IIA-CIA-Part3 Questions PDF [2024] Use Valid New dump to Clear Exam
Passing IIA IIA-CIA-Part3 Exam Using 2024 Practice Tests
NEW QUESTION # 191
Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?
- A. The "Funds Needed" line will point downward with an extreme slope.
- B. The "Funds Needed" line will point downward with a minimal slope.
- C. The "Funds Needed" line will remain pointed upward, but will become less steep.
- D. The "Funds Needed" line will remain pointed upward, but will become more steep.
Answer: D
NEW QUESTION # 192
Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level -
Maintenance Cost
Month
Patient Days
January
5,600
$7,900
February
7,100
$8,500
March
5,000
$7,400
April
6,500
$8,200
May
7,300
$9,100
June
8,000
$9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?
- A. Variable cost.
- B. Patient days.
- C. Fixed cost.
- D. Total maintenance cost.
Answer: B
NEW QUESTION # 193
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?
- A. A time-sensitive just-in-time purchase environment.
- B. A currently inefficient purchasing process.
- C. A variable volume sensitive to material cost.
- D. A large volume of custom purchases.
Answer: A
NEW QUESTION # 194
Fulford Company applies the target pricing and costing approach. The following information about costs and revenues of Fulford's product are available for the year just ended:
Fulford plans to increase unit sales to 80,000 by reducing the product's unit price to US $320.
If Fulford desires a unit target operating income of 12CYo, by what amount must it reduce the full cost per unit?
- A. US $70.40
- B. US $38.40
- C. US $80.00
- D. US $32.00
Answer: A
Explanation:
Unit target operating income is US $38.40 $320 unit target price 12°X0). Hence, the unit target full cost is US $281.60 $320 - $38.40). The current full cost per unit is US $352.00 [($13,200,000 CGS + $7,920,000 other value chain operating costs) - 60,000 units sold], so the necessary reduction in the full cost per unit is US $70.40 $352.00 - $281.60).
NEW QUESTION # 195
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?
- A. 27 days.
- B. 21 days.
- C. 22 days.
- D. 51 days.
Answer: A
NEW QUESTION # 196
Which of the following best demonstrates an organization's ability to recover from a disaster?
- A. Redundant data center
- B. Hot site
- C. Cold site
- D. Regular testing of the disaster plan
Answer: B
NEW QUESTION # 197
The process of adding resources to shorten selected activity times on the critical path in project scheduling is called:
- A. ABC analysis.
- B. Crashing.
- C. The Delphi technique.
- D. A branch-and-bound solution.
Answer: B
Explanation:
Activity times are estimated for normal effort and crash effort. Crashing is the process of adding resources to shorten activity times on the critical path in project scheduling. The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc. are presented below. The numbers in the diagram are the expected times in days) to perform each activity in the project.
NEW QUESTION # 198
Which of the following physical security controls is able to serve as both a detective and preventive control?
- A. Card key readers.
- B. Biometric devices
- C. Authentication logs.
- D. Video surveillance.
Answer: D
NEW QUESTION # 199
An organization is considering mirroring the customer data for one regional center at another center. A disadvantage of such an arrangement would be:
- A. Lack of awareness of the state of processing.
- B. Interference of the mirrored data with the original source data.
- C. Confusion about where customer data are stored.
- D. Increased cost and complexity of network traffic.
Answer: D
NEW QUESTION # 200
The Entity has dividend-payout ratio of:
- A. 28.6%
- B. 19.6%
- C. 40.0%
- D. 50.0%
Answer: D
Explanation:
The dividend-payout ratio is the ratio of dividends paid to profit for the period. Hence, it equals 50.0% US $100 dividends $200 profit). An entity's financial statements for the current year are presented below:
NEW QUESTION # 201
The data below were gathered on two different machine centers and two products.
Which item below would be part of a linear programming formulation of this problem?
- A. Subject to: 4A + 5B 130.
- B. Subject to: 2.5A + 4B 60.
- C. Subject to: A 0.
- D. Maximize: Contribution 4A + 5B.
Answer: B
Explanation:
The linear programming solution is subject to constraints on the availability of machine
hours in both centers. For example, products A and B require 2.5 and 4 hours per unit,
respectively, in Machine Center 1, but only 60 hours are available. Hence, the optimal
production of A and B to the following constraint:
2.5A+4B60
NEW QUESTION # 202
An internal auditor is reviewing results from software development integration testing. What is the purpose of integration testing?
- A. To verify that me application would work appropriately for the intended number of users.
- B. To verify that the application meets staled user requirements.
- C. To verify that all software and hardware components work together as intended
- D. To verify that standalone programs match code specifications.
Answer: C
NEW QUESTION # 203
Bandit Co. will recognize revenue from the December sale of the maintenance contracts in the, List A, year if it selects <List B> basis reporting.
- A. Option B
- B. Option A
- C. Option C
- D. Option D
Answer: B
Explanation:
Under the cash basis of accounting, revenue is recognized when the cash is received. Because the customers paid cash for the maintenance contracts in the first year, that is the year in which the revenue should be recognized. On January 1. a new landscaping firm, Bandit Co., acquired a fleet of vehicles, all the necessary tools and equipment, and a parking and storage facility. It began operations immediately. It is now the end of the first year of operations, and the first set of year-end financial statements are being prepared. Several decisions have to be made regarding the appropriate accounting and reporting practices for this company. Relevant information for several of these items is described in the following list of transactions and events: At year-end, the parking and storage facility that was purchased for US $150,000 has a fair value of US $250,000. The physical flow of inventory is first in, first out, and the cost of materials has risen steadily over the year. To promote sales for the coming year, maintenance contracts were sold in December at very reasonable prices, provided that the customers paid cash. On April 1, the company arranged a US $100,000 10% bank loan. Interest payments of US $5,000 are due on October 1 and April 1 of each year during the 5-year term of the loan. During the first year of operations, the company experienced a 5% bad debt rate on credit sales None of the bad debts are expected to be recovered, given that 5% i s the industry average level of bad debts. Total credit sales for the year were U $400,000. The year-end balance of accounts receivable includes uncollected overdue accounts of US $100,000. Half of the uncollected overdue amounts are estimated to be uncollectible.
NEW QUESTION # 204
Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?
- A. Physical control test.
- B. Social engineering test.
- C. Vulnerability test.
- D. Penetration test.
Answer: A
NEW QUESTION # 205
An internal auditor was asked to review an equal equity partnership. In one sampled transaction, Partner A transferred equipment into the partnership with a self-declared value of $10,000, and Partner B contributed equipment with a self-declared value of $15,000. The capital accounts of each partner were subsequently credited with $12,500. Which of the following statements is true regarding this transaction?
- A. The capital accounts should be increased using a weighted average based on the current percentage of ownership.
- B. The capital accounts of the partners should be increased by the fair market value of their contribution.
- C. No action is needed, as the capital account of each partner was increased by the correct amount.
- D. The capital accounts of the partners should be increased by the original cost of the contributed equipment.
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION # 206
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?
- A. 27 days.
- B. 21 days.
- C. 22 days.
- D. 51 days.
Answer: A
NEW QUESTION # 207
The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as:
- A. Appraisal costs.
- B. Internal failure costs.
- C. External failure costs.
- D. Preventive costs.
Answer: A
Explanation:
The Categories of quality costs include conformance costs (prevention and appraisal) and nonconformance costs(internal failure and external failure).appraisal costs embrace such activities as statistical quality control programs. inspection, and testing. thus, the cost of detecting nonconfoming products is an appraisal cost. listed below are costs of quality that a manufacturing company has incurred throughout its operations, the company plans to prepare a report that classified these costs into the following four categories: preventive costs, appraisal costs, internal failure costs, and external failure costs.
NEW QUESTION # 208
The data below were gathered on two different machine centers and two products.
Which item below would be part of a linear programming formulation of this problem?
- A. Subject to: 2.5A + 4B < 60.
- B. Subject to: A < O.
- C. Subject to: 4A + 5B < 130.
- D. Maximize: Contribution > 4A + 5B.
Answer: A
Explanation:
The linear programming solution is subject to constraints on the availability of machine hours in both centers. For example, products A and B require 2.5 and 4 hours per unit, respectively, in Machine Center 1, but only 60 hours are available. Hence, the optimal production of A and B to the following constraint:
2.5 A + 4B < 60
NEW QUESTION # 209
If bonds are sold at a discount and the effective interest method of amortization is used, interest expense will:
- A. Remain constant from one period to another.
- B. Be less than the cash interest payment each period.
- C. Equal the cash interest payment each period.
- D. Increase from one period to another.
Answer: D
Explanation:
Interest expense equals the carrying value of the liability at the beginning of the period times the effective interest rate. The carrying value of the liability equals the face value of the of the bond minus the discount. As the discount is amortized over the life of the bond, the carrying value increases, consequently the interest expense increases over the life of the bond.
NEW QUESTION # 210
A company often revises its production processes. The changes may entail revisions to processing programs. Ensuring that changes have a minimal impact on processing and result in minimal risk to the system is a function of:
- A. Security administration.
- B. Change control.
- C. Problem-escalation procedures.
- D. Problem tracking.
Answer: B
Explanation:
Change control is the process of authorizing, developing, testing, and installing coded II changes so as to minimize the impact on processing and the risk to the system.
NEW QUESTION # 211
Activity scheduling information for the installation of a new computer system is given below
The earliest completion time for the project is:
- A. B-E.
- B. A-C.
- C. A-D-E.
- D. B-D-C.
Answer: C
Explanation:
The critical path is the longest path because it defines the minimum duration of the project. A-D-E 4 + 6 + 5 = 15) is the critical path.
NEW QUESTION # 212
According to IIA guidance, which of the following would be the best first step to manage risk when a third party is overseeing the organization's network and data?
- A. Applying administrative privileges to ensure right-to-access controls are appropriate
- B. Creating a comprehensive reporting system for vendors to demonstrate their ongoing due diligence in network operations
- C. Drafting a strong contract that requires regular vendor control reports and a right-to-audit clause.
- D. Creating a standing cybersecurity committee to identify and manage risks related to data security
Answer: C
NEW QUESTION # 213
Division Z of a company produces a component that it currently sells to outside customers for US $20 per unit At its current level of production, which is 60% of capacity, Division Z's fixed cost of producing this component is US $5 per unit and its variable cost is US $12 per unit Division Y of the same company would like to purchase this component from Division Z for US $10. Division Z has enough excess capacity to fill Division Y's requirements. The managers of both divisions are compensated based upon reported profits. Which of the following transfer prices will maximize total company profits and be most equitable to the managers of Division Y and Division Z?
- A. US $22 per unit
- B. US $18 per unit
- C. US $12 per unit
- D. US $20 per unit
Answer: B
Explanation:
A unit price of US $18 is less than Division Y's cost of purchase from an outside supplier but Division Z's production cost. Accordingly, both Y and Z benefit.
NEW QUESTION # 214
A building contractor has a fixed-price contract to construct a large building. It is estimated that the building will take 2 years to complete. Progress billings will be sent to the customer at quarterly intervals. Which of the following describes the preferable point for revenue recognition for this contract if the outcome of the contract can be estimated reliably?
- A. As cash is received.
- B. When the contract is completed.
- C. As progress is made toward completion of the contract.
- D. After the contract is signed.
Answer: C
Explanation:
Under the percentage-of-completion method, revenues and expenses are recognize based on the stage of completion at the balance sheet date if the outcome of the contract can be estimated reliably. For a fixed-price contract, the outcome can be estimated reliably if total revenue can be measured reliably.2) it is probable that the economic benefits of the contract will flow to the enterprise.3) contract costs to complete and stage of completion can be measured reliably, and4) contract costs can be clearly identified and measured reliably so that actual and estimated costs can be compared.
NEW QUESTION # 215
Which of the following measures would best protect an organization from automated attacks whereby the attacker attempts to identify weak or leaked passwords in order to log into employees' accounts?
- A. Requiring users to change their passwords every two years.
- B. Requiring the use of a virtual private network (VPN) when employees are out of the office.
- C. Requiring the use of up-to-date antivirus, security, and event management tools.
- D. Requiring two-step verification for all users
Answer: D
NEW QUESTION # 216
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