Oct-2021 Latest PDF4Test IIA-CIA-Part3 Exam Dumps with PDF and Exam Engine Free Updated Today!
Following are some new IIA-CIA-Part3 Real Exam Questions!
NEW QUESTION 104
Which of the following statements about COBIT is not true?
- A. COBIT control objectives are specific to various IT platforms and help determine minimum controls.
- B. COBIT helps management understand and manage the risks associated with information technology (IT) processes.
- C. COBIT provides management with the capability to conduct self-assessments against industry best practices.
- D. Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.
Answer: A
NEW QUESTION 105
An organization accomplishes its goal to obtain a 40 percent share of the domestic market, but is unable to get the desired return on investment and output per hour of labor. Based on this information, the organization is most likely focused on which of the following?
- A. Efficiency and not input economy.
- B. Marketing and not capital investment.
- C. Capital investment and not marketing.
- D. Effectiveness and not efficiency.
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION 106
The greatest advantage of functional departmentalization is that it:
- A. Provides for efficient use of specialized knowledge .
- B. Facilitates communication between primary functions.
- C. Accommodates geographically dispersed companies
- D. Helps to focus on the achievement of organizational goals.
Answer: A
NEW QUESTION 107
Within an enterprise, IT governance relates to the:
1.Alignment between the enterprise's IT long term plan and the organization's objectives.
2.Organizational structures of the company that are designed to ensure that IT supports the
organization's strategies and objectives.
3.Operational plans established to support the IT strategies and objectives.
4.Role of the company's leadership in ensuring IT supports the organization's strategies
and objectives.
- A. 3 and 4 only
- B. 2, 3, and 4 only
- C. 1 and 2 only
- D. 1, 2, and 4 only
Answer: D
NEW QUESTION 108
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 D
- B. Option C
- C. Option A
- D. Option B
Answer: B
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 109
The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as
- A. Failure costs.
- B. Appraisal costs.
- C. Rework costs.
- D. Prevention costs.
Answer: B
Explanation:
Appraisal embraces such activities as statistical quality control programs, inspection, and testing. Appraisal costs are those costs such as test equipment maintenance and destructive testing) incurred to detect which products do not conform to specifications.
NEW QUESTION 110
An entity had cash receipts from sales of US $175,000 during year 2, of which US
$30,000 was unearned at the end of Year 2. At the end of Year 1, the company had US $40,000 of deferred revenue, all of which was earned in Year 2. The company's sales revenue for Year 2 would be:
- A. US $185,000
- B. US $165,000
- C. US $175,000
- D. US $145,000
Answer: A
Explanation:
The sales revenue earned in Year 2 equals Year 2 cash receipts, minus any receipts in Year 2 for which the revenue was deferred, plus the revenue earned from cash receipts in Year 1. or US $185,000$175,000 - $30,000 $40,000).
NEW QUESTION 111
Which of the following is an element of effective negotiating?
- A. Considering a few select choices during the settlement phase.
- B. Focusing on interests rather than on obtaining a winning position.
- C. Basing the agreement on negotiating power and positioning leverage.
- D. Ensuring that the other party has a personal stake in the agreement.
Answer: B
NEW QUESTION 112
Which of the following may provide a leading indicator of a future increase in gross domestic product?
- A. An increase in the average hours worked per week of production workers.
- B. A decrease in the issuance of building permits.
- C. An increase in the timeliness of delivery by vendors.
- D. A reduction in the money supply.
Answer: A
Explanation:
An economic indicator is highly correlated with changes in aggregate economic activity. A leading indicator changes prior to a change in the direction of the business cycle. The leading indicators included in the Conference Board's index are average weekly hours worked by manufacturing workers, unemployment claims, consumer goods orders, stock prices, orders for fixed assets, building permits, timeliness of deliveries, money supply, consumer confidence, and the spread between the yield on 10-year Treasury bonds and the federal funds rate. An increase in weekly hours worked by production workers is favorable for economic growth.
NEW QUESTION 113
Which of the following stages of group development is associated with accepting team responsibilities?
- A. Performing stage.
- B. Norming stage.
- C. Forming stage.
- D. Storming stage.
Answer: B
NEW QUESTION 114
The share split proposal will <List A> earnings per share by <List B> than will the share
- A. Option D
- B. Option C
- C. Option A
- D. Option B
Answer: B
Explanation:
The share split will double the number of shares outstanding to 2,000. The 10% share dividend will increase the number of outstanding shares to 1,111. The higher number of shares in the split will result in a lower earnings per share than will result from the share dividend. An entity has issued 1,000 ordinary shares with a par value of US$10 and its credit balance in retained earnings is US $5,000. Two proposals are under consideration. The first is a share split giving each shareholder two new shares for each share formerly held. The second is to declare and distribute a 10% share dividend.
NEW QUESTION 115
Which of the following would be a reasonable basis for allocating the material handling costs to the units produced in an activity-based costing system?
- A. Amount of overhead applied to each completed unit.
- B. Amount of time required to produce one unit.
- C. Number of production runs per year.
- D. Number of components per completed unit.
Answer: D
Explanation:
An essential element of activity-based costing ABC) is driver analysis which identifies the cause-and-effect relationship between an activity and its consumption of resources and for an activity and the demands made on it by a cost object. There is a direst causal relationship between the number of components in a finished product and the amount of material handling cost incurred:
NEW QUESTION 116
What is the method of presenting a noncontrolling interest in a consolidated balance sheet?
- A. By means of notes to the balance sheet.
- B. As a deduction from contra to goodwill from consolidation if any.
- C. As a separate item within the equity section.
- D. As a separate item within the deferred credits section.
Answer: C
Explanation:
A noncontrolling is classified as an equity account and separated from the equity of majority shareholders within that section.
NEW QUESTION 117
Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level Maintenance Cost
Month Patient Days Incurred January 5,600 $7,900
February 7,100 $8,500
March 5,000 $7,400
April 6,500 $8,200
May 7,300 $9,100
June 8,000 $9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?
- A. Fixed cost.
- B. Patient days.
- C. Variable cost.
- D. Total maintenance cost.
Answer: B
NEW QUESTION 118
Change control typically includes procedures for separate libraries for production programs and for test versions of programs. The reason for this practice is to:
- A. Facilitate user input on proposed changes.
- B. Segregate incompatible duties.
- C. Permit unrestricted a access to programs.
- D. Promote efficiency of system development
Answer: B
Explanation:
Separating production and test versions of programs facilitates restricting access to production programs to the individuals, such as computer operators, who need access. The effect is to separate the incompatible functions of operators and programmers.
NEW QUESTION 119
Which of the following is most important for an internal auditor to check with regard to the database version?
- A. Verify whether the database software version has been recently upgraded
- B. Verify whether access to database version information is appropriately restricted
- C. Verify whether the organization uses the most recent database software version
- D. Verify whether the database software version is supported by the vendor.
Answer: D
NEW QUESTION 120
Which of the following would not impair the objectivity of internal auditor?
- A. Implementing risk responses on behalf of management.
- B. Management assurance on risks.
- C. Providing assurance that risks assessed are correctly evaluated.
- D. Setting the risk appetite.
Answer: C
NEW QUESTION 121
Which one of the following items is not directly reflected in the basic economic order quantity (EOQ) model?
- A. Inventory obsolescence.
- B. Quantity discounts lost on inventory purchases
- C. Interest on invested capital.
- D. Public warehouse rental charges.
Answer: B
Explanation:
The basic EOQ model minimizes the sum of ordering (or setup) and carrying costs. Included in the formula are annual demand, ordering (or setup) costs, and carrying costs. Carrying costs include warehousing costs, insurance, spoilage, obsolescence, and interest on invested capital. The cost of the inventory itself and any quantity discounts lost on inventory purchases are not components of the EOQ model.
NEW QUESTION 122
Which of the follov5ring is used in determining the economic order quantity ECQ)?
- A. Calculus.
- B. Regression analysis.
- C. Markov process.
- D. Queuing theory
Answer: A
Explanation:
The primary business application of differential calculus is to identify the maxima or minima of curvilinear functions. In business and economics, these are the points of revenue or profit maximization maxima) or cost minimization minima). The Eli results from differentiating the total cost with regard to order quantity.
NEW QUESTION 123
The problem just described is best approached by use of which quantitative method?
- A. Exponential smoothing, multiple parameters.
- B. Integrated autoregressive-moving average (ARIMA) modeling.
- C. Linear programming.
- D. Queuing theory.
Answer: D
Explanation:
Two basic costs are involved in queuing (waiting-line) models: (1) the cost of providing service (including facility costs and operating costs), and (2) the cost of idle resources waiting in line. The latter may be a direct cost if paid employees are waiting, or an opportunity cost in the case of waiting customers. The objective of the queuing theory is to minimize the total cost of the system, including both service and waiting costs, for a given rate of arrivals. This minimization occurs at the point where the cost of waiting is balanced by the cost of providing service.
NEW QUESTION 124
Which of the following brings in additional capital to the entity?
- A. Exercise of options purchased through an option exchange
- B. Conversion of convertible bonds to ordinary shares
- C. Exercise of warrants.
- D. Two-for-one share split.
Answer: C
Explanation:
Warrants are options that permit the holder to buy shares for a stated price. Their exercise results in inflows and the issuance of shares.
NEW QUESTION 125
A global business organization is selecting managers to post to various international (expatriate) assignments. In the screening process, which of the following traits would be required to make a manager a successful expatriate?
1.Superior technical competence.
2.Willingness to attempt to communicate in a foreign language.
3.Ability to empathize with other people.
- A. 2 and 3 only
- B. 1 and 3 only
- C. 1, 2, and 3
- D. 1 and 2 only
Answer: A
NEW QUESTION 126
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