ONLINE IIA-CIA-PART3 VERSION - IIA-CIA-PART3 RELEVANT ANSWERS

Online IIA-CIA-Part3 Version - IIA-CIA-Part3 Relevant Answers

Online IIA-CIA-Part3 Version - IIA-CIA-Part3 Relevant Answers

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Passing the IIA-CIA-Part3 exam is a significant achievement for internal auditors. It demonstrates that they have a solid understanding of business concepts and how they relate to internal auditing. This knowledge is essential for internal auditors, as it enables them to identify risks and opportunities within an organization and make informed recommendations to management. Business Knowledge for Internal Auditing certification also demonstrates a commitment to professional development and a willingness to invest in one's career.

IIA-CIA-Part3 exam is a computer-based exam that consists of 100 multiple-choice questions, and candidates have up to 2.5 hours to complete the exam. IIA-CIA-Part3 Exam is divided into six domains, each of which covers specific business knowledge areas that are relevant to internal audit activities. These domains include business acumen, information technology, financial management, global business environment, organizational structure and business processes, and risk management.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q260-Q265):

NEW QUESTION # 260
In a critical path analysis, if slack time in an activity exists, the activity:

  • A. Is not essential to the overall project.
  • B. Is a backup activity to replace a main activity should it fail.
  • C. Involves essentially no time to complete.
  • D. Could be delayed without delaying the overall project.

Answer: D

Explanation:
Slack is the free time associated with each activity. In other words, paths that are not critical have slack time. Slack represents unused resources that can be diverted to the critical path.


NEW QUESTION # 261
Which of the following is the most effective control to prevent unauthorized entrance of a former employee of the organization?

  • A. Installing multiple high-powered surveillance cameras throughout the organization
  • B. Keeping doors locked and accessible with a key that is provided only to employees
  • C. Installing security guards who have undergone a background check at all entrances.
  • D. Revoking the former employee's biometrics from the entrance systems

Answer: D


NEW QUESTION # 262
An organization that sells products to a foreign subsidiary wants to charge a price that will decrease import tariffs. Which of the following is the best course of action for the organization?

  • A. Charge at the optimal transfer price.
  • B. Increase the transfer price.
  • C. Charge at the arm's length price.
  • D. Decrease the transfer price.

Answer: C


NEW QUESTION # 263
Which of the following is a characteristic of big data?

  • A. Big data must be relevant for the purposes of organizations.
  • B. Big data comes from a single type of formal.
  • C. Big data is being generated slowly due to volume.
  • D. Big data is always changing

Answer: B


NEW QUESTION # 264
A carpet manufacturer maintains a retail division consisting of stores stocking its brand and other brands, and a manufacturing division that makes carpets and pads. An outside market exists for carpet padding material in which all padding produced can be sold. The proper transfer price for padding transferred from the manufacturing division to the retail division is:

  • A. The market price at which the retail division could purchase padding.
  • B. Variable manufacturing division production cost plus variable selling and administrative cost.
  • C. Variable manufacturing division production cost plus allocated fixed factory overhead.
  • D. Variable manufacturing division production cost.

Answer: A

Explanation:
The three basic criteria that the transfer pricing system in a decentralized company should satisfy are to 1) provide information allowing central management to evaluate divisions with respect to total company profit and each division's contribution to profit, 2) stimulate each manager's efficiency without losing each division's autonomy, and 3) motivate each divisional manager to achieve his/her own profit goal in a manner contributing to the company's success. The market price should be used as the transfer price to avoid waste and maximize efficiency in a competitive economy an outside market in which all padding produced can be sold). This price also measures the product's profitability and the division managers' performance in a competitive environment.


NEW QUESTION # 265
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