[May-2025] Exam IIA-CIA-Part3: New Brain Dump Professional - ActualPDF
Free IIA-CIA-Part3 Exam Dumps to Improve Exam Score
IIA-CIA-Part3 certification exam is an excellent opportunity for internal auditors to demonstrate their knowledge of business concepts and principles. By passing IIA-CIA-Part3 exam, candidates can enhance their credibility and demonstrate their commitment to ongoing professional development. Additionally, the certification can lead to career advancement opportunities and higher salaries in the field of internal auditing.
NEW QUESTION # 79
An organization has an agreement with a third-party vendor to have a fully operational facility, duplicate of the original site and configured to the organization's needs, in order to quickly recover operational capability in the event of a disaster, Which of the following best describes this approach to disaster recovery planning?
- A. Storage area network recovery plan.
- B. Outsourced recovery plan.
- C. Cold recovery plan,
- D. Hot recovery plan
Answer: A
NEW QUESTION # 80
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
- A. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
- B. 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.
- C. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
- D. 50 percent of total organizational cost has been allocated on a volume basis.
Answer: D
NEW QUESTION # 81
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, 2, and 4
- B. 2, 3, and 4
- C. 1, 3, and 4
- D. 1, 2, and 3
Answer: B
NEW QUESTION # 82
Which of the following professional organizations sets standards for quality and environmental audits?
- A. The Committee of Sponsoring Organizations of the Treadway Commission.
- B. The International Organization of Supreme Audit Institutions.
- C. The International Standards Organization.
- D. The Board of Environmental, Health, and Safety Auditor Certifications.
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION # 83
Which of the following best demonstrates an organization's ability to recover from a disaster?
- A. Regular testing of the disaster plan
- B. Redundant data center
- C. Hot site
- D. Cold site
Answer: A
NEW QUESTION # 84
The network below describes the interrelationships of several activities necessary to complete a project. The arrows represent the activities. The numbers between the arrows indicate the number of months to complete each activity.
The shortest time to complete the project is
- A. 5 months.
- B. 8 months.
- C. 14 months.
- D. 6 months.
Answer: B
Explanation:
The critical (longest) path through the network from node (A) to node (F) is path A-C-D-F. All other paths are shorter than path A-C-D-F, so the activities along those paths can be completed before the activities along path A-C-D-F. Thus, the shortest time to complete the project is 8 months (3 + 3 + 2).
NEW QUESTION # 85
In Year 2, a manufacturing company instituted a total quality management TQM) program producing the following report:
On the basis of this report, which one of the fallowing statements is most likely true?
- A. Quality costs, such as returns and repairs under warranty, decreased by 40%.
- B. An increase in inspection costs was solely responsible for the decrease in quality costs.
- C. An increase in conformance costs resulted in a higher quality product and therefore resulted in a decrease in nonconformance costs.
- D. Quality costs, such as scrap and rework, decreased by 48%.
Answer: C
Explanation:
TQM emphasizes the supplier's relationship with the customer and recognizes that everyone in a process is at some time a customer or supplier of someone else, either within or outside the organization. The costs of quality include costs of conformance and costs of nonconformance. Casts of conformance include prevention costs and appraisal inspection) costs. Nonconformance costs are composed of internal failure costs and external failure costs, such as lost opportunity. Conformance costs prevention and appraisal) increased substantially, whereas the nonconformance casts internal and external failure) decreased.
Hence, the increase in conformance casts resulted in a higher-quality product.
NEW QUESTION # 86
Unsecured loans are loans:
- A. That appear to be too risky for most lenders to consider.
- B. Granted on the basis of a company's credit standing.
- C. That do not have to be repaid for over one year.
- D. Backed by mortgaged assets.
Answer: B
NEW QUESTION # 87
A learning curve of 80% assumes that the incremental unit time is reduced by 20% for each doubling of output. Also, direct labor cost is proportionate to time worked. What is the incremental direct labor cost of the 16th unit produced as an approximate percentage of the first unit produced?
- A. 41%
- B. 64%
- C. 31%
- D. 51%
Answer: A
Explanation:
The assumption is that the incremental unit time (time to produce the last unit) is reduced by 20% when production doubles. Thus, the labor cost of the sixteenth unit is 40.96% of that for the first unit (100% x 80% x 80% x 80% x 80%).
NEW QUESTION # 88
Which of the following conditions could lead an organization to enter into a new business through internal development rather than through acquisition?
- A. The acquiring organization has information that the selling organization is weak.
- B. It is expected that there will be slow retaliation from incumbents.
- C. The condition of the economy is poor.
- D. The number of bidders to acquire the organization for sale is low.
Answer: B
NEW QUESTION # 89
An entity purchased a new machine for US $' III 610100 by borrowing the required funds from a bank for 180 days. What will be the direct impact of this transaction?
- A. Increase the current ratio and increase the debt ratio.
- B. Decrease the current ratio and decrease the debt ratio.
- C. Decrease the current ratio and increase the debt ratio.
- D. Increase the current ratio and decrease the debt ratio.
Answer: C
Explanation:
The borrowing of funds for 180 days constitutes short-term borrowing. The new machine is a fixed asset. Current liabilities have increased, and current assets have remained constant. Consequently, the current ratio current assets + current liabilities) has decreased. Total debt and total assets increased by the same absolute amount, and the debt ratio total debt - total assets) should have increased. assuming total debt is less than total asset.
NEW QUESTION # 90
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?
- A. Risk reduction.
- B. Risk sharing.
- C. Risk acceptance.
- D. Risk avoidance.
Answer: A
NEW QUESTION # 91
Which of the following is considered a physical security control?
- A. System servers are secured by locking mechanisms with access granted to specific individuals.
- B. System security settings require the use of strong passwords and access controls.
- C. Failed system login attempts are recorded and analyzed to identify potential security incidents.
- D. Transaction logs are maintained to capture a history of system processing.
Answer: A
NEW QUESTION # 92
Which of the following results in a tax base of zero?
- A. A loan receivable has a carrying amount of US $1.000 and repayment has no tax effects.
- B. Accrued expenses have a carrying amount of US $1.000 and the related expense has been included in full in the determination of taxable profit.
- C. Trade receivables have a carrying amount of US $1 .000 and the related revenue has been included in full in the determination of taxable profit.
- D. Unearned interest revenue has a carrying amount of US $1.000 and the related interest revenue was included in full in the determination of taxable profit.
Answer: D
Explanation:
The difference between the carrying amount of an asset or liability and its tax base is a temporary difference TD). A taxable (deductible) TD results in taxable deductible) amounts in the future when the carrying amount of the asset or liability is recovered or settled. The tax base is the amount attributed for tax purposes to an asset or Ii ability. The tax base of an asset is the amount deductible against future taxable economic benefits when the asset's carrying amount is recovered. The tax base of a liability is the portion of the carrying amount that will not be deductible against future taxable economic benefits for tax purposes. The tax base of revenue received in advance a liability is the portion of the carrying amount taxable in the future. For unearned interest revenue for which the related interest revenue was taxed on a cash basis, the tax base equals zero US $1.000 carrying amount - $1.000 not taxable in the future). An entity has purchased an asset with a 10-year useful life. It will use an accelerated depreciation method for determining taxable profit or tax loss. For determining accounting profit, it will use straight-line depreciation.
NEW QUESTION # 93
An organization's account for office supplies on hand had a balance of $9,000 at the end of year one. During year two, the organization recorded an expense for purchasing office supplies. At the end of year two, a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?
- A. A debit to office supplies on hand for $2,500
- B. A debit to office supplies on hand for $11,500
- C. A debit to office supplies on hand for $20,500
- D. A debit to office supplies on hand for $42,500
Answer: A
Explanation:
Reference: IIA Business Knowledge for Internal Auditing, Financial Accounting and Reporting section.
NEW QUESTION # 94
Why would an entity maintain a compensating cash balance?
- A. To pay for banking services.
- B. To make routine payments and collections.
- C. To take advantage of bargain purchase opportunities that may arise.
- D. To provide a reserve in case of unforeseen fluctuations in cash flows.
Answer: A
Explanation:
The compensating cash balance is the money left in a checking account in the bank in order to compensate the bank for services it provides.
NEW QUESTION # 95
KW Ltd. leased equipment under a 4-year non cancelable lease properly classified as a finance learn. The lease does not transfer ownership or contain a bargain purchase option. The equipment had an estimated economic life of 5 years and an estimated residual value of US $20.000. Terms of the lease included a guarantees residual value of US $50,000. KW initially recorded the leased equipment at US $240,000 and its depreciation polity for owned assets is to use the straight-line method. Thus, the amount of depreciation that should be charged each year is:
- A. US $47,500
- B. US $55,000
- C. US $38,000
- D. US $44,000
Answer: A
Explanation:
Depreciation should be consistent with the accounting policy for owned assets. Absent a reasonable certainty that the lessee will own the asset at the end of the lease term, it should be fully depreciated over the shorter of the useful life or the lease term. The lease does not transfer ownership or contain a bargain purchase option. Accordingly, the period of amortization should be the lease term. In accordance with the straight-line method used by KW for owned assets, the depreciable base for this finance lease is equal to the US $240,000 initially recorded minus the US $50,000 guaranteed residual value allocated equally over the 4-year lease term. Consequently, annual depreciation expense is US $47,500 [($24,00,000 - $50,000) - 4 years]. On January 1 Plantation Partners is planning to enter as the lessee into the two lease agreements described in the opposite column. Each lease is noncancelable, and Plantation does not receive title to either leased property during or at the end of the lease term. All payments required under these agreements are due on January 1 each year.
NEW QUESTION # 96
A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:
- A. Reframing.
- B. Dialogue.
- C. Empathetic listening.
- D. Reflective listening.
Answer: A
NEW QUESTION # 97
Bondholders are assured of protection against inflation if they hold:
- A. Income bonds.
- B. Convertible bonds.
- C. Mortgage bonds.
- D. Indexed bonds.
Answer: D
Explanation:
The interest payments on indexed or purchasing power bonds are based on an inflation index, such as the consumer price index. Thus, interest paid to bondholders rises automatically when the inflation rate rises.
NEW QUESTION # 98
......
Powerful IIA-CIA-Part3 PDF Dumps for IIA-CIA-Part3 Questions: https://dumpstorrent.actualpdf.com/IIA-CIA-Part3-real-questions.html
