[Dec 03, 2024] IIA IIA-CIA-Part3 Exam Dumps Are Essential To Get Good Marks
Latest IIA IIA-CIA-Part3 Dumps with Test Engine and PDF (New Questions)
NEW QUESTION # 138
An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?
- A. Elimination.
- B. Sharing.
- C. Reduction.
- D. Avoidance.
Answer: C
Explanation:
Explanation
NEW QUESTION # 139
An enterprise-wide resource planning ERP) system integrates the organization's computerized subsystems and may also provide links to external parties. An advantage of ERP is that:
- A. It can be installed by organizations of all sizes.
- B. The reengineering needed for its implementation should improve business processes.
- C. The comprehensiveness of the system reduces resistance to change.
- D. Customizing the software to suit the unique needs of the organization will facilitate upgrades.
Answer: B
Explanation:
The benefits of ERP may significantly derive from the business process reengineering that is needed for its implementation. Using ERP software that reflects the best practices forces the linked subunits in the organization not only to redesign and improve their processes but also to conform to one standard.
NEW QUESTION # 140
Which of the following inventory costing methods requires the organization to account for the actual cost paid for the unit being sold?
- A. Last-in-first-Out (LIFO}.
- B. Average cost.
- C. First-in-first-out (FIFO).
- D. Specific identification
Answer: C
NEW QUESTION # 141
In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners. Which of the following network types is illustrated by this scenario?
- A. A local area network.
- B. A metropolitan area network.
- C. A value-added network.
- D. A wide area network.
Answer: C
NEW QUESTION # 142
How do temporary and permanent differences between taxable income and pre-tax financial income differ?
- A. Temporary differences include items that enter into prepay financial income but never into taxable income.
- B. Only temporary differences have deferred tax consequences
- C. Temporary differences do not give rise to future taxable or deductible amounts.
- D. Only permanent differences have deferred tax consequences
Answer: B
Explanation:
Permanent differences have no deferred tax consequences because they affect only the period in which they occur. Permanent differences include1) items that enter into pre-tax financial income but never into taxable income and2) items that enter into taxable income but never into pre-tax financial income. In contrast, temporary differences result in taxable or deductible amounts in some future year(s), when the reported amount of assets are recovered and the reported amount of liabilities are settled. Temporary differences therefore do have deferred tax consequences while permanent differences do not.
NEW QUESTION # 143
An entity has publicly announced a detailed, formal plan to dispose in its entirety of a component of the entity that represents a separate major line of business that is distinct operationally and financially. Which of the following is the proper treatment of the disclosures that should be made after the announcement?
- A. As a discontinued operation.
- B. As a prior-period item.
- C. As part of continuing operations.
- D. As an extraordinary item.
Answer: A
Explanation:
A separate major line of business or geographical operating area that is distinct for operational and reporting purposes is a component of an entity. Thus, its disposal qualifies to be reported.
NEW QUESTION # 144
Which of the following activities most significantly increases the risk that a bank will make poor-quality loans to its customers?
- A. Loan officers may override the lending criteria established by senior management.
- B. The bank's loan documentation may not meet the government's disclosure requirements.
- C. Fees paid by the borrower at the time of the loan may not be deposited in a timely manner.
- D. Borrowers may not sign all required mortgage loan documentation.
Answer: A
NEW QUESTION # 145
Which of the following statements about activity-based costing ABC) is false?
- A. Activity-based costing is useful for allocating marketing and distribution costs.
- B. Activity-based costing differs from traditional costing systems in that products are cross-subsidized.
- C. In activity-based costing, cost drivers are what cause costs to be incurred.
- D. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
Answer: D
Explanation:
ABC determines the activities that will serve as cost objects and then accumulates a cost pool for each activity using the appropriate activity base cost driver). It is a system that may be employed with job order or process costing methods. Thus, when there is only one product, the allocation of costs to the product is trivial. All of the cost is assigned to the one product; the particular method used to allocate the costs does not matter.
NEW QUESTION # 146
In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?
- A. Coaching management in responding to risk.
- B. Developing the risk management strategy for the board's approval.
- C. Giving assurance that risks are evaluated correctly.
- D. Facilitating the identification and evaluation of risks.
Answer: C
NEW QUESTION # 147
Which of the following control frameworks was acknowledged by the U.S. Securities and Exchange Commission as an appropriate model for designing internal controls under the requirements of the Sarbanes-Oxley Act of 2002?
- A. COBIT
- B. COSO
- C. eSAC
- D. GTAG
Answer: B
Explanation:
The importance and durability of the COSO Framework was reinforced when the U.S. Securities and Exchange Commission acknowledged it as an appropriate model for designing internal controls under the requirements of the Sarbanes-Oxley Act of 2002.
NEW QUESTION # 148
After implementing EDI with suppliers, a company discovered a dramatic increase in the prices it paid the single supplier of some special materials for its primary product line. After consulting with the supplier, the company determined that the supplier had assumed the risk of not having inventory and raised its prices accordingly since the company was the only buyer for the special materials. The best approach for managing inventory in this situation is for the company to:
- A. Demand that the supplier reduce the prices of the materials.
- B. Give the supplier more information about expected use of the materials.
- C. Change its product line so the special materials are no longer needed.
- D. Find another supplier to replace the one charging higher prices.
Answer: B
Explanation:
If the company gives the supplier more information about use of the materials, the supplier may be able to plan its production more effectively. It could then reduce its inventory of the materials and its inventory costs, thus permitting it to charge a lower price.
NEW QUESTION # 149
An internal auditor is evaluating an organization's business continuity management program According to the guidance on IT. which of the following tests would best demonstrate the ability to perform Key processes without significant problems?
- A. IT systems and application walkthrough
- B. Desk check testing
- C. Tabletop or boardroom-style testing
- D. End-to-end testing
Answer: D
NEW QUESTION # 150
Which of the following is an important senior management responsibility with regard to information systems security?
- A. Training employees in security matters.
- B. Assigning access privileges.
- C. Assessing exposures.
- D. Identifying ownership of data.
Answer: C
Explanation:
Senior management is responsible for risk assessment, including identification of risks and consideration of their significance, the likelihood of their occurrence, and how they should be managed. Senior management is also responsible for establishing organizational policies regarding computer security and implementing a compliance structure. Thus, senior management should assess the risks to the integrity, confidentiality, and availability of information systems data and resources.
NEW QUESTION # 151
Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?
- A. Decentralized organizations tend to be less expensive to operate.
- B. Decentralized organizations are more focused on organizational goals.
- C. Decentralized organizations tend to be more responsive to market changes.
- D. Decentralized organizations streamline organizational structure.
Answer: C
NEW QUESTION # 152
While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix.
The manager has asked the auditor for advice about increasing advertising of various products. During which stage of the life cycle would it be appropriate to advertise that the company's product is the lowest price and best quality of all competitors?
- A. Decline stage.
- B. Growth stage.
- C. Maturity stage.
- D. Introduction stage.
Answer: C
Explanation:
The maturity stage is the ideal time for advertising lower prices and superior quality because this is the period during a product's life when competition is greatest. Due to the availability of many alternatives or substitutes, a firm has reasons to set itself apart. Because price and quality are both concerns of customers during the maturity stage, it is ideal for the firm to differentiate its product by advertising low prices and higher quality.
NEW QUESTION # 153
The following information applies to an entity. Purchases Sales:
A cash payment equal to 40% of purchases is made at the time of purchase, and 30% is paid in each of the next 2 months. Purchases for the previous November and December were US $150,000 per month. Payroll is 10% of sales in the month it occurs, and operation expenses are 20% of the following month's sales July sales were US $220,000). Interest payments were US , " x,000 paid quarterly in January and April.
What were the entity's cash disbursements for the month of April?
- A. US $200,000
- B. US $254,000
- C. US $152,000
- D. US $140,000
Answer: B
Explanation:
The cash disbursements for the month of April include 40% of April purchases, 30% of March purchases, 30% of February purchases, April payroll 10% of April sales), operating expenses 20 I of May sales), and an interest payment of US $20.000.
NEW QUESTION # 154
An attacker, posing as a bank representative, convinced an employee to release certain, financial information that ultimately resulted in fraud. Which of the following best describes this cybersecurity risk?
- A. Phishing.
- B. Shoulder suiting
- C. Social engineering.
- D. Pharming,
Answer: A
NEW QUESTION # 155
Two countries have flexible e change rate systems and an active trading relationship. If incomes <List A> in country 1, everything else being equal, then the currency of country 1 will tend to <List B> relative to the currency of country 2.
- A. Option B
- B. Option D
- C. Option C
- D. Option A
Answer: C
Explanation:
If incomes in country 1 rise, consumers in country 1 will increase their imports from country
2. The resulting increase in the supply of currency 1 will result in a tendency for it to depreciate relative to the currency of country 2.
NEW QUESTION # 156
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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Exam is an important certification exam offered by the Institute of Internal Auditors (IIA) for internal auditors seeking to enhance their knowledge and skills in the field of business. IIA-CIA-Part3 exam is designed to test the candidate's ability to apply business concepts and principles to internal audit activities, and it covers a broad range of business topics, including finance, accounting, economics, marketing, and management.
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