IIA IIA-CIA-Part3 Exam Dumps [2023] Practice Valid Exam Dumps Question
IIA-CIA-Part3 Dumps - Grab Out For [NEW-2023] IIA Exam
The IIA-CIA-Part3 exam is a challenging examination that requires the candidate to have a strong grasp of business knowledge and concepts. The exam is intended to measure the candidate's ability to apply these principles to internal auditing. Furthermore, the exam covers various topics, from data analytics to financial management, which requires the candidate to have a broad understanding of business essentials.
In order to be eligible to take the IIA-CIA-Part3 exam, candidates must have completed the IIA-CIA-Part1 and IIA-CIA-Part2 exams or have obtained a waiver. They must also meet the IIA's experience requirements, which vary depending on their educational background. Overall, the IIA-CIA-Part3 certification exam is a challenging but rewarding certification that can help internal auditors take their careers to the next level.
NEW QUESTION # 144
All of the following are true with regard to the first-in, first-out inventory valuation method except:
- A. It approximates the physical flow of goods.
- B. It generates the highest profit when prices are rising.
- C. It values inventory close to current replacement cost.
- D. It minimizes current-period income taxes.
Answer: D
NEW QUESTION # 145
Which of the following best describes an objective for an audit of an environmental management system?
- A. To promote environmental awareness.
- B. To evaluate executive management oversight.
- C. To determine conformance with requirements and agreements.
- D. To assess whether an annual control review is necessary.
Answer: C
NEW QUESTION # 146
In calculating diluted earnings per share when an entity has convertible bonds outstanding, the weighted- average number of ordinary shares outstanding must be <List Ax to adjust for the conversion feature of the bonds, and the profit attributable to ordinary shareholders must be <List Be by the amount of interest expense on the bonds, net of tax.List A List B
- A. Increased Decreased
- B. Decreased Increased
- C. Increased Increased
- D. Decreased Decreased
Answer: C
Explanation:
The weighted-average number of ordinary shares outstanding must be increased to7 reflect the shares into which the bonds could be converted. Also, the effect of the bond interest on profit attributable to ordinary shareholders profit after subtracting preference dividends) must be eliminated. In this way, diluted earnings per share is calculated as if the bonds had been converted into ordinary shares as of the start of the year.
NEW QUESTION # 147
An internal auditor considers the financial statement of an organization as part of a financial assurance engagement. The auditor expresses the organization's electricity and depreciation expenses as a percentage of revenue to be 10% and 7% respectively. Which of the following techniques was used by the internal auditor In this calculation?
- A. Horizontal analysis
- B. Trend analysis
- C. Ratio analysis
- D. Vertical analysis
Answer: D
NEW QUESTION # 148
A major justification for investments in computer-integrated manufacturing (CIM) projects is:
- A. Reduction in the costs of spoilage, reworked units, and scrap.
- B. Stabilization of market share.
- C. Lower carrying amount and depreciation expense for factory equipment.
- D. Increased working capital.
Answer: A
Explanation:
Automating and computerizing production processes requires a substantial investment in fixed assets and an increase in risk because of greater fixed costs. CIM also necessitates an increase in software costs and extensive worker retraining. However, the costs of spoilage, rework, and scrap are reduced along with labor costs. The qualitative advantages of CIM are increased flexibility, shorter manufacturing lead time, quicker development of new products, better product delivery and service, faster response to market changes, and improved competitiveness.
NEW QUESTION # 149
In a responsibility accounting system, managers are accountable for
- A. Product costs but not for period costs.
- B. Incremental costs.
- C. Variable costs but not for fixed costs.
- D. Costs over which they have significant influence_
Answer: D
Explanation:
The most desirable measure for evaluating a departmental manager is one that holds the
manager responsible for the revenues and expenses s)he can control. Controllability is the basic concept of responsibility accounting.
NEW QUESTION # 150
While reviewing the contracts for a large city, the internal auditor learns that the organization contracted to perform trash collection is paid based on the number of bins emptied each week As a result, the city has minimal control over payments Which of the following actions should the auditor recommend to give the city greater control over payments?
- A. Renegotiate a lump-sum contract when the contract is up for renewal
- B. Change the contract so payment is based on the distances traveled by the contractor during collection.
- C. Require that the contractor provide supervisory review of the number of bins emptied each day
- D. Assign a city employee to verify the number of bins emptied each day
Answer: A
NEW QUESTION # 151
Which of the following statements is correct regarding risk analysis?
- A. The extent to which management judgments are required in an area could serve as a risk factor in assisting the auditor in making a comparative risk analysis.
- B. The highest risk assessment should always be assigned to the area with the largest potential loss.
- C. The highest risk assessment should always be assigned to the area with the highest probability of occurrence.
- D. Risk analysis must be reduced to quantitative terms in order to provide meaningful comparisons across an organization.
Answer: A
NEW QUESTION # 152
The entity had net purchases for the period of;
- A. US $376.111111
- B. US $346.111111
- C. US $370.111111
- D. US $340.111111
Answer: D
NEW QUESTION # 153
Data encryption is an example of which of the following controls?
- A. Data output control
- B. IT general control
- C. Application control.
- D. Data input control
Answer: B
NEW QUESTION # 154
An entity is currently being sued by a customer. A reliable estimate can be made of the costs that would result from a ruling unfavorable to the entity, and the amount involved is material. The entity's managers, lawyers, and auditors agree that the likelihood of an unfavorable ruling is remote. This contingent liability:
- A. Should be disclosed in a note.
- B. Need not be disclosed.
- C. Should be disclosed by an appropriation of retained earnings.
- D. Should be disclosed as a parenthetical comment in the balance sheet.
Answer: B
Explanation:
A contingent liability includes a present obligation for which an outflow of resources embodying economic benefits is not probable. A contingent liability is not recognized but is disclosed unless the possibility of the outflow is remote.
NEW QUESTION # 155
Which of the following is a benefit from the concept of Internet of Things?
- A. Employees can choose from a variety of devices they want to utilize to privately read work emails without their employer's knowledge.
- B. Information can be extracted more efficiently from databases and transmitted to relevant applications for in-depth analytics.
- C. Physical devices, such as thermostats and heat pumps, can be set to react to electricity market changes and reduce costs.
- D. Data mining and data collection from internet and social networks is easier, and the results are more comprehensive
Answer: C
NEW QUESTION # 156
A decrease in inventory order costs will
- A. Decrease the economic order quantity.
- B. Increase the reorder point.
- C. Increase the economic order quantity.
- D. Decrease the holding cost percentage.
Answer: A
Explanation:
A decrease in inventory ordering costs should decrease the economic order quantity. The effect is that more orders can be made of smaller quantities) without increasing costs.
Accordingly, in the EOQ model, ordering cost is a numerator value.
NEW QUESTION # 157
What are the objectives of governance as defined by the Standards?
- A. Inform, direct, manage, and monitor.
- B. Add value, improve, assure, and conform.
- C. Organize, assign, authorize, and implement.
- D. Identify, assess, manage, and control.
Answer: A
NEW QUESTION # 158
Which of the following project scheduling techniques is commonly used in total quality management for simplifying work processes?
- A. Gantt charts.
- B. Critical path method.
- C. Flowcharting.
- D. Program evaluation and review technique.
Answer: C
Explanation:
Flowcharting is commonly used in computer programming for determining program logic and in total quality management for simplifying work processes. However, they are also used for establishing the desirable sequence of activities and decisions.
NEW QUESTION # 159
An internal auditor is trying to assess control risk and the effectiveness of an organization's internal controls. Which of the following audit procedures would not provide assurance to the auditor on this matter?
- A. Interviewing the organization's employees.
- B. Inspecting manuals and documents.
- C. Reading the board's minutes.
- D. Observing the organization's operations.
Answer: C
NEW QUESTION # 160
An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?
- A. 110 days.
- B. 26 days.
- C. 90 days.
- D. 100 days.
Answer: C
NEW QUESTION # 161
Which of the following statements is true regarding outsourced business processes?
- A. The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.
- B. Generally, independence is improved when the internal audit activity reviews outsourced business processes.
- C. The system of internal controls may be better and more efficient when the business process is outsourced compared to internally sourced.
- D. Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.
Answer: C
NEW QUESTION # 162
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The IIA-CIA-Part3 certification exam covers a broad range of topics related to business knowledge, including business acumen, financial management, information technology, and strategic management. The exam is designed to test the knowledge and skills of internal auditors in these areas and to ensure that they are able to apply this knowledge in their work.
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