100% PASS UNPARALLELED IIA - RELIABLE IIA-CIA-PART3 EXAM ANSWERS

100% Pass Unparalleled IIA - Reliable IIA-CIA-Part3 Exam Answers

100% Pass Unparalleled IIA - Reliable IIA-CIA-Part3 Exam Answers

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IIA-CIA-Part3 exam focuses on testing the candidate's understanding of essential business concepts and their application in the internal audit process. IIA-CIA-Part3 exam covers various topics, including strategic management, organizational behavior, finance and accounting, economics, and information technology. The objective of the exam is to evaluate the candidate's ability to apply these principles to perform effective internal audits and add value to the organization.

IIA-CIA-Part3 certification exam is a crucial step for internal auditors who want to demonstrate their proficiency in business knowledge. IIA-CIA-Part3 Exam is the third part of the Certified Internal Auditor (CIA) certification process offered by the Institute of Internal Auditors (IIA). IIA-CIA-Part3 exam is designed to assess a candidate's ability to apply business concepts and principles to internal auditing practices.

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IIA-CIA-Part3 exam is designed to test the candidate's knowledge of business concepts and practices as they relate to internal auditing. IIA-CIA-Part3 Exam covers a wide range of topics, including macro and microeconomics, financial statement analysis, budgeting and forecasting, risk management, and corporate governance.

IIA Business Knowledge for Internal Auditing Sample Questions (Q36-Q41):

NEW QUESTION # 36
Which of the following changes in accounting policies resulting from a significant change in the expected pattern of economic benefit will increase profit?

  • A. A change from FIFO to weighted-average inventory valuation when costs are falling.
  • B. A change from straight-line to accelerated depreciation in the early years of the depreciable lives of the assets.
  • C. A change from accelerated to straight-line depreciation in the later years of the depreciable lives of the assets.
  • D. A change from FIFO to LIFO inventory valuation when costs are rising.

Answer: A

Explanation:
According to IAS 16 Property, Plant, and Equipment, a change in depreciation method resulting from a significant change in the expected pattern benefits is accounted for as a change in estimate, that is. prospectively. In a period of falling cost=. FIF1 results in higher cost of goods sold than the weighted-average method. FIFO includes the higher, early in cost of goods sold, whereas the weighted-average method averages the later, lower costs with the higher, earlier costs. Thus, a change from FIFO to weighted-average costing reduces cost of goods sold and into reported profit. An entity had the following account balances in the pre-closing trial balance:


NEW QUESTION # 37
An organization discovered fraudulent activity involving the employee time-tracking system. One employee regularly docked in and clocked out her co-worker friends on their days off, inflating their reported work hours and increasing their wages. Which of the following physical authentication devices would be most effective at disabling this fraudulent scheme?

  • A. A requirement to clock in and clock out with a unique personal identification number.
  • B. Face or finger recognition equipment,
  • C. A combination of a smart card and a password to clock in and clock out.
  • D. Radio-frequency identification chips to authenticate employees with cards.

Answer: B


NEW QUESTION # 38
Violation of which assumption underlying regression analysis is prevalent in time series analysis?

  • A. Distribution of error terms is normal.
  • B. Expected value of error term equals zero.
  • C. Error terms are independent.
  • D. Variance of error term is constant.

Answer: C

Explanation:
Time series analysis is a regression model in which the independent variable is time. In time series analysis, the value of the next time period is frequently dependent on the value of the time period before that. Hence, the error terms are usually correlated or dependent on the prior period; i.e., they are characterized by autocorrelation serial correlation).


NEW QUESTION # 39
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. 2, 3, and 4
  • B. 1, 2, and 3
  • C. 1, 3, and 4
  • D. 1, 2, and 4

Answer: A


NEW QUESTION # 40
The marginal cost of debt for an entity is defined as the interest rate on <List A> debt minus

  • A. Option C
  • B. Option B
  • C. Option A
  • D. Option D

Answer: A

Explanation:
The marginal cost of debt as a rate) must equal the cost of new debt as a rate) minus the tax savings as a rate). Hence, marginal cost equals the cost of new debt times one minus the marginal tax rate, or ks(1 - T). This expression equals Ka - Kat. The marginal cost of debt financing is the interest rate on new debt minus the entity's marginal tax rate multiplied by the interest rate. Moreover, the marginal or incremental cost of debt to the entity is based on the cost of newly issued debt, not on the cost of outstanding debt.


NEW QUESTION # 41
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