Best Way To Study For IIA IIA-CIA-Part3 Exam Brilliant IIA-CIA-Part3 Exam Questions PDF [Q148-Q167]

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Best Way To Study For IIA IIA-CIA-Part3 Exam Brilliant IIA-CIA-Part3 Exam Questions PDF

Updated Verified Pass IIA-CIA-Part3 Exam – Real Questions and Answers

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NEW QUESTION 148
The process of adding resources to shorten selected activity times on the critical path in project scheduling is called:

Crashing.

The Delphi technique.

ABC analysis.

A branch-and-bound solution.

Crashing is the process of adding resources to shorten activity times on the criteria path in project scheduling.

NEW QUESTION 149
Management of a bookkeeping company observed that the average time spent to perform identical tasks using a new software package decreases as the number of tasks performed increases. The following information on the use of the new software was collected.

If this learning effect continues, what is the average time to perform each of the first eight tasks?

7.29 minutes.

8.1 minutes.

6.56 minutes.

5.90 minutes.

Learning curves reflect the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. This technique is applicable only to the early stages of production or to any new task. One common assumption is that the cumulative average time per unit is reduced by a fixed percentage each time cumulative production is doubled. Based on the given data, this company has a 90% learning curve (90% x 10 minutes = 9 minutes. and 90% < 9 minutes = 8 1 minutes, Accordingly, the cumulative average time to perform eight tasks is 7 29 minutes (90% * 8.1 minutes).

NEW QUESTION 150
Futures and option contracts are examples of what type of financial instruments?

Non derivatives.

Underlying.

Derivatives.

Equity instruments.

A derivative is a financial instrument whose value changes with the change in the underlying. It requires little or no investment and is settled in the future. Examples are futures. forward, swap, or option contracts. The underlying is a specified interest rate, security price. foreign currency exchange rate. price index, commodity price, etc.

NEW QUESTION 151
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?

Risk acceptance.

Risk sharing.

Risk avoidance.

Risk reduction.

NEW QUESTION 152
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition’s cost.

The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.

The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.

50 percent of total organizational cost has been allocated on a volume basis.

NEW QUESTION 153
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:

Collusive pricing.

Dumping.

Predatory pricing.

Price discrimination.

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 154
The basic formula for the Black-Schools Option Pricing Model essentially refs is The difference between the expected present value of the final stock price and the present value of the exercise price.

An entity wishes to price a call option written on a nondividend-paying stock using the Black-Scholes Option Pricing Model. The current stock price is US $50, the exercise price is US $48. The risk-free interest rate is 5.0%, the option expires in 1 year, and the cumulative probabilities used to calculate the present values of the final stock price and the exercise price are 65 and 58 respectively. If the value of et-n) is .9512. the current value of the call option is:

US $6.02

US $4.66

US $4.02

US $2.00 Answer

C is the current value of a call option with time t in years until expiration, S is the current stock price. N di is the cumulative probability that ai deviation less than di will occur in a standardized normal distribution [N di) is an area to the left of d under the curve for the standard normal distribution], E is the call’s exercise price. e is a constant approximately 2.7183), and r is the annualized continuous risk-free rate of return. Thus, the value of the call is:

NEW QUESTION 155
Which of the following price adjustment strategies encourages prompt payment?

Cash discounts.

Quantity discounts.

Functional discounts.

Seasonal discounts.

NEW QUESTION 156
Based on lest results, an IT auditor concluded that the organization would suffer unacceptable loss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

Requested backup tapes were not returned from the offsite vendor In a timely manner.

Returned backup tapes from the offsite vendor contained empty spaces.

Critical systems have boon backed up more frequently than required.

Critical system backup tapes are taken off site less frequently than required

NEW QUESTION 157
A forward contract involves:

A commitment today to purchase a product on a specific future date at a price to be determined some time in the future.

A commitment today to purchase a product some time during the current day at its present price.

A commitment today to purchase a product on a specific future date at a price determined today.

A commitment today to purchase a product only when its price increases above its current exercise price.

A forward contract is an executory contract in which the parties involved agree to the terms of a purchase and a sale, but performance is deferred. Accordingly, a forward contract involves a commitment today to purchase a product on a specific future date at a price del ermined today.

NEW QUESTION 158
An organization engages in questionable financial reporting practices due to pressure to meet unrealistic performance targets. Which internal control component is most negatively affected?

Monitoring.

Control activities.

Risk assessment.

Control environment.

NEW QUESTION 159
An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization’s needs, in order to quickly recover operational capability in the event of a disaster, Which of the following best describes this approach to disaster recovery planning?

Cold recovery plan,

Outsourced recovery plan.

Storage area network recovery plan.

Hot recovery plan

NEW QUESTION 160
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:

Public switched lines.

Fast-packet switches.

Standard electronic mail systems.

A WAN.

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 161
Which of the following statements about voice communications is true?

Modern voice recognition input devices have large vocabularies and short training periods.

A voice output device converts speech into digital data.

Cell phones and PCS services use the same frequency radio waves.

Pagers can alert users to the receipt of messages but cannot transmit text.

Voice recognition input devices provide an alternative to keyboard input. These systems compare the speaker’s voice patterns with prerecorded patterns. Advanced systems now have large vocabularies and shorter training periods. They allow for dictation and are not limited to simple commands.

NEW QUESTION 162
In a critical path analysis, if slack time in an activity exists, the activity:

Is not essential to the overall project.

Is a backup activity to replace a main activity should it fail.

Could be delayed without delaying the overall project.

Involves essentially no time to complete.

Slack is the free time associated with each activity. In other words, paths that are not critical have slack time. Slack represents unused resources that can be diverted to the critical path.

NEW QUESTION 163
Which of the following is based on the concept that there is not one best leadership style and that successful leadership depends on a match between the leader, the situation, and the subordinate?

Attribute theory.

Path goal model

Life cycle model

Contingency theory

NEW QUESTION 164
Which of the following financial statements provides the best disclosure of how a company’s money was used during a particular period?

Income statement.

Owner’s equity statement.

Balance sheet.

Statement of cash flows.

NEW QUESTION 165
In a traditional manufacturing operation, direct costs would normally include:

Machine repairs in an automobile factory.

Electricity in an electronics plant.

Wood in a furniture factory.

Commissions paid to sales personnel.

Direct costs are readily identifiable with and attributable to specific units of production. Wood is a raw material a direct cost) of furniture.

NEW QUESTION 166
Which of the following techniques would best detect an inventory fraud scheme?

Analyze Invoice payments just under individual authorization limits.

Analyze stratification of inventory adjustments by warehouse location.

Analyze inventory invoice amounts and compare with approved contract amounts.

Analyze differences discovered during duplicate payment testing

NEW QUESTION 167
In order to provide useful information for an organization’s risk management decisions, which of the following factors is least important to assess?

The underlying causes of the risk.

The impact of the risk on the organization’s objectives.

The risk levels of current and future events.

The potential for eliminating risk factors.

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IIA-CIA-Part3 exam covers a broad range of topics related to business knowledge, including organizational structure, financial management, IT governance, and risk management. It requires candidates to have a deep understanding of how businesses operate and how they can use this knowledge to enhance their internal auditing practices. IIA-CIA-Part3 exam also emphasizes the importance of staying up-to-date with the latest business trends and practices.

The Certified Internal Auditor (CIA) certification is a widely recognized professional qualification for internal auditors. To become a CIA, candidates must pass a series of exams that cover various aspects of internal auditing. One of these exams is the IIA-CIA-Part3, also known as the Business Knowledge for Internal Auditing exam. IIA-CIA-Part3 exam focuses on the business environment and the role of internal auditing in it.

Updated PDF (New 2024) Actual IIA IIA-CIA-Part3 Exam Questions: https://www.surepassexams.com/IIA-CIA-Part3-exam-bootcamp.html

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