2022 Latest IIA-CIA-Part3 Exam Dumps Recently Updated 405 Questions
IIA IIA-CIA-Part3 Real 2022 Braindumps Mock Exam Dumps
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 QUESTION 54
Which of the following would not impair the objectivity of internal auditor?
- A. Setting the risk appetite.
- B. Providing assurance that risks assessed are correctly evaluated.
- C. Management assurance on risks.
- D. Implementing risk responses on behalf of management.
Answer: B
NEW QUESTION 55
To ensure privacy in a public key encryption system, knowledge of which of the following keys would be required to decode the received message?
I. Private
II.
Public
- A. II.
- B. Both l and ll. D Neither I nor IL
- C. I.
Answer: C
Explanation:
In a public key system, the public key is used to encrypt the message prior to transmission, whereas the private key is needed to decrypt decode) the message.
NEW QUESTION 56
Company B's bank requires a compensating balance of 20% on a US $100.000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?
- A. 7.00%
- B. 8.75%
- C. 5.83%
- D. 8.40%
Answer: B
Explanation:
Interest on the loan is US $7,000 7% x $100,000) Given that the borrower has to maintain a 20% compensating balance, only US $80,000 [$100,000 - 20% x 100,000)] is available for use. Thus, the company is paying US $7.000 for the use of US $80.01 ii a in funds at an effective cost of 8.75% US. $7.000 / 80,000).
NEW QUESTION 57
The company has considered several alternatives for replacing the hardware required for a regional center's processing. An advantage of using a third-party cold site is that:
- A. The replacement site could be up and running in a few hours.
- B. No additional equipment would be required at the regional centers.
- C. Travel expenses would be minimized for company personnel.
- D. Personnel employed at the site would be familiar with company operations.
Answer: B
Explanation:
A cold site backup facility is a shell facility where the user can quickly install computer equipment and resume operations in the event of a disaster. The facility has all of the needed assets in place except the needed computer equipment and is vendor-dependent for timely delivery of equipment. Accordingly, an advantage of using a third-party cold site is the elimination of the need for additional equipment. An automobile and personal property insurer has decentralized its information processing to the extent that headquarters has less processing capacity than any of its regional processing centers.
These centers are responsible for initiating policies, communicating with policyholders, and adjusting claims. The company uses leased lines from a national telecommunications company. Initially, the company thought there would be little need for interregion communication, but that has not been the case. The company underestimated the number of customers that would move between regions and the number of customers with claims arising from accidents outside their regions. The company has a regional center in an earthquake-prone area and is planning how to continue processing if that center, or any other single center, were unable to perform its processing.
NEW QUESTION 58
An objective of financial reporting is
- A. Assessing the adequacy of internal control.
- B. Providing information on compliance with established procedures.
- C. Evaluating management results compared with standards.
- D. Providing information useful to investors, creditors, donors, and other users for decision making.
Answer: D
Explanation:
The objectives of financial reporting are concerned with the underlying goals and purposes of accounting. They are to provide information that1) is useful to those making investment and credit decisions, assuming that those individuals have a reasonable understanding of business and economic activities:2) is helpful to current and potential investors and creditors and other users in assessing the amount timing, and uncertainty of future cash flows; and3) discloses economic resources claims to those resources, and the changes therein.
NEW QUESTION 59
The primary reason for adopting TQM was to achieve:
- A. Reduced delivery charges.
- B. Greater employee participation.
- C. Greater customer satisfaction.
- D. Reduced delivery time.
Answer: C
Explanation:
TQM is an integrated system that anticipates, meets, and exceeds customers' needs, wants, and expectations.
NEW QUESTION 60
The high cost of short-term financing has recently caused an entity to reevaluate the terms of credit it extends to its customers. The current policy is 1/10, net 60. If customers can borrow at the prime rate, at what prime rate must the entity change its terms of credit in order to avoid an undesirable extension in its collection of receivables?
- A. 8%
- B. 2%
- C. 7%
- D. 5%
Answer: A
Explanation:
Terms of 1/10, net 60 mean that a buyer can save 1% of the purchase price by paying 50 days early. In essence, not taking the discount results in the buyer's borrowing 99% of the in price for 50 days at a total interest charge of 1% of the invoice price. Because a year has 7.3 50-day per periods 365 50), the credit terms 1/10, net 60 yield an effective annualized interest charge of approximately 7.371 [(I% 99%) 7.3]. If the prime rate were higher than 7.37%, the buyer would prefer to borrow from the vendor i.e., not pay within the discount period) rather than from a bank. Consequently, an 8% prime rate could cause the vendor's receivables to increase. An entity sells 10,000 skateboards a year at US $66 each. All sales are on credit, with terms of 3/10. net 30, which means three percent discount if percent it is made within 10 days; otherwise full payment is due at the end of 30 days. One half of the customers are expected to take advantage of the discount and pay on day 10. The other half are expected to pay on day 30. Sales are ,, ict id to be uniform throughout the year for both types of customers.
NEW QUESTION 61
Which of the following descriptions of the internal control system are indicators that risks are managed effectively?
1. Existing controls promote compliance with applicable laws and regulations.
2. The control environment is designed to address all identified risks to the organization.
3. Key controls for significant risks to the organization remain consistent over time.
4. Monitoring systems are in place to alert management to unexpected events.
- A. 2 and 4.
- B. 2 and 3.
- C. 1 and 3.
- D. 1 and 4.
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 62
International marketing activities often begin with:
- A. Standardization.
- B. Limited exporting.
- C. Domestic marketing.
- D. Global marketing.
Answer: B
NEW QUESTION 63
On December 31, Year 1, Health entities reported a US $150,000 warranty expense in its income statement. The expense was based on actual warranty cost of US$30,000 in Year 1 and expected warrant costs of US $35,000 in Year 2, US $40,000 in Year 3, and US $45,000 in Year 4. For tax purposes, warrant costs are not deductible until paid. At December 31, Year 1, deferred taxes should be based on a:
- A. US $ 120,000 deductible temporary difference
- B. US $ 120,000 taxable temporary difference
- C. US $ 150,000 taxable temporary difference
- D. US $ 150,000 deductible temporary difference
Answer: A
Explanation:
At year-end year 1, Health entities should report a US $120,000 warranty liability in its balance sheet. The warranty liability is equal to the US $150,000 warranty expense minus the US $30,000 warrant cost actually incurred in Year 1. Because warranty costs are not deductible until paid, the tax base of the warranty liability is 0. The result is a US $120,000 temporary difference US$120,000 carrying amount tax base). When the liability is settled through the actually incurrence of warranty costs, the amounts will be deductible. Thus, the temporary difference should be classified as a deductible temporary difference.
NEW QUESTION 64
Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?
- A. Threats and opportunities.
- B. Governance.
- C. Performance.
- D. Risk tolerance.
Answer: B
NEW QUESTION 65
Which of the following is a typical example of structured data?
- A. Tweets and posts of users on social media.
- B. Sales reports documented in word processing software.
- C. Production information maintained in relational tables.
- D. Photos and videos stored in hard drive catalogs.
Answer: C
NEW QUESTION 66
The practice of recording advance payments from customers as a liability is an example of applying the:
- A. Historical cost principle.
- B. Going concern assumption.
- C. Revenue recognition principle.
- D. Monetary unit assumption.
Answer: C
Explanation:
Recognition of revenue occurs when the flow of future economic benefits to the enterprise is probable and such benefits are reliably measurable. Recording advance payments as a Ii ability reflects a determination that the receipt of future economic benefits is not sufficiently certain to merit revenue recognition, given that the enterprise has not yet performed its obligations.
NEW QUESTION 67
Which of the following professional organizations sets standards for quality and environmental audits?
- A. The International Standards Organization.
- B. The Board of Environmental, Health, and Safety Auditor Certifications.
- C. The Committee of Sponsoring Organizations of the Treadway Commission.
- D. The International Organization of Supreme Audit Institutions.
Answer: A
NEW QUESTION 68
According to MA guidance on IT which of the following best describes a but recovery and restore processes have not been defined?
- A. Absence of recovery plan
- B. Cold recovery plan.
- C. Warm recovery plan
- D. Hot recovery plan
Answer: A
NEW QUESTION 69
A cost-volume-profit model developed in a dynamic environment determined that the estimated parameters used may vary between limits. Subsequent testing of the model with respect to all possible values of the estimated parameters is termed:
- A. Statistical estimation.
- B. A sensitivity analysis.
- C. A time-series study.
- D. Statistical hypothesis testing.
Answer: B
Explanation:
After a problem has been formulated into any mathematical model, it may be subjected to sensitivity analysis. Sensitivity analysis is a method for studying the effects of changes in one or more variables on the results of a decision model.
NEW QUESTION 70
When auditing an application change control process, which of the following procedures should be included in the scope of the audit?
1. Ensure system change requests are formally initiated, documented, and approved.
2. Ensure processes are in place to prevent emergency changes from taking place.
3. Ensure changes are adequately tested before being placed into the production environment.
4. Evaluate whether the procedures for program change management are adequate.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1 only
- D. 1, 3, and 4 only
Answer: D
NEW QUESTION 71
An inventory planning method that minimizes inventories by arranging to have raw materials and subcomponents arrive immediately preceding their use is called:
- A. An economic order quantity model.
- B. A master budgeting system.
- C. A. just-in-time inventory system.
- D. safety stock planning system.
Answer: C
Explanation:
JIT is a manufacturing philosophy popularized by the Japanese that combines purchasing, production, and inventory control. As with MFP, minimization of inventory is a goal; however, JIT also encompasses changes in the production process itself. An emphasis on quality and a "pull" of materials related to demand are key differences between JIT and MFP.
The factory is organized so as to bring materials and tools close to the point of use rather than keeping them in storage areas. A key element of the JIT system is reduction or elimination of waste of materials, labor, factory space, and machine usage. Minimizing inventory is the key to reducing waste. V1lhen a part is needed on the production line, it arrives just in time, not before. Daily deliveries from suppliers are the ultimate objective, and some Japanese users have been able to get twice-daily deliveries.
NEW QUESTION 72
The sales manager for a builder of custom yachts developed the following conditional table for annual production and sales:
According to the table, how many yachts should be built?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
To achieve the maximum expected profit. 30 yachts should be built. For each level of production, multiply the probability of demand by the expected profit. The computation for the maximum is: 0.1 (-US $10) + 0.2($10) + 0.5($30) + 0.2($30) = US $22.
NEW QUESTION 73
The chart displays the:
- A. Arithmetic mean of each computer complaint.
- B. Absolute frequency of each computer complaint.
- C. Median of each computer complaint.
- D. F elative frequency of each computer complaint.
Answer: B
Explanation:
This Pareto diagram depicts the frequencies of complaints in absolute terms. It displays the actual number of each type of complaint. The chart does not display arithmetic means, relative frequencies, or medians of each type of complaint.
NEW QUESTION 74
At the beginning of Year 1 a company began work on a 3-year construction contract.
This contract is accounted for by the percentage-of-completion method for financial accounting purposes and the completed-contract method for tax purposes. Dun l fig "(par 1, the company reported US $800,UUU of in from this contract. However, because of cost overruns incurred in Year 2 the company reported a US $500,000 loss from this contract. What should the company's Year 2 balance sheet include?
- A. Option A
- B. Option C
- C. Option B
- D. Option D
Answer: D
Explanation:
A deferred tax liability is recognized for the deferred tax consequences attributable to most taxable temporary differences. A deferred tax asset is recognized for the deferred tax consequences attributable to most deductible temporary differences but only to the probable that taxable profit will be available to permit the use of those amounts.
AL the end of Year the cumulative effect of the difference in accounting for financial reporting and tax purposes is a US $300.000$800,000 - $500,000) temporary difference Because this US $300,000 temporary difference will result in future taxable amounts, it is a taxable temporary difference for which a deferred tax liability is recognized.
The following relates to PLC for Year 1 and Year 2.
Profit before income taxes in Year 1 included rent income of US $80,000 that was not subject to income tax until its receipt in Year 2.
Lally was subject to an effective income tax rate of 40% in Year 1 and Year 2.
NEW QUESTION 75
For a multinational organization, which of the following is a disadvantage of an ethnocentric
staffing policy?
1.It significantly raises compensation and staffing costs.
2.It produces resentment among the organization's employees in host countries.
3.It limits career mobility for parent-country nationals.
4.It can lead to cultural myopia.
- A. 2 and 3 only
- B. 1, 2, and 3 only
- C. 1, 2, and 4 only
- D. 1 and 4 only
Answer: C
NEW QUESTION 76
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.
- A. 1, 2, 3, and 4
- B. 1 and 3 only
- C. 2 and 4 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION 77
......
Verified IIA-CIA-Part3 Exam Dumps Q&As - Provide IIA-CIA-Part3 with Correct Answers: https://www.torrentvce.com/IIA-CIA-Part3-valid-vce-collection.html
IIA-CIA-Part3 Exam Questions | Real IIA-CIA-Part3 Practice Dumps: https://drive.google.com/open?id=1KT6FlAyj-MUO7-Czo_qqWN-MvIWMLNFZ