation:
Full capacity sales equals actual sales divided by the percentage of capacity at which PPEs were operated. Thus, full capacity sales equals US $2,500,000 $2,000,000 - 80%).
NEW QUESTION # 178
An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud. Which of the following controls would be least effective in detecting any potential fraudulent activity?
- A. Monthly management review of all contractor activity.
- B. Exception report identifying payment anomalies.
- C. Periodic account reconciliation of contractor charges.
- D. Documented policy and procedures.
Answer: D
NEW QUESTION # 179
What technique could be used to prevent the input of alphabetic characters into an all numeric identification number?
- A. A check digit.
- B. A format check.
- C. A record count
- D. A sequence check.
Answer: B
Explanation:
With a format check, the computer checks the characteristics of the character content length, or sign of the individual data fields. Field checks, sign checks, and range checks are examples of format checks.
NEW QUESTION # 180
The enterprise uses straight-line depreciation for financial reporting purposes, but uses accelerated depreciation for tax purposes. Which of the following account balances would be lower in the financial statements used for tax purposes than it would be in the general purpose financial statements?
- A. Accumulated depreciation.
- B. Retained earnings.
- C. Gross property, plant, and equipment.
- D. Cash.
Answer: B
Explanation:
Because the tax basis uses an accelerated method, depreciation expense and accumulated depreciation will be greater. Moreover, taxable income will be lower than financial net income. Consequently tax-basis retained earnings will be less than that in the general purpose financial statements. Copper Co. had the pre-closing trial balance at December 31 shown below. Additional information: The balance of opening inventory was US $140,000. The long-term debt pays interest at a rate of 10% per annum, payable every 12 months. The debt was issued on July 1 of the current year and originally had 5 years to maturity. The assets classified as property, plant, and equipment have a 10-year estimated useful life and were 1 year old at the start of the current year Straight-line depreciation is used.
NEW QUESTION # 181
The chart displays the:
- A. Median of each computer complaint.
- B. Relative frequency of each computer complaint.
- C. Absolute frequency of each computer complaint.
- D. Arithmetic mean of each computer complaint.
Answer: C
Explanation:
This Pareto diagram depicts the frequencies of complaints in absolute terms. It displays the actual number of each type of complaint. The chart does not display arithmetic means, relative frequencies, or medians of each type of complaint.
NEW QUESTION # 182
A widely used approach that managers use to recognize uncertainty about individual items and to obtain an immediate financial estimate of the consequences of possible prediction errors is:
- A. Regression analysis.
- B. Learning curve analysis.
- C. Sensitivity analysis.
- D. Expected value analysis.
Answer: C
Explanation:
Sensitivity analysis determines how a result varies with changes in a given variable or parameter in a mathematical decision model. For example, in a present value analysis, a manager might first calculate the net present value or internal rate of return assuming that a new asset has a 10-year life. The NPV or IRR can then be recalculated using a 5-year life to determine how sensitive the result is to the change in the assumption. An international not for- profit organization finances medical research. The majority of its revenue and support comes from fund-raising activities, investments, and specific grants from an initial sponsoring corporation. The organization has been in operation over 15 years and has a small internal audit department. The organization has just finished a major fundraising drive that raised US $500 million for the current fiscal period. The following are selected data from recent financial statements US dollar figures in millions):
NEW QUESTION # 183
An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
Using the information collected, the organization should focus on:
- A. The total number of personal computer complaints that occurred.
- B. The number of computer complaints associated with the lack of user knowledge and hardware problems.
- C. The number of computer complaints associated with CD-ROM problems and new software usage.
- D. The cost to alleviate all computer complaints.
Answer: B
Explanation:
Complaints based on lack of user knowledge and hardware problems are by far the most frequent according to this chart. Consequently, the company should devote its resources primarily to these issues.
NEW QUESTION # 184
When using PERT Program Evaluation Review Technique), the expected time for an activity when given an optimistic time A), a pessimistic time B), and a most likely time m) is calculated by which one of the following formulas?
- A. a + 4m +b) =6
- B. a + b) =2
- C. 4 abm) =6
- D. b - a) =2
Answer: A
Explanation:
PERT was developed to aid managers in controlling large, complex projects. PERT analysis includes probabilistic estimates of activity completion times. Three time estimates are made: Optimistic, most likely, and pessimistic. The time estimates for an activity are assumed to approximate a beta probability distribution. PERT approximates the mean of the beta distribution by dividing the sum of the optimistic time, the pessimistic time, and four times the most likely time by six.
NEW QUESTION # 185
The time that car 3 will have to wait to be serviced:
- A. 3 minutes.
- B. 5+ minutes.
- C. 0-2 minutes.
- D. 4 minutes.
Answer: D
Explanation:
Car 1 is at the attached window and will require minutes to service. Car 2 must wait for car 1 to be serviced minutes the queue + minutes to be serviced = 6 minutes). Car arrived at the attached window minutes after cars 1 and . It must wait 1 minute for car 1 to be serviced and minutes for car to be serviced, a waiting time of 4 minutes. A bank has two drive-in lanes to serve customers: one attached to the bank itself and one on an island. One teller serves bath stations. The bank is interested in determining the average waiting times of customers and has developed a model based on random numbers. The two key factors are the time between successive car arrivals and the time customers wait in line. Assume that the analysis begins with cars just arriving at bath service windows. bath requiring 3 minutes of service time. Car 1 is the attached window attached to the bank unless that window has more cars waiting than the island window. The lone teller will always serve the car that arrived first. If two cars arrive simultaneously, the one at the attached window will be served before the one at the island.
NEW QUESTION # 186
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To be eligible to take the IIA-CIA-Part3 Certification Exam, candidates must have completed the IIA-CIA-Part1 and IIA-CIA-Part2 exams, and have at least 24 months of internal auditing experience. IIA-CIA-Part3 exam is administered by the Institute of Internal Auditors (IIA) and is available in multiple languages. The IIA also offers a range of study materials, including textbooks, practice exams, and online courses, to help candidates prepare for the exam. With the IIA-CIA-Part3 Certification Exam, internal auditors can demonstrate their expertise in business knowledge and gain a competitive edge in their careers.
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