IIA-CIA-Part3 Actual Questions 100% Same Braindumps with Actual Exam!
IIA-CIA-Part3 Study Material, Preparation Guide and PDF Download
IIA-CIA-Part3 exam is a three-hour computer-based test that consists of 100 multiple-choice questions. IIA-CIA-Part3 exam is administered at Pearson VUE test centers around the world. IIA-CIA-Part3 exam is designed to test the candidate's knowledge of business processes, financial management, risk management, and governance. Candidates who pass the exam are awarded the Certified Internal Auditor (CIA) designation.
Understanding IIA CIA Part 3 Exam Topics
- Financial management (20%)
- Information technology (20%)
- Business acumen (35%)
- Information security (25%)
NEW QUESTION # 200
Through the use of decision models, managers thoroughly analyze many alternatives and decide on the best alternative for the company. Often the actual results achieved from a particular decision are not what was expected when the decision was made. In addition, an alternative that was not selected would have actually been the best decision for the company.
The appropriate technique to analyze the alternatives by using expected inputs and altering them before a decision is made is:
- A. Linear programming.
- B. Program evaluation review technique PERT
- C. Expected value analysis.
- D. Sensitivity analysis.
Answer: D
Explanation:
Sensitivity modeling can be used to determine the outcome of a variety of decisions. A trial and- error method may be adopted, usually in a computer model, to calculate the sensitivity of the solution variability of outcomes) to changes in a variable.
NEW QUESTION # 201
A newly appointed board member received an email that appeared to be from the company's CEO. The email stated:
"Good morning. As you remember, the closure of projects is our top priority. Kindly organize prompt payment of the attached invoice for our new solar energy partners." The board member quickly replied to the email and asked under which project the expense should be accounted. Only then did he realize that the sender 's mail domain was different from the company's. Which of the following cybersecurity risks nearly occurred in the situation described?
- A. A risk of spyware and malware.
- B. A ransomware attack risk.
- C. A risk of corporate espionage.
- D. A social engineering risk.
Answer: A
NEW QUESTION # 202
During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?
- A. Business impact analysis.
- B. Testing.
- C. Plan development.
- D. Scope and initiation phase.
Answer: A
NEW QUESTION # 203
The estimated demand for pretzels at the next home football game using a deterministic approach based on the most likely outcome is:
- A. 4,000 pretzels.
- B. 5,000 pretzels.
- C. 4,400 pretzels.
- D. 6,000 pretzels.
Answer: B
Explanation:
A deterministic approach assumes that a value is known with certainty. If that value is deemed to be the most likely outcome, assumed demand will be 5,000 pretzels,
The volume with the highest probability 35%). A beverage stand can sell either soft drinks or coffee on any given day. If the stand sells soft drinks and the weather i= hot, it will make US $2,600; if the weather is cold, the profit will be US $1,000. If the stand sells coffee and the weather is hot, it will make US $1,900: if the weather is cold, the profit will be US $2,000. The probability of cold weather on a given day at this time is 60%.
NEW QUESTION # 204
Governments most likely restrict trade in the long run to:
I. Help foster new industries.
II. Protect declining industries.
III. Increase tax revenues.
IV.
Foster national security.
- A. I and II only
- B. I, II, and IV only
- C. I only
- D. II and III only
Answer: A
Explanation:
Governmental impediments to global competition are generally imposed for the announced purpose of protecting local entities and jobs and developing new industries.
They also may have the effect of raising revenue in the short run. In the long run, tax and revenues will decline because of reduced trade. Examples of governmental impediments are tariffs; duties; quotas; domestic content rules; preferences for local entities regarding procurement, taxes. R&D, labor regulations, and other operating rules; and laws e.g., anti bribery or tax) enacted by a national government that impede national entities from competing globally. These impediments are most likely when industries are viewed as crucial.
NEW QUESTION # 205
Risoner Company plans to purchase a machine with the following conditions:
Purchase price = US $300,000
The down payment = 10% of purchase price with remainder financed at an annual interest rate of 16%. The financing period is 8 years with equal annual payments made every year.
The present value of an annuity of US $1 per year for 8 years at 16% is 4.3436.
The present value of US $1 due at the end of 8 years at 16% is 3050
The annual payment rounded is:
- A. US $82.350
- B. US $39,150
- C. US $43,200
- D. US $62,160
Answer: D
Explanation:
The periodic payment is found by dividing the amount to be accumulated US $300,000 price - $30.000 down payment = US $270,000) by the interest factor for the present value of an ordinary annuity for 8 years at 16%. Consequently, the payment is US $62.160$270,000 - 4.3436).
NEW QUESTION # 206
An organization must manage its flows of raw materials, components, finished goods, services, or information through intermediaries to ultimate consumers. These flows may occur across the functions in an organization's:
- A. Value chain.
- B. Logistic chain.
- C. Supply chain.
- D. Integrated chain.
Answer: A
Explanation:
The supply chain consists of flows from sources of a) raw materials, b) components, c) finished goods, d) services, or e) information through intermediaries to ultimate consumers.
These flows and the related activities may occur across the functions in an organization's value chain R&D, design, production, marketing, distribution, and customer service). These flours and the related activities also may occur across separate organizations.
NEW QUESTION # 207
Preference shares are securities with characteristics of both ordinary shares and bonds. Preference shares have <List A> like ordinary shares and <List B> like bonds.
- A. Option A
- B. Option C
- C. Option D
- D. Option B
Answer: C
Explanation:
Like ordinary shares but unlike bonds), preference shares have no maturity date, although certain preference shares transient preference shares) must be redeemed within a short time e.g., 5 to 10 years). Like bonds but unlike ordinary shares), preference shares have a fixed periodic payment. The fixed payment is in the form of a stated dividend in the case of the preference shares and interest payments in the case of bonds. However, preference dividends, unlike interest, do not become an obligation unless declared.
NEW QUESTION # 208
An internal auditor for a large automotive parts retailer wishes to perform a risk analysis and wants to use an appropriate statistical tool to help identify stores that would be out of line compared to the majority of stores. The most appropriate statistical tool to use is
- A. Time series multiple regression analysis to identify changes in individual stores overtime.
- B. Linear time series analysis.
- C. Cross-sectional regression analysis.
- D. Cross tabulations with chi-square analysis of significance.
Answer: C
Explanation:
Time series data pertain to a given entity over a number of prior time periods. Cross sectional data, however, pertain to different entities for a given time period or at a given time.
Thus, cross-sectional regression analysis is the most appropriate statistical tool because it compares attributes of all stores' operating statistics at one moment in time.
NEW QUESTION # 209
According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:
- A. Treat the evaluation of risk management processes differently from the risk analysis used to plan audit engagements.
- B. Determine and accept the level of risk for the organization.
- C. Recognize that organizations use different techniques for managing risk.
- D. Seek assurance that the key objectives of the risk management processes are being met.
Answer: B
NEW QUESTION # 210
Which of the following terms is not used in project management?
- A. Latest finish.
- B. Dummy activity.
- C. Lumpy demand.
- D. Optimistic time.
Answer: C
Explanation:
Project management concerns managing teams assigned to special projects. Lumpy demand refers to periodic demand for a product or service that increases in large, lumpy increments.
NEW QUESTION # 211
Entity X owns 90% of entity Y. Early in the year, X lent Y U$110,000. No payments have been made on the debt by year-end. Proper accounting at year-end in the consolidated financial statements would:
- A. Eliminate 100% of the receivable, the payable, and the related interest.
- B. Eliminate 90% of the receivable, the payable, and the related interest.
- C. Eliminate 90% of the receivable and the payable but not any related interest.
- D. Eliminate 100% of the receivable and the payable but not any related interest.
Answer: A
Explanation:
In a consolidated balance sheet, reciprocal balances, such as receivables and payables, between a parent and a consolidated subsidiary should be eliminated in their entirety regardless of the portion of the subsidiary's shares held by the parent. Thus, all effects of the US $1 .000.000 loan should be eliminated in the preparation of the year-end consolidated balance sheet.
NEW QUESTION # 212
A post office serves customers in a single line at one service window. During peak periods, the rate of arrivals has a Poisson distribution with an average of 100 customers per hour and service times that are exponentially distributed with an average of 60 seconds per customer. From this, one can conclude that the:
- A. Queue will expand to infinity.
- B. Server will be idle one-sixth of the time.
- C. Average customer waiting time is 2.5 minutes.
- D. Average rate is 100 customers per hour.
Answer: A
Explanation:
One hundred customers arrive in line per hour and only 60 are serviced per hour. Accordingly, the queue will expand to infinity during peak periods.
NEW QUESTION # 213
The ending inventory balance under the first-in, first-out-FIFO) method of inventory valuation is:
- A. US $3,150
- B. US $3,230 D US $3.430
- C. US $3,050
Answer: A
Explanation:
Under the FIFO method, the 1.700 units of ending inventory are valued at the most recent prices. Ending inventory is assumed to include 1.000 units purchased November 24. 500 units purchased May 5. and 700 units purchased January 12. Hence, the ending inventory is US $3.150 [(1 .000 x $1 65) +500 $2.21') +700 x $2.00)].
Additional Information
The entity had no opening inventory.
The Items sold on March 15 were purchased on January 12.
The items sold on July 3 war purchased on May 5
NEW QUESTION # 214
Which of the following principles are common to both hierarchical and open organizational structures?
1. Employees at all levels should be empowered to make decisions.
2. A supervisor's span of control should not exceed seven subordinates.
3. Responsibility should be accompanied by adequate authority.
4. A superior cannot delegate the ultimate responsibility for results.
- A. 3 and 4
- B. 2 and 3
- C. 1 and 2
- D. 1 and 4
Answer: A
NEW QUESTION # 215
According to IIA guidance, which of the following is a broad collection of integrated policies, standards, and procedures used to guide the planning and execution of a project?
- A. Project development
- B. Project management methodologies
- C. Project governance.
- D. Project portfolio.
Answer: C
NEW QUESTION # 216
Which of the following is true regarding the use of remote wipe for smart devices?
- A. It can wipe data that is backed up via cloud computing
- B. It enables the erasure and reformatting of secure digital (SD) cards.
- C. It can restore default settings and lock encrypted data when necessary.
- D. It can delete data backed up to a desktop for complete protection if required.
Answer: B
NEW QUESTION # 217
When a perpetual inventory system is used and a difference exists between the perpetual inventory amount balance and the physical inventory count. a separate entry is needed to adjust the perpetual inventory amount. Which of the following demonstrates that adjusting entry?
- A. Extraordinary loss due to write-down of inventory Allowance for inventory shortages
- B. Extraordinary loss due to write-down of inventory
- C. Cost of goods sold Retained earnings appropriated for shortages
- D. Inventory over and short Inventory
Answer: D
Explanation:
The entry to record a write-down is a debit to inventory over and short and a credit to inventory. This amount is reported as an adjustment of cost of goods sold or as an other expense on the income statement.
NEW QUESTION # 218
A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?
- A. Full cost
- B. Full cost plus a markup.
- C. Variable cost plus a markup
- D. Market price of the product
Answer: D
NEW QUESTION # 219
An electronic meeting conducted between several parties at remote sites is referred to as:
- A. Interactive processing.
- B. Telecommunicating
- C. Teleprocessing.
- D. Teleconferencing
Answer: D
Explanation:
Conducting an electronic meeting among several parties at remote sites is teleconferencing. It can be accomplished by telephone or electronic mail group communication software. Videoconferencing permits the conferees to see each other on video screens. The practice has grown in recent years as companies have attempted to cut their travel costs.
NEW QUESTION # 220
Which of the following disaster recovery plans includes recovery resources available at the site, but they may need to be configured to support the production system?
- A. Warm site recovery plan.
- B. Cold site recovery plan.
- C. Cool site recovery plan.
- D. Hot site recovery plan.
Answer: A
NEW QUESTION # 221
An internal auditor is evaluating an organization's business continuity management program According to HA guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?
- A. Desk check testing
- B. Tabletop or boardroom-style testing
- C. End-to-end testing
- D. IT systems and application walkthrough
Answer: C
NEW QUESTION # 222
Which of the following situations best applies to an organization that uses a project rather man a process to accomplish its business activities?
- A. A manufacturing organization acquires component parts from a contracted vendor
- B. A city department sets up a new firefighter training program.
- C. A clothing company designs makes and sells a new item.
- D. A commercial constructor company is hired to build a warehouse.
Answer: D
NEW QUESTION # 223
What security feature would Identity a legitimate employee using her own smart device to gam access to an application run by the organization?
- A. Obtaining written assurance from the employee that security policies and procedures are followed.
- B. Introducing a security question known only by the employee.
- C. Using a jailbroken or rooted smart device feature.
- D. Using only smart devices previously approved by the organization.
Answer: C
NEW QUESTION # 224
Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?
- A. A multinational company uses raw materials and components from more than one country.
- B. A multinational company exports its products to other countries.
- C. A multinational company operates outside of its country of origin.
- D. A multinational company has stockholders in other countries.
Answer: C
NEW QUESTION # 225
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