Pass IIA IIA-CIA-Part3 Exam with Guarantee Updated 413 Questions [Q73-Q95]

5/5 - (1 vote)

Pass IIA IIA-CIA-Part3 Exam with Guarantee Updated 413 Questions

Latest IIA-CIA-Part3 Pass Guaranteed Exam Dumps Certification Sample Questions

IIA IIA-CIA-Part3 Exam Syllabus Topics:

Topic	Details
Topic 1	?Recognize advanced and emerging financial accounting concepts Organizational Structure and Business Processes
Topic 2	Explain the data analytics process ?Differentiate the various forms of user authentication and authorization controls
Topic 3	Define the operational roles of a network administrator, database administrator, and help desk
Topic 4	Describe cybersecurity and information security-related policies Describe the strategic planning process and key activities
Topic 5	Recognize core activities in the systems development lifecycle and delivery Recognize the purpose and applications of IT control frameworks
Topic 6	Recognize the various forms and elements of contracts ?Identify project management techniques
Topic 7	Recognize data privacy laws and their potential impact on data security policies and practices Explain disaster recovery planning site concepts
Topic 8	Differentiate types of common physical security controls Examine common performance measures

NO.73 Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of $3 per unit The market price of the product is $15 plus 20% selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for $18 Which of the following methods of transfer pricing is being used?

Market price.

Negotiation-based.

Full absorption cost

Variable cost

NO.74 Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

Both the key used to encrypt the data and the key used to decrypt the data are made public.

The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

Both the key used to encrypt the data and the key used to decrypt the data are made private.

NO.75 Changes in accounting estimates are viewed as:

Extraordinary items.

Errors in reported amounts in prior periods.

Catch-up adjustments related to amounts reported in prior periods.

Reassessments of current status and future benefits and obligations.

NO.76 Which of the following inventory items would be the most frequently reviewed in an ABC inventory control system?

Expensive, frequently used, high stock-out cost items with short lead times.

Expensive, frequently used, low stock-out cost items with long lead times.

Inexpensive, frequently used, high stock-out cost items with long lead times.

Expensive, frequently used, high stock-out cost items with long lead times.

NO.77 Which of the following is usually a benefit of using electronic funds transfer EFT) for international cash transactions?

Improvement of the audit trail for cash receipts and disbursements.

Creation of self-monitoring access controls.

Reduction of the frequency of data entry errors.

Off-site storage of source documents for cash transactions.

NO.78 Enterprise-wide resource planning ERP) software packages, such as SAP and Oracle, are all-inclusive systems that attempt to provide entity-wide information. ERP systems provide
advantages to the auditor because they:

Have proven difficult for some firms to install.

Typically require firms to reduce the division of duties and responsibilities found in traditional systems.

Typically have built-in transaction logs and the ability to produce a variety of diagnostic reports.

Have been installed by smaller firms so, to date, few auditors have encountered them.

NO.79 Dale has 20 days to complete production of an order for an important customer. The customer wants 96 units of product that may be painted either red or white. The red units can be produced at a rate of 4 per day. The white units, because of a different quality of paint, can be produced at a rate of 7 per day. The materials for the red units cost US $80 each, while the white units cost US $120 each. Dale wants to keep costs at a minimum. What is the constraint that expresses the number of units to be produced?

4R + 7W = 20

(R/4) + (W-7) 20

R + W=20

4R + 7W=96

NO.80 The owner of a newly established janitorial entity is deciding what type of checking to open. The entity is planning to keep a US $500 minimum balance in the account for emergencies and plans to write roughly 80 checks per month. The bank charges US $10 per month plus a US $0.10 per check charge for a standard business checking account with no minimum balance. The entity also has the option of a premium business checking account that requires a US $2,500 minimum balance but has no monthly fees or per check charges If the entity’s cost of funds is 10%. which account should the entity choose?

Standard account, because the savings is US $34 per year.

Premium account, because the savings is US $34 per year.

Standard account, because the savings is US $16 per year.

Premium account, because ‘the savings is US $16 per year.

NO.81 Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?

Promote closer linkage between organizational strategy and information.

Provide users with greater online access to information systems.

Enhance the functionality of application systems.

Expand the use of automated controls.

NO.82 Which of the following statements is correct regarding risk analysis?

The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.

The highest risk assessment should always be assigned to the area with the largest potential loss.

The highest risk assessment should always be assigned to the area with the highest probability of occurrence.

Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.

NO.83 Which of the following is not true about simu-lation models that use Monte Carlo processes?

They are deterministic in nature.

They may involve sampling.

They mathematically estimate what actual performance would be.

They emulate stochastic systems.

NO.84 Which of the following techniques would be least effective in resolving the conflict created by an internal audit client’s perception of the audit report as a personal attack on his management performance?

The auditor should focus on the audit client as a person and understand him, rather than just concentrating on the problem.

The auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.

The auditor should explore alternative solutions to address the audit problem, so the audit client has options.

The auditor should take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.

NO.85 An entity in a 40% tax bracket needs <List A> of operating income to pay 1 of interest and <List B> of pretax income to pay 1 of dividends.

Option A

Option B

Option C

Option D

NO.86 Which of the following is false with regard to Internet connection firewalls?

Firewalls can protect against computer viruses.

Firewalls monitor attacks from the Internet.

Firewalls provide network administrators tools to retaliate against hackers.

Firewalls may be software-based or hardware-based.

NO.87 Which of the following are likely indicators of ineffective change management?
1.IT management is unable to predict how a change will impact interdependent systems or business processes.
2.There have been significant increases in trouble calls or in support hours logged by programmers.
3.There is a lack of turnover in the systems support and business analyst development groups.
4.Emergency changes that bypass the normal control process frequently are deemed necessary.

1 and 3 only

2 and 4 only

1, 2, and 4 only

1, 2, 3, and 4

NO.88 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:

U S $1,600,000

US $2,000,000

US $2,500,000

U S $10,000,000

NO.89 Which of the following is true about the impact of price inflation on financial ratio analysis?

Inflation impacts only those ratios computed from balance sheet accounts.

Inflation impacts financial ratio analysis for one entity over time, but not comparative analysis of entities of different ages.

Inflation impacts financial ratio analysis for one entity overtime, as well as comparative analysis of entities of different ages.

Inflation impacts comparative analysis of entities of different ages, but not financial ratio analysis for one entity over time.

NO.90 When the economic order quantity EOQ) decision model is employed, the List A are being offset or balanced

Option A

Option B

Option C

Option D

NO.91 The following data on variables x and y was collected from June to October: The correlation coefficient between variables x and is nearest to:

1.00

-1.00

0.50

0.00

NO.92 One of the main reasons total quality management (TQM) can be used as a strategic
weapon is that:

The cumulative improvement from a company’s TQM efforts cannot readily be copied by competitors.

Introducing new products can lure customers away from competitors.

Reduced costs associated with better quality can support higher shareholder dividends.

TQM provides a comprehensive planning process for a business.

NO.93 An organization has recorded the following profit and expenses:
Profit before interest and tax
$200,000
Sales
$2,300,000
Purchases of materials
$700,000
Interest expenses
$30,000
If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

$34,000

$51,000

$60,000

$320,000

NO.94 Return on investment ROI) is a very popular measure employed to evaluate the performance of corporate segments because it incorporates all of the major ingredients of profitability revenue, cost, investment) into a single measure. Under which one of the following combinations of actions regarding a segment’s revenues costs, and investment would a segment’s ROI always increase?