File Info
| Exam | Certified Internal Auditor - Part 3, Business Analysis and Information Technology |
| Number | IIA-CIA-Part3 |
| File Name | IIA.IIA-CIA-Part3.ActualTests.2018-10-23.125q.vcex |
| Size | 104 KB |
| Posted | Oct 23, 2018 |
| Download | IIA.IIA-CIA-Part3.ActualTests.2018-10-23.125q.vcex |
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Demo Questions
Question 1
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
- The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
- The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
- The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
- 50 percent of total organizational cost has been allocated on a volume basis.
Correct answer: D
Question 2
Which of the following control techniques would minimize the risk of interception during transmission in an electronic data interchange system?
- Encryption.
- Traffic padding.
- Edit checks.
- Structured data format.
- 1 and 2 only
- 2 and 3 only
- 3 and 4 only
- 1, 2, and 3 only
Correct answer: A
Explanation:
Question 3
Refer to the exhibit.
The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?
- 21 days.
- 22 days.
- 27 days.
- 51 days.
Correct answer: C
Question 4
Which of the following is a characteristic of just-in-time inventory management systems?
- Users determine the optimal level of safety stocks.
- They are applicable only to large organizations.
- They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.
- They rely heavily on high quality materials.
Correct answer: D
Question 5
The economic order quantity for inventory is higher for an organization that has:
- Lower annual unit sales.
- Higher fixed inventory ordering costs.
- Higher annual carrying costs as a percentage of inventory value.
- A higher purchase price per unit of inventory.
Correct answer: B
Question 6
What must be monitored in order to manage risk of consumer product inventory obsolescence?
- Inventory balances.
- Market share forecasts.
- Sales returns.
- Sales trends.
- 1 only
- 4 only
- 1 and 4 only
- 1, 2, and 3 only
Correct answer: C
Explanation:
Question 7
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:
- Use an aging schedule to more closely estimate uncollectible accounts.
- Eliminate the need for an allowance for doubtful accounts.
- Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.
- Use a method that approximates the matching principle.
Correct answer: D
Question 8
Preferred stock is less risky for investors than is common stock because:
- Common stock pays dividends as a stated percentage of face value.
- Common stock has priority over preferred stock with regard to earnings and assets.
- Preferred dividends are usually cumulative.
- Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.
Correct answer: C
Question 9
All of the following are possible explanations for a significant unfavorable material efficiency variance except:
- Cutbacks in preventive maintenance.
- An inadequately trained and supervised labor force.
- A large number of rush orders.
- Production of more units than planned for in the master budget.
Correct answer: D
Question 10
When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
- Each nation's total imports approximately equal its total exports.
- Each good is produced by the nation that has the lowest opportunity cost for that good.
- Goods that contribute to a nation's balance-of-payments deficit are no longer imported.
- International trade is unrestricted and tariffs are not imposed.
Correct answer: B
