Easily To Pass New IIA IIA-CIA-Part3 Dumps with 344 Questions
Latest IIA-CIA-Part3 Study Guides 2023 - With Test Engine PDF
NEW QUESTION 32
Multinational organizations generally spend more time and effort to identify and evaluate:
- A. Internal risk factors.
- B. Internal strengths and weaknesses.
- C. Break-even points.
- D. External trends and events.
Answer: D
NEW QUESTION 33
When managing cash and short-term investments, a corporate treasurer is primarily concerned with:
- A. Liquidity and safety.
- B. Maximizing rate of return.
- C. Minimizing taxes.
- D. Investing in government bonds since they have no default risk.
Answer: A
Explanation:
Cash and short-term investments are crucial to an entity's continuing success. Sufficient liquidity must be available to meet payments as they come due. At the same time, liquid assets are subject to significant control risk. Therefore, liquidity and safety are the primary concerns of the treasurer when dealing with highly liquid assets. Cash and short term investments are held because of their ability to facilitate routine operations of the entity.
These assets are not held for purposes of achieving investment returns.
NEW QUESTION 34
A capital investment project will have a higher net present value, everything else being equal, if it has:
- A. Cash inflows that are larger in the later years of the life of the project.
- B. A higher discount rate.
- C. Cash inflows that are larger in the earlier years of the life of the project.
- D. A higher initial investment level.
Answer: C
NEW QUESTION 35
The EOQ economic order quantity) model calculates the cost-minimizing quantity of a product to order, based an a constant annual demand, carrying costs per unit per annum, and cost per order. For example, the EOQ is approximately 447 units if the annual demand is 10,000 units, carrying costs are US $1 per item per annum, and the cost of placing an order is US $10. What will the EOQ be if the demand falls to 5,000 units per annum and the carrying and ordering costs remain at US $1 and US $10, respectively?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
The ECQ formula is
X = (2AD/K)1/2
NEW QUESTION 36
In a process-costing system, the cost of abnormal spoilage should be:
- A. Prorated between units transferred out and ending inventory
- B. Included in the cost of units transferred out.
- C. Ignored.
- D. Treated as a loss in the period incurred.
Answer: D
Explanation:
Abnormal spoilage is spoilage that is not expected to occur under normal, efficient operating conditions. Because of its unusual nature, abnormal spoilage is typically treated as a loss in the period in which it is incurred. Believing that its traditional cost system may be providing misleading information, an organization is considering an activity-based costing ABC) approach. It now employs a full cost system and has been applying its manufacturing overhead on the basis of machine hours. The organization plans on using
50.000 direct labor hours and 30.000 machine hours in the coming year. The following data show the manufacturing overhead that is budgeted.
Cost, sales, and production data for one of the organization' s products for the coming year are as follows:
NEW QUESTION 37
As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized cate?
- A. The auditor ensured data fields were consistent and that data could be used for a specific purpose.
- B. The auditor organized data to minimize useless information.
- C. The auditor made data usable for a specific purpose by ensuring that anomalies were Identified and corrected.
- D. The auditor eliminated duplicate information.
Answer: B
NEW QUESTION 38
Factoring is the:
- A. Adjustment of inventories on financial statements for supplies that have become obsolete.
- B. Selling of accounts receivable by one entity to another.
- C. Conversion of accounts receivable to bad debt on financial statements for accounts that are long overdue.
- D. Selling of inventory by one entity to another.
Answer: B
Explanation:
A factor purchases an entity's accounts receivable and assumes the risk of collection. The seller receives money immediately to reinvest in new inventories. The financing cost is usually high: about 2 points or more above prime, plus a fee for collection. Factoring has been traditional in the textile industry for years, and recently companies in many industries have found it an efficient means of operation. An entity that uses a factor can eliminate its credit department, accounts receivable staff, and bad debts. These reductions in costs can more than offset the fee charged by the factor, which can often operate more efficiently than its clients because of the specialized nature of its service.
NEW QUESTION 39
A company provides fertilization, insect control, and disease control services for a variety of trees, plants, and shrubs on contract basis. For US $50 per month, the company will visit the subscriber's premises and apply appropriate. If the subscriber has any problem between the regularity scheduled application dates, the company's personal will promptly make additional service calls to correct the situation. Some subscribers elect to pay for an entire year because the company offers an annual price of 115 $540 if paid in advance. For a subscriber who pays the annual fee in advance, the company should recognize the related revenue.
- A. When the cash is collected.
- B. Evenly over the year as the services are performed.
- C. At the end of the contract year after all of the services have been performed.
- D. At the end of the fiscal year.
Answer: B
Explanation:
Income, which includes revenue and gains, should not be recognized until an increase in future economic benefits related to an increase in an asset or a decrease in a liability is sufficiently certain and can be measure I reliably. I-he most common time at which these two conditions are met is when the product or merchandise is delivered services are rendered to customers. In the situation presented the performance of the service monthly spraying) is so significant to creating a sufficient certainty of an increase in future economic benefits that revenue should not be recognized until delivery occurs.
NEW QUESTION 40
Two major retail companies, both publicly traded and operating in the same geographic area, have recently merged. The companies are approximately the same size and have audit departments. Company A has little EDI experience. Company B has invested heavily in information technology and has EDI connections with its major vendors. Which of the following is the least important risk factor considering the ability to integrate the two companies' computer systems?
- A. The number of programmers and systems analysts employed by each company.
- B. The extent of EDI connections with vendors.
- C. The compatibility of existing operating systems and database structures.
- D. The size of company databases and the number of database servers used.
Answer: A
Explanation:
The number of systems personnel employed may reflect differences in operating philosophy (outsourcing vs. in-house development of applications). However, the number of personnel in each company is a less serious concern than the compatibility of hardware and software.
NEW QUESTION 41
A major benefit of computer integrated manufacturing CIM) is:
- A. Increased amount of scrap available for resale.
- B. Increased working capital.
- C. Increased flexibility.
- D. Delivery of customized products with long lead times.
Answer: C
Explanation:
CIM entails a holistic approach to manufacturing in which design is translated into product by centralized processing and robotics. CIM can help an organization reduce costs of spoilage, increase flexibility, and increase productivity. Flexibility is the key benefit. A traditional manufacturing system might become disrupted from an emergency change, but CII1 will reschedule everything in the plant when a priority requirement is inserted into the system.
NEW QUESTION 42
A desired result of the sharing of information by all functions and organizations in the supply chain is:
- A. Incompatibility of the information systems of the parties.
- B. Fewer rush orders.
- C. Maximization of inventories held by suppliers, manufacturers, and retailers.
- D. Stockouts.
Answer: B
Explanation:
Sharing information about sales, inventory, pricing, advertising campaigns, and sales forecasts by all functions and organizations in the supply chain moderates demand uncertainty for all parties. The desired results are (1) minimization of inventories held by suppliers, manufacturers, and retailers; (2) avoidance of stockouts; (3) fewer rush orders; and (4) production as needed by retailers.
NEW QUESTION 43
Which of the following authentication controls combines what a user knows with the unique characteristics of the user respectively?
- A. Fingerprint and voice recognition
- B. Voice recognition and token.
- C. Password and fingerprint.
- D. Password and token
Answer: C
NEW QUESTION 44
Which of the following are appropriate functions for an IT steering committee?
1. Assess the technical adequacy of standards for systems design and programming.
2. Continually monitor of the adequacy and accuracy of software and hardware in use.
3. Assess the effects of new technology on the organization`s IT operations.
4. Provide broad oversight of implementation, training, and operation of new systems.
- A. 1, 3, and 4
- B. 2, 3, and 4
- C. 1, 2, and 4
- D. 1, 2, and 3
Answer: B
NEW QUESTION 45
When ranking two mutually exclusive investments with different initial amounts, management should give first priority to the project:
- A. Whose net after-tax flows equal the initial investment.
- B. That has the greater profitability index.
- C. That has the greater accounting rate of return.
- D. That generates cash flows for the longer period of time.
Answer: B
Explanation:
The profitability excess present value) index facilitates the comparison of investments that have different initial costs. The profitability index equals the present value of future net cash inflows divided by the initial cash investment. The investment with the greater profitability index will be the preferred investment. However, if investments are mutually exclusive, the net present value method may be the better way of ranking project. The excess present value, index indicates the be return per dollar invested but does not consider the alternate', , possibilities for unused Funds. Thus, the small mutually exclusive projects may have the higher n~ is but the incremental investment in the larger project may make it the better choice. For example, a US $8,000,000 project may be a better use of funds than a combination of a US $6.000.000 project with a higher ,rx and the best alternative use of the remaining US $2,000,000. A company has the following three investment projects available:
The company has a 40% debt and 60% equity capital structure. Each monetary unit of investment funds will be raised in these proportions .40 of debt and .60 of equity). The marginal cost of financing increases with the amount of new funds raised, as follows:
These investment opportunities and financing costs are shown in the graph below:
MCC=Marginal cost of capital IOS=Investment opportunity schedule
NEW QUESTION 46
Image processing systems have the potential to reduce the volume of paper circulated throughout an organization. To reduce the likelihood of users relying on the wrong images, management should ensure that appropriate controls exist to maintain the:
- A. Initial sequence of index data.
- B. Legibility of image data.
- C. Integrity of index data.
- D. Accessibility of image data.
Answer: C
Explanation:
Data integrity is a protectibility objective. If index data for image processing systems are corrupted, users will likely be relying on the wrong images.
NEW QUESTION 47
On what basis is value-added tax collected?
- A. The difference between the selling price of a real estate property and the amount the entity originally paid for the property.
- B. The value of an entity's sales to related companies.
- C. The profit earned on an entity's sales.
- D. The difference between the value of an entity's sales and the value of its purchases from other domestic entities.
Answer: D
Explanation:
A value-added tax VAT) is collected on the basis of the value created by the entity. This tax is measured by the difference between the value of the entity's sales and the value of its purchases. A VAT is in effect a retail sales tax. Because a consumer can avoid the tax by not purchasing, a VAT encourages saving and discourages consumption.
NEW QUESTION 48
......
Prerequisites of IIA CIA Part 3 Exam
IIA CIA Part 3 Prerequisites - Bachelor's degree from an accredited college or university or a non-U.S. equivalent, at least five years of professional experience in internal auditing, and have attained the age of 21. Or have a combination of education and/or professional experience that provides for the same level of knowledge.
IIA CIA Experience Requirements - At least two years of professional experience in internal auditing, governance, risk management, control, or related experience in one or more areas examined by the CIA exam.
IIA-CIA-Part3 Dumps and Exam Test Engine: https://www.itexamdownload.com/IIA-CIA-Part3-valid-questions.html
Get New IIA-CIA-Part3 Practice Test Questions Answers: https://drive.google.com/open?id=1Hj0AujsT4GJEyNcPNRPorMZTXWBhQ1dK