Download IIA-CIA-Part3 Exam Dumps Questions to get 100% Success in IIA
100% Accurate Answers! IIA-CIA-Part3 Actual Real Exam Questions
IIA IIA-CIA-Part3 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
| Topic 5 |
|
| Topic 6 |
|
| Topic 7 |
|
| Topic 8 |
|
NEW QUESTION 91
Which of the following most accurately describes the purpose of application authentication controls?
- A. To prevent or detect errors in data processed using business applications.
- B. To ensure that business applications are protected from unauthorized logical access.
- C. To ensure the validity, accuracy, and completeness of outputs from business applications.
- D. To ensure that data input into business applications is valid, complete, and accurate.
Answer: B
NEW QUESTION 92
The audit committee of a global corporation has mandated a change in the organization's business ethics policy. Which of the following approaches describes the best way to accomplish the policy's diffusion worldwide?
- A. Deploy the policy in the corporate headquarters' language, so everyone gets an unfiltered version simultaneously.
- B. Send the board-approved version of the policy to each country's senior leadership, and empower them to tailor the policy to the local language and culture.
- C. Introduce the policy region by region, using any lessons learned to change the subsequent version of the policy for the next area.
- D. Consult with legal and operational management in each affected country to ensure the final version can be implemented globally, following audit committee approval.
Answer: D
NEW QUESTION 93
An organization's network administrator received an email that appeared to come from the organization's external IT service provider requesting his credentials to perform an update of a server operating system If the IT service provider did not send the email, which of the following best describes the likely purpose of the email?
- A. An attempt at phishing.
- B. An attempt to launch malware
- C. An attempt to patch the server
- D. An attempt at penetration testing
Answer: A
NEW QUESTION 94
When a specified level of safety stock is carried for an item in inventory, the average inventory level for that item:
- A. Increases by one-half the amount of the safety stock.
- B. Is one-half the level of the safety stock.
- C. Decreases by the amount of the safety stock.
- D. Increases by the amount of the safety stock.
Answer: D
Explanation:
If there is no safety stock, the average level of inventory will be one-half of the economic order quantity. For example, if the EOQ is 500, the basic model predicts that the average inventory level will be 250. The company will have 500 units immediately after a purchase and zero immediately before the receipt of the next purchase replenishment is assumed to be instantaneous). However, safety stock increases the average inventory level by the amount of the safety stock. The modified EOQ model assumes that safety stock will never be used.
Thus, if a safety stock of 100 is carried by the company in the example, the average inventory level will increase to 350. Inventory will be 600 units immediately upon receipt of a purchase and 100 units immediately before the receipt of the next purchase.
NEW QUESTION 95
The present value of US $100,000 due at the end of eight years at 10% is US $46.650.
What is the approximate value of US $100.000 invested for the same length of time and at the same rate?
- A. US $114.360
- B. US $46.650
- C. US $100,000
- D. US $214,360
Answer: D
Explanation:
The present value of a future amount equals that amount divided by the interest factor for the given discount period and discount rate. The interest factor for the present value of I due in 8 years and discounted at 10% is 2.1436US $100,000 $46,650). Thus the future value of US $100.000 must be US $214.360$100.008 x 1436).
NEW QUESTION 96
In an organization that produces chocolate, the leadership team decides that the organization will open a milk production facility for its milk chocolate. Which of the following strategies has the organization chosen?
- A. Vertical integration.
- B. Differentiation.
- C. Unrelated diversification.
- D. Focus.
Answer: A
NEW QUESTION 97
Which of the following is an element of effective negotiating?
- A. Basing the agreement on negotiating power and positioning leverage.
- B. Considering a few select choices during the settlement phase.
- C. Focusing on interests rather than on obtaining a winning position.
- D. Ensuring that the other party has a personal stake in the agreement.
Answer: C
NEW QUESTION 98
According to IIA guidance, which of the following is the correct order to conduct a business impact analysis (BIA) for the potential loss of an organization's network services''
1. identify resources and partners to provide required recovery services
2. Identify the business processes supporting the network functionality
3. Obtain approval of the BIA from the operating managers relative to their areas of responsibility
4. Identify the business impact if the network services cannot be performed
- A. 1, 2, 3, 4
- B. 2, 4, 1, 3
- C. 4, 2, 1, 3
- D. 2, 1, 4, 3
Answer: D
NEW QUESTION 99
The economic order quantity is the size of the order that minimizes total inventory costs which include ordering and holding carrying) costs. It can be calculated using the formula
If Q = order size in units, D = annual demand in units, p = cost per purchase order, s = carrying cost per year for one unit of inventory. If the annual demand decreases by 369/o the optimal order size will:
- A. Increase by 20%.
- B. Decrease by 20%.
- C. Increase by 6%. Decrease by 6%.
Answer: B
Explanation:
D decreases by 36%, that is, from 100% to 64%. Because .64 is the square of .8, the EOQ for 64D Q~) equals 80% of the EOQ for D (Q).
NEW QUESTION 100
An entity sells 1,500 units of a particular item each year and orders the items in equal quantities of 500 units at a price of US $5 per unit. No safety stocks are held. If the entity has a cost of capital of 1 2%, its annual opportunity cost of carrying inventory is:
- A. U5 $900
- B. U5 $180
- C. U5 $300
- D. U5 $150
Answer: D
Explanation:
The annual opportunity cost of carrying inventory equals the average inventory level times the cost per unit of inventory times the cost of capital. The average inventory level is the order quantity divided by 2. Thus, the annual opportunity cost of carrying inventory is US $150 [(500 units - 2) x $5 x .12].
NEW QUESTION 101
All of the following are objectives of pricing except:
- A. Profit maximization.
- B. Image-oriented objectives.
- C. Production maximization.
- D. Stabilization.
Answer: C
Explanation:
Pricing objectives may include maximization of profit and market share, price stabilization, and image enhancement. However, production maximization is not a pricing objective. It is more likely to be directed toward achieving economies of scale and resulting unit-cost reductions.
NEW QUESTION 102
The following transactions + occurred during a company's first year of operations:
I. Purchased a delivery van for cash
II. Borrowed money by issuance of short-term debt
III. Purchased treasury stock
Which of the items above caused a change in the amount of working capital?
- A. II and III only
- B. I only
- C. I and III only
- D. I and II only
Answer: C
Explanation:
Working capital is computed by deducting total current liabilities from total current assets.
The purchase of a delivery van for cash reduces current assets and has no effect on current liabilities. The borrowing of cash by incurring short-term debt increases current assets by the same amount as it increases current liabilities, hence, it will have no effect on working capital. The purchase of treasury stock decreases current assets but has no effect on current liabilities. Thus, the purchases of the van and treasury stock affect working capital.
NEW QUESTION 103
Organizations use matrix management to accomplish which of the following?
- A. To strengthen corporate headquarters.
- B. To improve the chain of command.
- C. To focus better on a single market.
- D. To increase lateral communication.
Answer: D
NEW QUESTION 104
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. Reading the board's minutes.
- C. Observing the organization's operations.
- D. Inspecting manuals and documents.
Answer: B
NEW QUESTION 105
Just-in-time (JIT) inventory systems have been adopted by large manufacturers to minimize the carrying costs of inventories. Identify the primary vulnerability of JIT systems.
- A. Computer resources.
- B. Implementation time.
- C. Materials supply contracts.
- D. Work stoppages.
Answer: D
Explanation:
JIT minimizes inventory by relying on coordination with suppliers to provide deliveries when they are needed for production. Consequently, work stoppages are more likely due to stock outs, because the inventory buffer is reduced or eliminated.
NEW QUESTION 106
A characteristic of the payback method before taxes) is that it:
- A. Incorporates the time value of money.
- B. Uses accrual accounting inflows in the numerator of the calculation.
- C. Neglects total project profitability.
- D. Uses the estimated expected life of the asset in the denominator of the calculation.
Answer: C
Explanation:
The, payback method calculates the number of years required to complete the return of the original investment. This measure is computed by dividing the net investment required by the average expected cash flow to he generated, resulting in the number of years required to recover the original investment. Payback is easy to calculate but has two principal problems: it ignores the time value of money, and it gives no consider t, -,n to returns after the payback period. Thus, it ignores total project profitability.
NEW QUESTION 107
ABC entities, a manufacturer lesser, leased a chine to XYZ on January 1. The lease meets the criteria for a finance lease. Title to the asset will automatically pass to the lessee at the end of the lease term. Other details are as follow:
Assuming the fair value of the asset is at least equal to the present value of the minimum lease payments, the journal entry to record the inception of this lease on the laser's books at January 1 is:
- A. Option A
- B. Option D
- C. Option B
- D. Option C
Answer: B
Explanation:
For this finance lease, the manufacturer-lesser should record
1.As gross investment, the minimum lease payments because there
2.As net investment, the difference between the gross investment in the lease and unearned finance income a credit to a liability
3.As unearned finance income the difference between the gross investment gross investment discounted at the interest rate implicit in the lease)
4.As sales revenue the fair value of the asset o if lower, the present value payments computed at the interest rate implicit in the lease
5.As cost of goods sold, the cost of the leased asset Because the first payment is made at the inception of the lease. the payment structure is that of annuity due. Sales revenue is therefore equal to the US $10.000 periodic payment times the present value of an annuity due of I discounted for 10 years at 10%US $10,000 6.7590 = US $67,590). Given that cash is paid at the beginning of the year, the initial 10.000 cash debit immediately decreases the gross investment in the lease payments receivable) from US $100,000 to US $90,000. The cost of the leased asset US $55,000) must also be charged to cost of sales and credited to inventory. Finally, at the inception of the lease, unearned finance income equals the difference between the gross investment and the sales price US $100,000 ax$67,590 = US 632,410).
NEW QUESTION 108
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. Increase by about 17 percent.
- B. Increase by about 7 percent.
- C. Decrease by about 7 percent.
- D. Decrease by about 17 percent.
Answer: A
NEW QUESTION 109
Which of the following cybersecurity-related activities is most likely to be performed by the second line of defense?
- A. Deploy intrusion detection systems and conduct penetration testing
- B. Administer security procedures, training, and testing.
- C. Monitor incidents, key risk indicators, and remediation
- D. implement vulnerability management with internal and external scans.
Answer: D
NEW QUESTION 110
An employee in the receiving department keyed in a shipment to the accounts payable system and inadvertently omitted the purchase order number. The best systems control to detect this error is:
- A. Sequence check.
- B. Compatibility test.
- C. Completeness test.
- D. Reasonableness test.
Answer: C
Explanation:
A completeness test checks that all data elements are entered before processing. An interactive system can be programmed to notify the user to enter the number before accepting the receiving report.
NEW QUESTION 111
A plumbing company, a wholesale distributor, supplies plumbing contractors and retailers throughout the Northeast on a next-day delivery basis. The company has a centrally located warehouse to accept receipts of plumbing supplies. The warehouse has a single dock to accept and unload railroad freight cars during the night. It takes 5 hours to unload each freight car. The company's prior records indicate that the number of freight cars that arrive in the course of a night range from zero to five or more, with no indicated pattern of arrivals. If more than two freight cars arrive on the same night, some freight must be held until the next day for unloading. The company wants to estimate the wait time when more than two freight cars arrive in the same night. The appropriate technique to analyze the arrival of freight cars is:
- A. Monte Carlo simulation.
- B. Integer programming.
- C. Linear programming.
- D. Regression analysis.
Answer: A
Explanation:
Monte Carlo simulation is often used in computer modeling to generate the individual values for a random variable. The performance of a quantitative model under uncertainty may be investigated by randomly selecting values for each variable in the model (based on the probability distribution of each variable) and then calculating the value of the solution. If this process is performed many times, the distribution of results from the model will be obtained.
NEW QUESTION 112
Which of the following is a security feature that involves the use of hardware and software to fitter or prevent specific information from moving between the outside network and the outside network?
- A. Virtual private network
- B. Architecture model
- C. Authorization
- D. Firewall
Answer: D
NEW QUESTION 113
In regression analysis, which of the following correlation coefficients represents the strongest relationship between the independent and dependent variables?
- A. 1.03
- B. .75
- C. -.89
- D. -.02
Answer: C
Explanation:
Because the range of values is between-1 and 1.-89 suggests a very strong inverse relationship between the independent and dependent variables. A value of -1 signifies a
perfect inverse relationship, and a value of 1 signifies a perfect direct relationship.
NEW QUESTION 114
To comply with the matching principle, the cost of labor services of an employee who participates in the manufacturing of a product normally should be charged to the income statement in the period in which the:
- A. Product is sold.
- B. Employee is paid.
- C. Product is completed.
- D. Work is performed.
Answer: A
Explanation:
Recognition of expenses occurs concurrently with recognition of increases in liabilities or decreases in assets. Expenses are recognized if the costs are directly associated with the earning of particular income items. This process is often called matching is simultaneous or combined recognition of the revenues and that result directly and jointly from the same transactions or other events. This direct relationship is exemplified by the sale of a product. This transaction results in revenue sales revenue) for receipt of cash or a receivable, the recognition of an expense cost of sales) for the sacrifice of the product to a customer, and a decrease in inventory. The direct labor cost of manufacturing the product is absorbed by the finished goods inventory and is not recognized until sale.
NEW QUESTION 115
......
Best Value Available! Realistic Verified Free IIA-CIA-Part3 Exam Questions: https://www.prepawayexam.com/IIA/braindumps.IIA-CIA-Part3.ete.file.html
Pass Your Exam Easily! IIA-CIA-Part3 Real Question Answers Updated: https://drive.google.com/open?id=1k0jtTbULKP5RU5Ftpic2BxzEBndLVn1k