Free IIA-CIA-Part3 Exam Braindumps certification guide Q&A
IIA-CIA-Part3 Certification Overview Latest IIA-CIA-Part3 PDF Dumps
IIA-CIA-Part3 certification exam, also known as Business Knowledge for Internal Auditing, is a highly sought-after certification among internal auditors. Business Knowledge for Internal Auditing certification exam is designed to test the candidate's knowledge of business concepts and their application in an internal audit context. IIA-CIA-Part3 exam is conducted by the Institute of Internal Auditors (IIA) and serves as an internationally recognized validation of an internal auditor's expertise in business knowledge.
NEW QUESTION # 183
In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?
- A. No part of TOC analysis corresponds to the drum-buffer-rope model.
- B. Drum.
- C. Rope.
- D. Buffer.
Answer: D
Explanation:
Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e., the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.
NEW QUESTION # 184
According to 11A guidance on IT, which of the following are indicators of poor change management?
1. Inadequate control design.
2. Unplanned downtime.
3. Excessive troubleshooting .
4. Unavailability of critical services.
- A. 1, 3, and 4 only
- B. 2, 3, and 4 only
- C. 2 and 3 only.
- D. 1, 2, and 3 only
Answer: B
NEW QUESTION # 185
Which of the following IT professionals is responsible for providing maintenance to switches and routers to keep IT systems running as intended?
- A. Data center operations manager
- B. Response and support team.
- C. Network administrator
- D. Database administrator,
Answer: C
NEW QUESTION # 186
An internal audit manager is explaining to a newly hired staff auditor the various analytics techniques frequently used by the internal audit activity Which of the following statements is true regarding these analytics techniques?
- A. Data mining involves examining small amounts of structured data in a systematic manner
- B. Data mining is a type of data analysis that focuses on finding statistical relationships in order to create profiles
- C. Process mining is a type of data analysts where the data subject is a process
- D. Process analysis is a type of data mining where the data subject is a designated area of a process
Answer: B
NEW QUESTION # 187
A company produced and sold 100.000 units of a component with a variable cost of US $20 per unit Of the units produced. 1,200 failed the company's tolerance specifications and were reworked at a cost of US $12 per unit. Reworked units were sold as factory seconds at US $45 each and first-quality units were sold at US $50 each. If the company had implemented a quality assurance program to ensure that all units produced conformed to specifications, the increase in the company's contribution margin from this component would have been:
- A. US $21,600
- B. US $14,400
- C. US $39,600
- D. US $20,400
Answer: D
Explanation:
Both the cost of rework and the income lost when units were sold as factory seconds rather than first-quality units need to be included in the, calculation The following is the appropriate calculation: [US $12 + $50 'i45)] x 1.200 = US $20,400.
NEW QUESTION # 188
An organization with a stable rating, as assessed by International rating agencies, has issued a bond not backed by assets or collateral. Payments of the interests and the principal to bondholders are guaranteed by the organization. Which type of bond did the organization issue?
- A. A sinking fund bond.
- B. A secured bond.
- C. A junk bond.
- D. A debenture bond
Answer: D
NEW QUESTION # 189
In light of increasing emission taxes in the European Union, a car manufacturer introduced a new middle-class hybrid vehicle specifically for the European market only.
Which of the following competitive strategies has the manufacturer used?
- A. Cost leadership strategy.
- B. Focus strategy
- C. Differentiation strategy.
- D. Reactive strategy.
Answer: B
NEW QUESTION # 190
Under IAS 2, Inventories all of the following should be decided when reporting inventories except:
- A. The carrying amount of inventories in classifications appropriate to the entire.
- B. An estimated amount of obsolete inventory included in the total inventory valuation.
- C. The cost formulas used.
- D. The use of the lower-of-cost-or-net-realizable-value method, if applicable.
Answer: B
Explanation:
According to IAS 2, Inventories, disclosures about inventories include, for example. The accounting policies applied in measuring inventories. including the cost formulas used, total carrying amount; carrying amount for each classification appropriate to the entity carrying amount of items carried at fair value minus costs to sell; amount of any reversal of write downs as income; reasons for such a reversal; and carrying amount of inventory pledged as security. Thus is disclosures under IAS 2 include the carrying amount of inventories carried at NRV, not the amount of ate inventory.
NEW QUESTION # 191
If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?
- A. Continue the engagement without conforming with the other parts of The IIA's Standards.
- B. Conform with all other parts of The IIA's Standards and provide appropriate disclosures.
- C. Conform with all other parts of The IIA's Standards; there is no need to provide appropriate disclosures.
- D. Withdraw from the engagement.
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION # 192
Which of the following are appropriate reasons for internal auditors to document processes
as part of an audit engagement?
1.To determine areas of primary concern.
2.To establish a standard format for process mapping.
3.To define areas of responsibility within the organization.
4.To assess the performance of employees.
- A. 1 and 2 only
- B. 2 and 4 only
- C. 1 and 3 only
- D. 2 and 3 only
Answer: C
NEW QUESTION # 193
Which of the following practices impacts copyright issues related to the manufacturer of a smart device?
- A. Session hijacking.
- B. Authentication.
- C. Jailbreaking
- D. Eavesdropping,
Answer: C
NEW QUESTION # 194
In which type of business environment are price cutting strategies and franchising strategies most appropriate?
- A. Competitive, embryonic.
- B. Embryonic, focused.
- C. Mature, fragmented.
- D. Fragmented, decline.
Answer: C
NEW QUESTION # 195
The dominant firm in a market pursues a market-leader strategy. This strategy may involve
- A. Innovations as an offensive strategy.
- B. Holding the market stable to avoid attracting new competitors.
- C. A flank defense to strengthen the firm's brand.
- D. Sending market signals as a mobile defense.
Answer: A
Explanation:
Constant innovation to improve products and services, control costs, and increase distribution effectiveness is the basis for a good offensive strategy. The leader must continuously improve the value offered to customers.
NEW QUESTION # 196
DEF is the consignee for 1.000 units of product X for ABC Company. ABC should recognize the revenue from these 1,000 units when:
- A. The agreement between DEF and ABC is signed.
- B. DEF receives the goods from AB
- C. DEF sells the goods and informs ABC of the sale
- D. ABC ships the goods to DEF.
Answer: C
Explanation:
Under a consignment arrangement, the consignor ships merchandise to the consignee who acts as agent for the consignor in selling the goods are in the physical possession of the consignee but remain the property of the consignor arid are included in the consignor's inventory. Revenue and the related cost of goods sold from these consigned goods should only be recognized by the consignor when the merchandise is sold and delivered to the final customer. Accordingly, recognition occurs when notification is received that the consignee has sold the goods. Only then are the recognition occurs when notification is received that the consignee has the goods. Only then are the recognition criteria for a sale of goods satisfied the enterprise has transferred the significant risks and reward of ownership, the enterprise has neither continuing managerial involvement to an extent associated with ownership nor effective control over the goods, the amount can be reliably measured, it is probably that the economic benefits with flow to the enterprise, and transactional costs can be reliably measured.
NEW QUESTION # 197
Which of the following is a computer program that appears to be legitimate but performs some illicit activity when it is run?
- A. Trojan horse.
- B. Killer application.
- C. Hoax virus.
- D. Web crawler.
Answer: A
Explanation:
A Trojan horse is a computer program that appears friendly, for example, a game, but that actually contains an application destructive to the computer system.
NEW QUESTION # 198
Which of the following access setups is appropriate in a computer environment?
- A. No Yes Yes Yes
- B. Yes No No No
- C. No Yes Yes No
- D. Yes No No Yes
Answer: B
Explanation:
The appropriate setup for access in the computer environment is for users to have update access for production data. Users need to update data through applications programs, but have no need to change production programs.
NEW QUESTION # 199
Which of the following budgets must be prepared first?
- A. Production budget.
- B. Sales budget.
- C. Selling and administrative expenses budget.
- D. Cash budget.
Answer: B
NEW QUESTION # 200
The data below were gathered on two different machine centers and two products.
Which item below would be part of a linear programming formulation of this problem?
- A. Subject to: 4A + 5B130.
- B. Subject to: A 0.
- C. Subject to: 2.5A+4B60.
- D. Maximize: Contribution 4A + 5B.
Answer: C
Explanation:
The linear programming solution is subject to constraints on the availability of machine hours in both centers. For example, products A and B require 2.5 and 4 hours per unit, respectively, in Machine Center 1, but only 60 hours are available. Hence, the optimal production of A and B to the following constraint:
2.5A + 4B 60
NEW QUESTION # 201
Which of the following scenarios indicates an effective use of financial leverage?
- A. An organization has a current ratio of 2 and an inventory turnover of 12.
- B. An organization has a profit margin of 30% and an assets turnover of 7%.
- C. An organization has a debt to total assets ratio of 0.2 and an interest coverage ratio of 10.
- D. An organisation has a rate of return on equity of 20% and a rate of return on assets of 15%.
Answer: A
NEW QUESTION # 202
Which of the following is a characteristic of just-in-time inventory management systems?
- A. They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.
- B. Users determine the optimal level of safety stocks.
- C. They rely heavily on high quality materials.
- D. They are applicable only to large organizations.
Answer: C
NEW QUESTION # 203
A carpet manufacturer maintains a retail division consisting of stores stocking its brand and other brands, and a manufacturing division that makes carpets and pads. An outside market exists for carpet padding material in which all padding produced can be sold. The proper transfer price for padding transferred from the manufacturing division to the retail division is:
- A. The market price at which the retail division could purchase padding.
- B. Variable manufacturing division production cost plus allocated fixed factory overhead.
- C. Variable manufacturing division production cost.
- D. Variable manufacturing division production cost plus variable selling and administrative cost.
Answer: A
Explanation:
The three basic criteria that the transfer pricing system in a decentralized company should satisfy are to 1) provide information allowing central management to evaluate divisions with respect to total company profit and each division's contribution to profit, 2) stimulate each manager's efficiency without losing each division's autonomy, and 3) motivate each divisional manager to achieve his/her own profit goal in a manner contributing to the company's success. The market price should be used as the transfer price to avoid waste and maximize efficiency in a competitive economy an outside market in which all padding produced can be sold). This price also measures the product's profitability and the division managers' performance in a competitive environment.
NEW QUESTION # 204
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic cate interchange?
- A. A variable volume sensitive to material cost
- B. A Large volume of custom purchases
- C. A just-in-time purchasing environment
- D. A currently inefficient purchasing process
Answer: C
NEW QUESTION # 205
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