2022 Realistic Verified Free IIA IIA-CIA-Part3 Exam Questions [Q140-Q159]

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2022 Realistic Verified Free IIA IIA-CIA-Part3 Exam Questions

IIA-CIA-Part3 Real Exam Questions and Answers FREE

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IIA IIA-CIA-Part3 Exam Syllabus Topics:

Topic	Details
Topic 1	Differentiate types of common physical security controls Examine common performance measures
Topic 2	Explain basic IT infrastructure and network concepts ?Recognize existing and emerging cybersecurity risks
Topic 3	Recognize emerging technology practices and their impact on security Appraise the risk and control implications of different organizational configuration structures
Topic 4	Explain the data analytics process ?Differentiate the various forms of user authentication and authorization controls
Topic 5	Describe cybersecurity and information security-related policies Describe the strategic planning process and key activities
Topic 6	Recognize data privacy laws and their potential impact on data security policies and practices Explain disaster recovery planning site concepts
Topic 7	?Recognize advanced and emerging financial accounting concepts Organizational Structure and Business Processes
Topic 8	Recognize the various forms and elements of contracts ?Identify project management techniques
Topic 9	Recognize the application of data analytics methods in internal auditing Explain the purpose and use of various information security controls

QUESTION 140
Regardless of whether a company develops, buys, leases, or pays for the use of the software for EDI transmissions, internal audit should be responsible for evaluating whether the software:

Was developed in a controlled environment.

Is backed up adequately to permit recovery.

Was acquired with adequate review by legal counsel.

Meets business objectives.

An EDI application should meet business objectives and satisfy user and control requirements. The internal auditors should consider the organization’s important EDI applications because they represent significant risk exposures and control problems. This role is within the scope of work of the internal auditors, who are charged with examining and evaluating internal control and the quality of performance in carrying out assigned responsibilities.

QUESTION 141
A bank plans to open a branch in one of five locations (labeled L1, L2, L3, L4, L5). Demand for bank services may be high, medium, or low at each of these locations. Profits for each location-demand combination are presented in the payoff matrix.

If, in addition to the estimated profits .management of the bank assesses the probabilities of high, medium, and low demands to be 0.3.0.4, and 0.3, respectively, what is the expected opportunity loss from selecting location L4?

US$5.50

US$7.90

US$7.50

US$5.00

First, the opportunity loss matrix must be prepared

QUESTION 142
In which product-mix pricing strategy is it appropriate for the seller to accept any price that exceeds the storage and deliver} casts for the product?

By-product pricing.

Optional-product pricing.

Captive-product pricing.

Product-bundle pricing.

A by-product is a product of relatively minor importance generated during the production of one or more other products. Its production entails no additional costs. Any amount received above the storage and delivery. casts for a by-product allows the seller to reduce the main product’s price to make it more competitive.

QUESTION 143
Which of the following controls would an internal auditor consider the most relevant to reduce risks of project cost overruns?

Scope change requests are reviewed and approved by a manager with a proper level of authority.

Cost overruns are reviewed and approved by a control committee led by the project manager.

There is a formal quality assurance process to review scope change requests before they are implemented

There is a formal process to monitor the status of the project and compare it to the cost baseline

QUESTION 144
Which of the following statements is true regarding reversing entries in an accounting cycled

Reversing all previous closing adjustments is a mandatory step in the accounting cycle

Reversing entries should be completed at the end of the next accounting period after recording regular transactions of the period

Reversing entries are identical to the adjusting entries made in the previous period.

Reversing entries are the exact opposite of the adjustments made in the previous period.

QUESTION 145
If, in addition to the estimated profits, management of the bank assesses the probabilities of high, medium, and low demands to be 0.3, 0.4, and 0.3 respectively, what is the expected opportunity loss from selecting location of L4?

5.50

7.90

7.50

5.00

The opportunity loss matrix is as follow:

QUESTION 146
Which of the following best describes the lessee’s accounting for operating and finance leases?
Operating
Finance
Not capitalized
Capitalized
Capitalized
Capitalized
Not capitalized
Not capitalized
Capitalized
Not capitalized

pending
A. B. C. D.

QUESTION 147
Management of a company is attempting to build a reputation as a world-class manufacturer of quality products. Which of the following measures would not be used by the firm to measure quality?

The percentage of shipments returned by customers because of poor quality.

The number of parts shipped per day.

The number of defective parts per million.

The percentage of products passing quality tests the first time.

The number of parts shipped per day would most likely be used as a measure of the effectiveness and efficiency of shipping procedures, not the quality of the product. This
measure does not consider how many of the parts are defective.

QUESTION 148
In relation to the monetary unit amount of sales, which of the following cost classifications is appropriate for advertising and sales salaries costs?

Option A

Option B

Option C

Option D

Both advertising and sales salaries should be classified as fixed costs. The advertising was constant for 3 of the 4 months and would be considered fixed in terms of monetary unit sales. Sales salaries also did not vary with monetary unit sales. A company manufactures and sells a single product. Planned and actual production in its first year of operation was 100,000 units. Planned and actual costs for that year were as:

The company sold 85,0u0 units of product at a selling price of US $30 per unit.

QUESTION 149
A firm buys like-new computer equipment from bankrupt companies and resells it in foreign markets at prices significantly below those charged by competitors. The firm is:

Engaged in dumping.

Engaged in price discrimination.

Operating in a gray market.

Operating in a black market.

In a gray market, products imported from one country to another are sold by persons trying to make a profit from the difference in retail prices between the two countries. In essence, the seller firm in this case was exploiting a price difference between markets.

QUESTION 150
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?

The “Funds Needed” line will remain pointed upward, but will become less steep.

The “Funds Needed” line will remain pointed upward, but will become more steep.

The “Funds Needed” line will point downward with a minimal slope.

The “Funds Needed” line will point downward with an extreme slope.

QUESTION 151
For an engineering department with a total quality management program, important elements of quality management include all of the following except:

Basing performance evaluations on the number of projects completed.

Comparing results with those of other engineering departments.

Creating a quality council within the engineering department.

Conducting post-project surveys on performance.

QUESTION 152
A value-added tax is collected on the basis of:

The difference between the value of an entity’s sales and the value of its purchases from other domestic entities.

The difference between the selling price of a real estate property and the amount the entity originally paid for it.

The value of an entity’s sales to related companies.

The profit earned on an entity’s sales.

A value-added tax is similar to a retail sales tax on consumer goods. It is applied to the difference between the value of an entity’s sales and the value of its purchases from other entities, that is. to the value added to the input In effect, a value-added tax is a national tax that penalizes consumption.

QUESTION 153
A bond that matures after one year has a face value of S250,000 and a coupon of $30,000. if the market price of the bond is 5265,000, which of the following would be the market interest rate?

Less than 12 percent.

12 percent.

Between 12.01 percent and 12.50 percent.

More than 12 50 percent.

QUESTION 154
Which component of an organization’s cybersecurity risk assessment framework would allow management to implement user controls based on a user’s role?

Prompt response and remediation policy

Inventory of information assets

Information access management

Standard security configurations

QUESTION 155
The feasible solution region is bounded by the lines connecting points:

3, 4, 6, and 7.

I, 5, 6, and 8.

2, 4, , , and 8.

3, E. 6, and 7.

A model consisting of a system of functions may be used to optimize an objective function. If the functions in the model are all linear, the model is a linear programming model. Linear programming is a technique to determine optimal resource allocation. Several solution methods are available to solve linear programming problems. The graphical method, the easiest technique, is limited to simple problems. Here, the graph consists of three lines, each representing a production constraint. The lines connecting points , 4, 6, and 7 bound the feasible solution region. Product mikes of and Y that lie outside this boundary cannot be produced and/or sold because the demand constraint line ,4), the labor constraint line 4,6), and the material constraint line 6,7) are binding. A company produces two products, and Y, which use material and labor as inputs. Fixed amounts of labor and material are available for production each month In addition. the demand for product Y each month is limited: product has no constraint an the number of units that can be sold. A graphical depiction of these production and demand constraints is presented in the opposite column.

QUESTION 156
The type of option that does not have the backing of stock is called a(n):

Covered option

Unsecured option.

Naked option

Put option.

A naked or uncovered option is a call option that does not have the backing of stock. Thus, the option writer will have to purchase the underlying stock if the call option is exercised.

QUESTION 157
A control for ensuring that the source code and the executable code for a program match is:

Verifying that the program move request is authorized.

Requiring program, system, and parallel testing of the code.

Authorizing programmer access to test libraries only.

Recompiling source code into the production load library.

Recompiling source code into the production load library ensures that the source and executable codes match because the executable code is created from the source code.

QUESTION 158
In production management, product breakdown into component parts and lead times for procuring these parts is necessary for:

A critical path method (CPM) system.

A materials requirements planning (MRP) system.

An economic order quantity (EOQ) system.

An ABC system.

Materials requirements planning (MRP) is usually considered a computer-based information system designed to plan and control raw materials used in a production setting. It assumes that estimated demand for materials is reasonably accurate and that suppliers can deliver based upon this accurate schedule. It is crucial that delivery delays be avoided because, under MRP, production delays are almost unavoidable if the materials are not on
hand. An MRP system uses a parts list, often called a bill of materials, and lead times for each type of material to obtain materials just as they are needed for planned production.

QUESTION 159
On December 1, Year 1, a company using the installment sales method sold goods that cost US $1.000 for US $1.500. The buyer paid US $100 down. Monthly payments start January 1. Year 2. Interest accrues at 1% per month on the unpaid balance. To the nearest dollar, the effect on profit for Year 1 is:

US $33 increase

US $47 increase

US $67 increase

US $114 increase

The gross profit margin is 33-1/3% [(US $1.500 – $1.000) $1,500], so the amount of profit from the US $100 down payment recognizable in Year 1 is US $33rounded).
Interest accrued on the US $1.400$1,500 – $100) balance for 1 month is US $14. Consequently the effect on profit is US $47$33 $14).

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