IIA-CIA-Part3 Practice Dumps - Verified By Actual4dump Updated 405 Questions
Updated IIA-CIA-Part3 Exam Dumps - PDF Questions and Testing Engine
NEW QUESTION 152
During an audit of the organization's annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years. Which of the following is the most likely explanation for this increase?
- A. Write-off of inventory is increasing.
- B. Process to manufacture goods is more efficient.
- C. Labor productivity to produce goods is increasing.
- D. Cost of raw material inventory items is decreasing.
Answer: D
NEW QUESTION 153
The network below describes the interrelationships of several activities necessary to complete a project. The arrows represent the activities. The numbers between the arrows indicate the number of months to complete each activity.
The shortest time to complete the project is:
- A. 5 months.
- B. 14 months.
- C. 8 months.
- D. 6 months.
Answer: C
Explanation:
The critical (longest) path through the network from node (A) to node (F) is path A-C-D-F. All other paths are shorter than path A-C-D-F, so the activities along those paths can be completed before the activities along path A-C-D-F. Thus, the shortest time to complete the project is 8 months (3 + 3 + 2).
NEW QUESTION 154
The networking capital is:
- A. US $210
- B. US $490
- C. US $160
- D. US $350
Answer: A
Explanation:
Net working capital is the difference between current assets and current liabilities. It equals US $210 $100 cash + $200 A/R + $50 inventory- $140 A/P).
NEW QUESTION 155
An internal auditor is assessing the risks related to an organization's mobile device pokey She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems Which of the following types of smart device risks should the internal auditor be most concerned about'
- A. Privacy
- B. Physical security.
- C. Strategic
- D. Compliance
Answer: D
NEW QUESTION 156
Which is the least effective form of risk management?
- A. Systems-based detective control.
- B. People-based preventive control.
- C. People-based detective control.
- D. Systems-based preventive control.
Answer: C
NEW QUESTION 157
Large organizations often have their own telecommunications networks for transmitting and receiving voice, data, and images. Very small organizations, however, are unlikely to be able to make the investment required for their own networks and are more likely to use:
- A. Fast-packet switches.
- B. Standard electronic mail systems.
- C. A WAN.
- D. Public switched lines.
Answer: D
Explanation:
Companies can use public switched lines phone lines) on a per-transmission basis. This
option is the most cost-effective way for low-volume users to conduct telecommunications.
NEW QUESTION 158
An entity has daily cash receipts of US $300,000. A bank has offered to provide a lockbox service that will reduce the collection time by 3 days. The bank requires a monthly fee of US $2,000 for providing this service. If money market rates are expected to average 6% during the year, the additional annual income loss) of using the lockbox service is:
- A. US $30,000
- B. US $12,000
- C. US $(24,000)
- D. US $54,000
Answer: A
Explanation:
Because collections will be accelerated by 3 days at a rate of US $300,000 per days, the entity will have an additional US $900,000 to invest. At a rate of 6%, the interest earned will be US $54,000 per year. However, the bank will charge US $24,000 $2,000 per month x 12 months) for its services. Thus, the entity will increase its income by US $30,000 54,000 $24,000).
NEW QUESTION 159
An entity has a 50% gross margin, general and administrative expenses of US $50, interest expense of US $20, and profit of US $10 for the year just ended. If the corporate tax rate is
50%, the level of sales for the year just ended was:
- A. US $135
- B. US $150
- C. US $90
- D. US $180
Answer: D
Explanation:
Profit equals sales minus cost of sales, GSA expenses, interest, and tax. Given a 50% tax rate, profit before tax must have been US $20 [$10 profit -1_0 - 5 tax rate)]. Accordingly, profit before interest and tax must have been US $40$20 profit before tax + $20 interest), and the gross margin sales - cost of sales) must have been US $90$40 profit before interest and tax + $50 G&A expenses). If the gross margin is 50% of sales, sales equals US $180$90 gross margin - .5).
NEW QUESTION 160
What selling price would the company have to charge for its product in Year 2 to maintain the same contribution margin percentage rate as in Year 1?
- A. US $6450
- B. US $6180
- C. US $6400
- D. US $7200
Answer: C
Explanation:
The CMR equals unit contribution margin UCM) divided by unit selling price. The UCM equals the unit selling price minus unit variable cost. The original unit selling price was US $60 $9,000,000 revenue 150,000 units), and the original unit variable cost was US $27 [ $1,800,000 + $720,000 + $1,080,000 + $450,000) + 150,000 units]. The original CPr1R was therefore US $.55 [ $60 - $27) + $60]. The new unit variable cost was calculated as US $28.80. Accordingly the unit selling price X) is US $64.
NEW QUESTION 161
Which of the following issues would be of most concern to an auditor relating to an organization's Internet security policy?
- A. System efficiency.
- B. Auditor documentation.
- C. Data integrity.
- D. Rejected and suspense item controls.
Answer: C
Explanation:
Controls are intended to ensure the integrity, confidentiality, and availability of information. An auditor relies on the integrity of the system's data and programs in making critical decisions throughout the audit process.
NEW QUESTION 162
An organization is considering the outsourcing of its business processes related to payroll and information technology functions. Which of the following is the most significant area of concern for management regarding this proposed agreement?
- A. Ensuring that payments to the vendor are appropriate and timely for the services delivered.
- B. Ensuring that there are means of monitoring the efficiency of the outsourced process.
- C. Ensuring that there are means of monitoring the effectiveness of the outsourced process.
- D. Ensuring that the vendor has complete management control of the outsourced process.
Answer: C
NEW QUESTION 163
Convertible bonds and bonds issued with warrants differ in that:
- A. Convertible bonds have higher coupon rates than straight bonds, while bonds issued with warrants have lower coupon rates than straight bonds.
- B. Convertible bonds remain outstanding after the bondholder exercises the right to become an ordinary shareholder, while bonds that are issued with warrants do not.
- C. Convertible bonds have lower coupon rates than straight bonds, while bonds issued with warrants have higher coupon rates than straight bonds.
- D. Bonds that are issued with warrants remain outstanding after the bondholder exercises the right to become an ordinary shareholder, while convertible bonds do not.
Answer: D
Explanation:
Warrants are usually detachable. They are options to purchase equity securities and should be separately accounted for. A capital gain results if the share price rises above the option price. The bonds remain outstanding if the warrants are exercised. Convertible bonds must be surrendered when the conversion privilege is exercised. Under IFRSs, the equity and debt features of convertible bonds are separately accounted for.
NEW QUESTION 164
Company M sold 1.000 treasury shares at US $33 per share. The shares had originally been issued at US $12 per share and had been repurchased at US $27 per share. The par value is US $5 per share. In the entry to record the reissuance using the cost method, what account should be credited?
- A. Retained earnings of US $6,000
- B. Share premium of US $6,000.
- C. Treasury shares of US $28,000
- D. Paid-in capital in excess of par of US $28,000.
Answer: B
Explanation:
Under the cost method, treasury shares are carried at cost. In this case, cost is US $27,0001,000 shares x $27). The journal entry to record a sale at US $33 per share is:
NEW QUESTION 165
An organization uses the management-by-objectives method, whereby employee performance is based on defined goals. Which of the following statements is true regarding this approach?
- A. It is more successful when goal-setting is performed not only by management, but by all team members, including lower-level staff.
- B. It is particularly helpful to management when the organization is facing rapid change.
- C. It is a more successful approach when adopted by mechanistic organizations.
- D. It is particularly successful in environments that are prone to having poor employer-employee relations.
Answer: D
Explanation:
Explanation
NEW QUESTION 166
Which of the following is a major element of the ISO 9000 quality management system standards?
- A. The attitude and actions of the board and management regarding the significance of control within the organization.
- B. The assessment of the risk that objectives are not achieved.
- C. The principle that improved employee satisfaction will lead to increased productivity.
- D. A requirement for organizations to monitor information on customer satisfaction as a measure of performance.
Answer: D
Explanation:
ISO 9000: 2008 provides a model for quality assurance programs. It requires an entity to demonstrate its ability to increase customer satisfaction through improving the QMS and ensuring conformity with requirements.
NEW QUESTION 167
In PERT, slack is the:
- A. Uncertainty associated with time estimates.
- B. Path that has the largest amount of time associated with it.
- C. Number of days an activity can be delayed without forcing a delay for the entire project.
- D. Difference between the latest starting time and earliest finishing time.
Answer: C
Explanation:
PERT diagrams are free-form networks showing each activity in a large project as a line between events. The critical path is the longest path in time through the network. That path is critical in that, if any activity on the critical path takes longer than expected, the entire project will be delayed. Paths that are not critical have slack time. Slack is the number of days an activity can be delayed without forcing a delay for the entire project.
NEW QUESTION 168
Total inventory ordering costs per year equal:
- A. US $2,400
- B. US $1,250
- C. US $2,880
- D. US $3,600
Answer: C
Explanation:
Total annual demand is 48,000 units 4,000 per month x 12). Hence, total annual ordering costs equal US $2,880 [$150 cost per order 48,000 units - 2,500 EOQ)].
NEW QUESTION 169
Which of the following strategies is most appropriate for an industry that is in decline?
- A. Invest in research and development.
- B. Shift toward mass production.
- C. Control costs.
- D. Invest in marketing.
Answer: C
NEW QUESTION 170
......
IIA IIA-CIA-Part3 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
| Topic 5 |
|
| Topic 6 |
|
| Topic 7 |
|
| Topic 8 |
|
| Topic 9 |
|
| Topic 10 |
|
| Topic 11 |
|
| Topic 12 |
|
New (2022) IIA IIA-CIA-Part3 Exam Dumps: https://www.actual4dump.com/IIA/IIA-CIA-Part3-actualtests-dumps.html
Best Way To Study For IIA IIA-CIA-Part3 Exam Brilliant IIA-CIA-Part3 Exam Questions PDF: https://drive.google.com/open?id=1-KiUKA7rCKcrkAAFv9fceFtNTCL-m_9F