[2024] Use Valid Exam IIA-CIA-Part3 by ValidTorrent Books For Free Website
Free Certified Internal IIA-CIA-Part3 Official Cert Guide PDF Download
Understanding IIA CIA Part 3 Exam Topics
- Information security (25%)
- Business acumen (35%)
- Financial management (20%)
- Information technology (20%)
IIA-CIA-Part3 exam is a computer-based test that consists of 100 multiple-choice questions. Candidates have 2.5 hours to complete the exam, and they must score at least 600 out of 800 to pass. IIA-CIA-Part3 exam is offered at Pearson VUE testing centers around the world and can be taken in English, Spanish, Portuguese, or Chinese.
NEW QUESTION # 89
Based on a comparison of RST's quick ratios in Year 5 and Year 6, what is a likely conclusion?
- A. RST's ability to meet short-term financing needs has improved since Year 5.
- B. RST has improved its management of long-term investments in Year 6.
- C. RST has written off obsolete inventory in Year 6.
- D. RST's ability to meet short-term financing needs has declined since Year 5.
Answer: D
Explanation:
RST's quick ratio decreased from 2.5 in Year 5 [(US $4,000 cash + $2,000 financial assets held for trading + $14,000 net AIR] + $8,000] to 2.0 in Year 6 [(US $5,000 + $3,000 + $16,000) $12,000]. RST has fewer assets that are easily convertible to cash available to meet current liabilities. Thus, its ability to meet short-term financing needs has declined. RST Corporation's Income Statement for Year 5 and Year 6
NEW QUESTION # 90
A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:
- A. Product departmentalization.
- B. Matrix organization.
- C. Divisional organization.
- D. Functional departmentalization.
Answer: D
NEW QUESTION # 91
Which of the following security controls would provide the most efficient and effective authentication for customers to access these online shopping account?
- A. Two-level sign-on feature
- B. Voice recognition feature.
- C. Security question feature.
- D. 12-digit password feature.
Answer: A
NEW QUESTION # 92
A traditional quality control process in manufacturing consists of mass inspection of goods only at the end of a production process. A major deficiency of the traditional control process is that:
- A. It is expensive to do the inspections at the end of the process.
- B. It does not focus on improving the entire production process.
- C. It is not 100% effective.
- D. It is not possible to rework defective items.
Answer: B
Explanation:
The process used to produce the goods is not thoroughly reviewed and evaluated for efficiency and effectiveness. Preventing defects and increasing efficiency by improving the
production process raises quality standards and decreases costs.
NEW QUESTION # 93
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 take a flexible position on the recommendations and focus on resolving the issue by addressing the interests of the people concerned.
- C. The auditor should explore alternative solutions to address the audit problem, so the audit client has options.
- D. The auditor should make recommendations based on objective criteria, rather than based on a subjective assessment.
Answer: A
NEW QUESTION # 94
Whenever an entity must use net realizable value rather than cost to value an inventory
item, the inventory account is reduced and the account "expense due to decline of inventory to net realizable value" is increased. The balance of this account is reflected as a separate item on the:
- A. Income statement as an operating expense.
- B. Income statement as a deduction from gross profit on sales.
- C. Income statement as an extraordinary loss.
- D. Balance sheet as a deduction from inventory.
Answer: B
Explanation:
If a separate expense account is not used, the ending inventory will be reduced directly and the result will be an increase in cost of goods sold. No separate disclosure of the inventory write down will appear in the income statement. The effect is to hide the loss in cost of goods sold. If the separate expense account is used, it appears on the income statement as a deduction from gross profit sales - cost of goods sold). One advantage is that cost of goods sold is not misstated. At the end of the accounting period, an entity has the partially completed financial statements shown as follows.
NEW QUESTION # 95
Which of the following is an objective of logical security controls for information systems?
- A. To ensure complete and accurate processing of data.
- B. To provide an audit trail of the results of processing.
- C. To restrict access to specific data and resources.
- D. To ensure complete and accurate recording of data.
Answer: C
Explanation:
The primary objective of security controls for information systems is to restrict access to data and resources both hardware and software) to only authorized individuals.
NEW QUESTION # 96
Which of the following professional organizations sets standards for quality and environmental audits?
- A. The International Standards Organization.
- B. The Board of Environmental, Health, and Safety Auditor Certifications.
- C. The International Organization of Supreme Audit Institutions.
- D. The Committee of Sponsoring Organizations of the Treadway Commission.
Answer: A
NEW QUESTION # 97
Which one of the following is least likely to be recommended by the auditor when an EDIEFT system is being designed?
- A. The identity of the individual approving an electronic document should be stored as a data field.
- B. Remote access to electronic data should be denied.
- C. Disaster recovery plans should be established.
- D. Data security procedures should be written to prevent changes to data by unauthorized individuals
Answer: B
Explanation:
One of the benefits of an EDI-EFT system is that it can provide remote access at any time from any place if telecommunications links are available. However, appropriate controls should prevent unauthorized access. A multinational company has an agreement with a value-added network VAN) that provides the encoding and communications transfer for the company's electrons.. data interchange EDI) and electronic funds transfer EFT) transactions. Before transfer of data to the VAN, the company performs online preprocessing of the transactions. The internal auditor is responsible for assessing preprocessing controls. In addition, the agreement between the company and the VAN states that the internal auditor is allowed toe :amine and report on the controls in place at the VAN on an annual basis. The contract specifies that access to the VAN can occur on a surprise basis during the second or third quarter of the company's fiscal year. This p n I was -hosen so it would not interfere with processing during the VAN's peak transaction periods. This provision was riot reviewed with internal auditing. The annual audit plan approved by the board of directors specifies that a full audit would be done during the current year.
NEW QUESTION # 98
Traditional information systems development and operational procedures typically involve four functional areas. The systems analysis function focuses on identifying and designing systems to satisfy organizational requirements. The programming function is responsible for the design, coding, testing, and debugging of computer programs necessary to implement the systems designed by the analysis function. The computer operations function is responsible for data preparation, program/job execution, and system maintenance. The user function provides the input and receives the output of the system.
Which of these four functions is often poorly implemented or improperly omitted in the development of a new end-user computing EUC application?
- A. User function.
- B. Computer operations function.
- C. Programming function.
- D. Systems analysis function.
Answer: D
Explanation:
Systems analysis is one step that is not absolutely required in the development of a system. The desire to produce a system quickly may result in this step being eliminated or poorly implemented. A system is often produced and then analyzed to see if it will satisfy the needs of the organization. In an EUC application, the systems analysis is often incomplete or omitted.
NEW QUESTION # 99
In mergers and acquisitions, which of the following is an example of a horizontal combination?
- A. A baker taking over a competitor.
- B. A petroleum processing company acquires an agro-processing firm.
- C. Dairy manufacturing company taking over a large dairy farm.
- D. A movie producer acquires movie theaters.
Answer: A
NEW QUESTION # 100
Which of the following can be classified as debt investments?
- A. Investments in the capital stock of a corporation
- B. Acquisition of common stock of a corporation
- C. Acquisition of government bonds.
- D. Contents of an investment portfolio,
Answer: C
NEW QUESTION # 101
An organization has instituted a bring-your-own-device (BYOD) work environment Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?
- A. Use management software to scan and then prompt patch reminders when devices connect to the network
- B. Limit the use of the employee devices for personal use to mitigate the risk of exposure to organizational data.
- C. Institute detection and authentication controls for all devices used for network connectivity and data storage
- D. Ensure that relevant access to key applications is strictly controlled through an approval and review process
Answer: C
NEW QUESTION # 102
An entity had the following selected per-unit data relating to work-in-process:
Selling price US $100
Comparison cost 10
Historical cost 91
Replacement cost 108
Normal gross profit 20
Selling cost 5
In comparison with historical cost, what will be the per-unit impact on gross profit of measuring ending inventory?
- A. Increase of US $5.
- B. No effect
- C. Reduction of US %6.
- D. Reduction of US $26
Answer: C
Explanation:
Inventories are measured at the lower of cost or net realizable value NRV). NRV equals selling price minus completion and selling costs. Given that historical cost is US $91 and NRV is US $84price of $100 - $100 - $10 completion cost - $5 selling cost, the effect on per-unit gross profit is a reduction of US $6. This amount is the write down expensed.
NEW QUESTION # 103
A corporation manufactures two brands of barbed wire fencing for sale to wholesalers and large ranchers. Which of the following would be the best type of costing system for such a company to use?
- A. Retail inventory system.
- B. Jo b-order system
- C. EOQ system.
- D. Process system
Answer: D
Explanation:
A process costing system is used when a company mass produces a standardized product on a continuous basis. The production department becomes the cost center.
NEW QUESTION # 104
At the beginning of Year 1 a company began work on a 3-year construction contract.
This contract is accounted for by the percentage-of-completion method for financial accounting purposes and the completed-contract method for tax purposes. Dun l fig "(par 1, the company reported US $800,UUU of in from this contract. However, because of cost overruns incurred in Year 2 the company reported a US $500,000 loss from this contract. What should the company's Year 2 balance sheet include?
- A. Option B
- B. Option D
- C. Option C
- D. Option A
Answer: B
Explanation:
A deferred tax liability is recognized for the deferred tax consequences attributable to most taxable temporary differences. A deferred tax asset is recognized for the deferred tax consequences attributable to most deductible temporary differences but only to the probable that taxable profit will be available to permit the use of those amounts.
AL the end of Year the cumulative effect of the difference in accounting for financial reporting and tax purposes is a US $300.000$800,000 - $500,000) temporary difference Because this US $300,000 temporary difference will result in future taxable amounts, it is a taxable temporary difference for which a deferred tax liability is recognized.
The following relates to PLC for Year 1 and Year 2.
Profit before income taxes in Year 1 included rent income of US $80,000 that was not subject to income tax until its receipt in Year 2.
Lally was subject to an effective income tax rate of 40% in Year 1 and Year 2.
NEW QUESTION # 105
When evaluating the help desk services provided by a third-party service provider which of the following is likely to be the internal auditor's greatest concern?
- A. Whether the provider's responses and resolutions were well defined according to the service-level agreement.
- B. Whether every call that the service provider received was logged by the help desk.
- C. Whether a unique identification number was assigned to each issue identified by the service provider
- D. Whether the service provider used its own facilities to provide help desk services
Answer: A
NEW QUESTION # 106
When a perpetual inventory system is used and a difference exists between the perpetual inventory amount balance and the physical inventory count. a separate entry is needed to adjust the perpetual inventory amount. Which of the following demonstrates that adjusting entry?
- A. Extraordinary loss due to write-down of inventory Allowance for inventory shortages
- B. Extraordinary loss due to write-down of inventory
- C. Cost of goods sold Retained earnings appropriated for shortages
- D. Inventory over and short Inventory
Answer: D
Explanation:
The entry to record a write-down is a debit to inventory over and short and a credit to inventory. This amount is reported as an adjustment of cost of goods sold or as an other expense on the income statement.
NEW QUESTION # 107
A company experienced a machinery breakdown on one of its production lines. As a consequence of the breakdown, manufacturing fell behind schedule, and a decision was made to schedule overtime to return manufacturing to schedule. Which one of the following methods is the proper way to account for the overtime paid to the direct laborers?
- A. The overtime hours times the overtime premium would be charged to manufacturing overhead and the overtime hours times the straight-time wages would be treated as direct labor.
- B. The overtime hours times the overtime premium would be charged to repair and maintenance expense, and the overtime hours times the straight-time wages would be treated as direct labor.
- C. The overtime hours times the sum of the straight-time wages and overtime premium direct labor.
- D. The overtime hours times the sum of the straight-time wages and overtime premium entirely to manufacturing overhead.
Answer: A
Explanation:
Direct labor costs are wages paid to labor that can feasibly be specifically identified with the production of finished goods. Factory overhead consists of all costs, other than direct materials and direct labor that are associated with the manufacturing process. Thus, straight-time wages would be treated as direct labor; however, because the overtime premium cost is a cost that should be borne by all production, the overtime hours times the overtime premium should be charged to manufacturing overhead.
NEW QUESTION # 108
Which of the following are essential elements of the audit trail in an electronic data interchange EDI) system?
- A. Trading partner security and mailbox codes.
- B. Network and sender/recipient acknowledgments.
- C. Message directories and header segments.
- D. Contingency and disaster recovery plans.
Answer: B
Explanation:
An audit trail allows for the tracing of a transaction from initiation to conclusion. Network and sender/recipient acknowledgments relate to the transaction flow and provide for the tracking of transactions.
NEW QUESTION # 109
The ending inventory balance under the first-in, first-out-FIFO) method of inventory valuation is:
- A. US $3,230 D US $3.430
- B. US $3,150
- C. US $3,050
Answer: B
Explanation:
Under the FIFO method, the 1.700 units of ending inventory are valued at the most recent prices. Ending inventory is assumed to include 1.000 units purchased November 24. 500 units purchased May 5. and 700 units purchased January 12. Hence, the ending inventory is US $3.150 [(1 .000 x $1 65) +500 $2.21') +700 x $2.00)].
Additional Information
The entity had no opening inventory.
The Items sold on March 15 were purchased on January 12.
The items sold on July 3 war purchased on May 5
NEW QUESTION # 110
......
IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Exam is an important certification exam for individuals seeking to become certified Internal Auditors. IIA-CIA-Part3 exam is conducted by the Institute of Internal Auditors (IIA), which is an international professional association headquartered in Florida, USA. The IIA-CIA-Part3 Exam covers various topics related to business knowledge and internal auditing, and passing it is a significant step towards becoming a certified Internal Auditor.
IIA IIA-CIA-Part3 Official Cert Guide PDF: https://troytec.validtorrent.com/IIA-CIA-Part3-valid-exam-torrent.html