[Oct 24, 2024] IIA-CIA-Part3 PDF Questions and Testing Engine With 344 Questions
Updated Exam Engine for IIA-CIA-Part3 Exam Free Demo & 365 Day Updates
IIA-CIA-Part3 exam consists of 100 multiple-choice questions, which candidates must complete within three hours. IIA-CIA-Part3 exam's content is divided into four domains: Business Acumen, Information Security, Information Technology (IT), and Financial Management. Candidates must demonstrate their understanding of these domains by answering questions on topics such as risk management, auditing project management, IT governance, and financial analysis. Passing the exam requires a minimum score of 600 out of a possible 750 points. Business Knowledge for Internal Auditing certification is highly respected in the industry and demonstrates that an auditor has a comprehensive understanding of the business landscape and the risks associated with it.
IIA CIA Part 3 Exam Preparation Tips That Will Help You Study Smarter
In the last article of this series, we discussed the CIA Part 3 exam tips that will help you in your exam preparation. Now, you know what to do before the exam and what not to do before the exam. In this article, we are going to share some more tips that will help you in your CIA Part 3 exam preparation. IIA CIA Part 3 exam dumps are the great way to demonstrate your skills and expertise.
We recommend taking all our study materials into consideration. Try our free tests and remember that 97% of people who used our certification questions successfully passed the final exam. Welcome to Pass4guide where we deliver certification questions with answers and explanations to help students obtain their certification by using our Online Web Simulator and Mobile App. In our premium courses subscription access and download product demo PDF, and we are providing verified preps content with incredible cognitive managerial flagged authorization to overcome the exchange rates of failure. Install required mail currency code to save hours.
NEW QUESTION # 44
To be more responsive to its customers, a bank wants a system that will permit account representatives to consolidate information about all the a-r-punts belonging to individual customers. Bank management is willing to experiment with different approach approaches because the requirements are evolving rapidly. The best development approach for this system is:
- A. Hierarchy-input-process-output
- B. System development life cycle model.
- C. Prototyping.
- D. Structured analysis and design technique.
Answer: C
Explanation:
Prototyping is an approach that involves creating a working model of the system requested, demonstrating it for the user, obtaining feedback. and making changes to the underlying code. This process repeats through several iterations until the user is satisfied with the system's functionality. Formerly, this approach was derided as being wasteful of resources and tending to produce unstable systems, but with vastly increased processing power and high-productivity development tools. prototyping can, in some cases, be an efficient means of systems development.
NEW QUESTION # 45
Which of the following techniques would be least effective in resolving the conflict created by an internal audit client's perception of the audit report as a personal attack on his management performance?
- A. The auditor should focus on the audit client as a person and understand him, rather than just concentrating on the problem.
- B. The auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.
- C. The auditor should explore alternative solutions to address the audit problem, so the audit client has options.
- D. The auditor should take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.
Answer: A
NEW QUESTION # 46
What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for the coming year?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup casts. Thus, plugging the data into the EOQ formula results in the following: C:\Documents and Settings\usernwz1\Desktop\1.PNG
Thus, if each lot consists of 1,000 units, five production runs per year are needed to meet the 5,000-unit demand. At this level, setup costs will total US $5,000 5 x $1,000). Carrying costs will also equal US $5,000 10 per unit carrying cost average inventory of 500 units).
Accordingly, total costs are minimized at US $10,000. Jed Ryerson Computer Furniture, Inc. RCF) manufactures a line of office computer chairs. The annual demand for the chairs is estimated to be 5,000 units. The annual cost tic. hold one unit in inventory is US $10 per year, and the cost to initiate a production run is US $1,000. There are no computer chairs on hand, and RCF has scheduled four equal production runs of computer chairs for the coming year, the first of which is to be run immediately. RCF has 250 business days per year, sales occur uniformly throughout the year, and production start-up is within one day. RCF is considering using the following formula for determining the economic order quantity EOQ):
If: A = cast to initiate a production run per purchase order D = annual unit demand K = cost of carrying one unit per year
NEW QUESTION # 47
A key advantage of developing a computer application by using the prototyping approach is that it:
- A. Better involves users in the design process.
- B. Allows applications to be portable across multiple system platforms.
- C. Is less expensive since it is self-documenting.
- D. Does not require testing for user acceptance.
Answer: A
NEW QUESTION # 48
All of the following are alternative marketable securities suitable for investment except:
- A. Commercial paper.
- B. Eurodollars.
- C. U.S. Treasury bills.
- D. Convertible bonds.
Answer: D
Explanation:
Marketable securities are near-cash items used primarily for short-term investment. Examples include U.S. Treasury bills, Eurodollars. commercial paper, money-market mutual funds with portfolios of short-term securities, bankers' acceptances, floating rate preference stock, and negotiable CDs of U.S. banks. A convertible bond is not a shortterm investment because its maturity date is usually more than one year in the future and its price can be influenced substantially by changes in interest rates or by changes in the investee's stock price.
NEW QUESTION # 49
The receipt of raw materials used in the manufacture of products and the shipping of finished goods to customers is under the control of the warehouse supervisor. The warehouse supervisor's time is spent approximately 60% on receiving activities and 40% on shipping activities. Separate staffs for the receiving and shipping operations are employed. The labor-related costs for the warehousing function are as follows:
The company employs a responsibility accounting system for performance reporting purposes. The costs are classified on the report as period or product costs. The total labor related costs that would be listed on the responsibility accounting performance report as product costs under the control of the warehouse supervisor for the warehousing function would be:
- A. US $771,000
- B. US $130,000
- C. US $97,500
- D. US $128,700
Answer: C
Explanation:
The responsibility accounting report should list only the costs over which the warehousing supervisor exercises control. The supervisor's salary should therefore be excluded because it is controlled by the warehouse supervisor's superior. Moreover only the product costs are to be considered. These exclude the shipping clerks' wages and fringe benefits because they are period costs shipping is a selling expense). Thus, the only product cost under the control of the warehouse supervisor is the receiving clerks' wages US $75,000) and the related fringe=_ benefits US $75,000 x = $22,500), or a total of US $97,500.
NEW QUESTION # 50
On February 1, Year 1, a computer software firm agrees to program a software package.
Twelve payments of US $1 0.000 on the first of each month are to be made, with the first payment March 1, Year 1. The software is accepted by the client June 1, Year 2. How much Year 1 revenue should be recognized?
- A. US $110.01,0
- B. US $100.000
- C. US $0
- D. US $120.000
Answer: C
Explanation:
Recognition of an element of financial statements income, which includes revenue and gains) requires that two criteria be met. It must be probable that any future economic benefit associated with the item will flow to or from the entity, and the cost or value of the item must be measurable with reliability. The usual procedures for income recognition. e.g., that income be earned, reflect these criteria. Thus, income is recognized when an increase in future economic benefits is associated with an increase in an asset or a decrease in a liability. However, the entity has not substantially completed what it must do to be entitled to the benefits represented by the advance payment, and the receipt of future economic benefits is not sufficiently certain to merit income recognition.
Accordingly, a liability should be recognized because the entity has a current obligation arising from a past event that will require an outflow of economic benefits, that is, to deliver the software or to refund the customer's money. Thus, a liability for US $100,000 and revenue of US $0 should be recognized for Year I NOTE: This analysis assumes that the sale of the software is a sale either of goods or of services for which the appropriate conditions have not been met. Under IRS 18, Revenue Recognition, revenue is recognized for a sale of goods when the entity has transferred the significant risks and rewards of ownership, the entity has neither continuing managerial involvement to a extent associated with ownership nor effective control over the goods, the amount can be reliably measured, it is probable that the economic benefits will flow to the entity, and transaction costs can be reliably measured. For a sale of services, revenue is recognized when revenue can be reliably measured, it is probable that the economic benefits will flow to the entity, the stage of completion can be reliably measured, and the costs incurred and the costs to complete can be reliably measured.
NEW QUESTION # 51
An entity donated land to a municipal for a park. cost of the land was US $75,000, and the market value at the time of the donation was US $2, as determined by a professional
appraisal if the entity has not chosen to adopt the cost model for- n' r ant of property plant, and equipment subsequent to initial recognition, the journal entry to record the dial of the land is:
- A. Option B
- B. Option C
- C. Option D
- D. Option A
Answer: B
Explanation:
An item of PPE is carried at cost minus any accumulated depreciation and impairment losses. Under the allowed alternative treatment an item of PPE may be carried at a revalued amount equal to fair value at the revaluation date minus any subsequent accumulated depreciation and impairment losses_ Land is not depreciated, so it should be carried at its amount. This amount should be determined by a professional appraisal. The revaluation increased the carrying amount and is therefore credited directly to equity a situation surplus. Accordingly, the entry is to debit land and credit revaluation for US $125.000. The entire surplus may be transferred to retained Earnings but not through profit or loss) when the asset is derecognize Upon on the asset should be removed from the balance sheet.
NEW QUESTION # 52
Which one of the following temporary differences will result in a deferred tax asset?
- A. Advance rental receipts accounted for on the accrual basis for financial statement purposes and on a cash basis for tax purposes.
- B. Installment sale profits accounted for on the accrual basis for determining accounting profit and on a cash basis for determining taxable profit tax loss.
- C. Prepaid expenses accounted for on the accrual basis for determining accounting profit and on a cash basis for determining taxable profit tax loss.
- D. Use of the straight-line depreciation method for determining accounting profit and an accelerated method for determining taxable profit tax loss.
Answer: A
Explanation:
A deferred tax asset records the deferred tax consequences attributable to deductible temporary differences and carry forwards Advance rental receipts accounted for on the actual basis for determining accounting profit and on a cash basis for determining taxable profit tax loss) would give rise to a deferred tax asset. The financial statements would show no income and no related tax expense because the rental payments apply to future periods. The tax return, however, would show the rent as income when the cash was received, and a tax would be due in the year of receipt. Because the tax is paid prior to recording accounting profits, it represents an asset that will be no due in the year of receipt. Because the tax is paid to prior to recording accounting profits, it represents an asset that will be recognized as an expense when income me is finally recorded.
NEW QUESTION # 53
The economic order quantity can be calculated using the following formula:
Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?
- A. Decrease by about 7 percent.
- B. Increase by about 7 percent.
- C. Decrease by about 17 percent.
- D. Increase by about 17 percent.
Answer: D
NEW QUESTION # 54
In an economic order quantity (EOQ) model, both the costs per order and the holding costs are estimates. If those estimates are varied to determine how much the changes affect the optimal EOQ, such an analysis would be called a:
- A. Forecasting model.
- B. Decision analysis.
- C. Sensitivity analysis.
- D. Critical path method analysis.
Answer: C
Explanation:
An economic order quantity (EOQ) sensitivity analysis involves varying the holding (carrying) costs per unit and/or the order costs to determine how much the changes affect the optimal EOQ.
NEW QUESTION # 55
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
- A. Identifying the risks affecting the organization, the objectives, and then the processes concerned.
- B. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.
- C. Analyzing the organization's strategic plan where the business processes are defined.
- D. Identifying the processes at the activity level.
Answer: B
NEW QUESTION # 56
The 88mpany has an opportunity to promote one of its product lines by making a one-time US $7,000 expenditure. The company can choose only one of the three product lines to promote. The incremental sales revenue that would be realized from this US $7,000 promotion expenditure in each of the product lines is estimated as follows:
In order to maximize profits, the promotion expenditure should be spent on <List A>, resulting in an increase in operating income of <List B>.
- A. Option B
- B. Option D
- C. Option C
- D. Option A
Answer: B
Explanation:
Fixed costs should be ignored. Thus, the increase in sales revenue should be multiplied by the contribution margin ratio for each product line. The incremental promotion cost US $7,000) is subtracted from this amount to determine the marginal benefit of promoting each product line. Hence, Product Line 3 has an increased profit of US$1,120.
The company buys the goods in the three product lines directly from manufacturers' representatives. Each product line is directed by a manager whose salary is included in the administrative expenses. Administrative expenses are allocated to the three product lines equally because the administration is spread evenly among the three product lines.
Salaries represent payments to the workers in each product line and therefore are traceable costs of each product line. Advertising promotes the entire company rather than the individual product lines. As a result, the advertising is allocated to the three product lines in proportion to the sales revenue. Commissions are paid to the salespersons in each product line based on 2% of gross sales. Rent represents the cost of the retail store and warehouse under a lease agreement with 5 years remaining. The product lines share the retail and warehouse space, and the rent is allocated to the three product lines based on the square footage occupied by each of the product lines.
NEW QUESTION # 57
On the year-end financial statements, the company will report cost of goods sold of:
- A. US $670.000
- B. US $620,000
- C. US $900,000
- D. US $440,000
Answer: D
Explanation:
Cost of goods sold equals begin rag inventory. plus purchases. m us ending inventory.
Hence cost of goods sold is US $440,000$ 140.000 + $530.000 - $230,000).
NEW QUESTION # 58
As organizations become more computer integrated, management is becoming increasingly concerned with the quality of access controls to the computer system. Which of the following provides the most accountability?
- A. Option IV.
- B. Option II.
- C. Option III.
- D. Option I.
Answer: D
Explanation:
Access should be limited to those whose activities necessitate access to the computer
system. Moreover, the degree of access allowed should be consistent with an individual's responsibilities. Restricting access to particular individuals rather than groups or departments clearly establishes specific accountability. Not everyone in a group will need access or the same degree of access. Thus, passwords assigned to individuals should be required for identification of users by the system. Furthermore, data should be restricted at the field level, not the workstation level. It may be possible to limit access to a workstation, but most workstations are connects -d t. larger mainframe or network databases. Thus, the security at the workstation level only would be insufficient.
NEW QUESTION # 59
......
Passing the IIA-CIA-Part3 exam demonstrates that an individual has a comprehensive understanding of business concepts and their application to internal auditing. It also demonstrates a commitment to professional development and a desire to enhance one's skills and knowledge. Business Knowledge for Internal Auditing certification opens up new career opportunities and increases earning potential. Overall, the IIA-CIA-Part3 certification is a valuable asset for internal auditors looking to advance their careers in the business world.
Exam Passing Guarantee IIA-CIA-Part3 Exam with Accurate Quastions: https://www.pass4guide.com/IIA-CIA-Part3-exam-guide-torrent.html
Test Engine to Practice Test for IIA-CIA-Part3 Valid and Updated Dumps: https://drive.google.com/open?id=1tOq06bQ0H_iqcfheAxV-uW8mRh5Qd2PD