Pass Your IIA-CIA-Part3 Exam Easily - Real IIA-CIA-Part3 Practice Dump Updated Apr 09, 2022
2022 Realistic Verified Free IIA IIA-CIA-Part3 Exam Questions
NEW QUESTION 113
Which of me following responsibilities would ordinary fall under the help desk function of an organization?
- A. Management of infrastructure services including network management
- B. End-lo-end security architecture design
- C. Maintenance service items such as production support
- D. Physical hosting of mainframes and distributed servers
Answer: A
NEW QUESTION 114
Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?
- A. Tariff.
- B. Political.
- C. Social.
- D. Financial.
Answer: B
NEW QUESTION 115
While auditing an organization's customer call center, an internal auditor notices that key performance indicators show a positive trend despite the fact that there have been increasing customer complaints over the same period Which of the following audit recommendations would most likely correct the cause of this inconsistency?
- A. Review the the call center script used by customer service agents to interact with callers and update the script rf necessary
- B. Retrain call center staff on area processes and common technical issues that they will Likely be asked to resolve
- C. Increase the incentive for call center employees to complete calls quickly and raise the number of calls completed daily
- D. De-emphasize the importance of call center employees completing a certain number of calls per hour
Answer: A
NEW QUESTION 116
New data privacy laws require an organization to use collected customer information for me sole purpose of meeting the organization's business requirements. Which of the following best addresses the risk of the organization not complying with this objective?
- A. Encrypt the customer information retained by the organization
- B. Allocate access profiles for each end user of the information
- C. Establish policies that discipline those who misuse customer information
- D. Provide training on social engineering attacks
Answer: A
NEW QUESTION 117
An entity is subject to warranty claims. A reliable estimate is that between US $1 million and US $3 million will probably be paid out. No estimate of loss within this range is more likely than any other. The entity should:
- A. Disclose only a possible loss.
- B. Make no journal entry at this time.
- C. Defer a provision of US $1 million to US $3 million depending on the applicable national accounting standards.
- D. Recognize a provision of US $1 million to US $3 million depending on the applicable national accounting standards.
Answer: D
Explanation:
A provision is a liability of uncertain timing or amount. Recognition of provisions is appropriate when the entity has a legal or constructive present obligation results from a past event called an obligating event), it is probable that an outflow of economic benefits will be necessary to settle the obligation, and its amount can be reliably estimated. Thus, a provision should be recognized. Moreover, the amount recognized should be the best estimate of the expenditure required to settle the obligation. However, the amount within the reliable estimate of the range of the obligation that will be recognized will vary from country to country.
NEW QUESTION 118
Consideration consists of:
- A. Legal sufficiency and bargained-for exchange.
- B. Something with monetary value.
- C. Two promises.
- D. Each party's receiving an actual benefit only.
Answer: A
Explanation:
Consideration must be legally sufficient and intended as a bargained-for exchange. A promise has provided legally sufficient consideration if s)he incurs a legal detriment or if the promise receives a legal benefit An essential aspect of consideration is that it be bargained for, and given in exchange for, the consideration provided by the other party. That is, consideration is mutual.
NEW QUESTION 119
At what point during the systems development process should an internal auditor verify that the new application's connectivity to the organization's other systems has been established correctly?
- A. During implementation of the new application.
- B. During maintenance of the new application.
- C. Prior to testing the new application.
- D. During testing of the new application.
Answer: C
NEW QUESTION 120
Technological uncertainty, subsidy, and spin-offs are usually characteristics of:
- A. Emerging industries.
- B. Fragmented industries.
- C. Declining industries.
- D. Mature industries.
Answer: A
NEW QUESTION 121
Assuming an available-for-sale financial asset that is not part of a hedge is remeasured to fair value at the balance sheet, the gain or loss not arising from foreign exchange transactions or impairment:
- A. May be recognized in profit or loss or directly in equity.
- B. Must be recognized directly in equity.
- C. Must be recognized in profit or loss.
- D. Must be recognized in profit or loss if the result is a loss and directly in equity if the result is a gain.
Answer: B
Explanation:
A gain or loss on an available-for-sale financial asset that is not part of a hedge is recognized directly in equity through the statement of changes in equity except for impairment losses and foreign exchange gains and losses. The accumulated remeasurement gain or loss is included in profit or loss when the asset is derecognized.
NEW QUESTION 122
During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?
- A. Business impact analysis.
- B. Testing.
- C. Scope and initiation phase.
- D. Plan development.
Answer: A
NEW QUESTION 123
According to Porter's model of competitive strategy, which of the following is a generic strategy?
1. Differentiation.
2. Competitive advantage.
3. Focused differentiation.
4. Cost focus.
- A. 1, 2, 3, and 4
- B. 2 only
- C. 1, 3, and 4 only
- D. 3 and 4 only
Answer: C
NEW QUESTION 124
An organization has a complex systems infrastructure consisting of multiple internally developed, off the shelf, and purchased but significantly customized applications. Some of these applications share databases or process data that is used by another stand-alone application, and interfaces have been written to move data between these applications as needed through batch processing Which of the following situations presents the greatest risk exposure given this environment?
- A. Documentation of each system and its interactions, interfaces, and dependencies with other systems and databases is not gathered and maintained.
- B. The job scheduling tool frequently malfunctions, causing scheduled jobs not to run. An error message is sent to IT personnel when a job fails.
- C. Batch processing jobs include key financial data that is not posted to the accounting system until the next day. preventing real-time queries.
- D. The implementation of a major update for a key application is delayed until any potential
Answer: D
Explanation:
interdependencies are identified and analyzed.
Which of the following stages of contracting focuses on aligning the markets with objectives of the organization?
NEW QUESTION 125
Heniser Pet Foods manufactures two products, X and Y.
The unit contribution margins for Products X and Y are US $30 and US $50, respectively. Each product uses Materials A and B. Product X uses 6 pounds of Material A and 12 pounds of Material B. Product Y uses 12 pounds of Material A and 8 pounds of Material B. The company can purchase only 1,200 pounds of Material A and 1,760 pounds of Material B. The optimal mix of products to manufacture is:
- A. 40 units of X and 120 units of Y.
- B. 146 units of X and 0 units of Y.
- C. 120 units of X and 40 units of Y.
- D. 0 units of X and 100 units of Y.
Answer: C
Explanation:
Linear programming is a technique used to maximize a contribution margin function or to minimize a cost function, subject to constraints such as scarce resources or minimum/maximum levels of production. Thus, linear programming is often used for planning resource allocations. In this problem, the equation to be maximized, called the objective function, is: US $30X + $50Y. This equation is to be maximized subject to the constraints on materials. The two constraint functions are:
Material A: 6X+12Y< 1,200 Material B 12X + 8Y< 1,760
One way to solve this problem is to graph the constraint lines and determine the feasible area. The optimal production level is at an extreme point within the feasible area. The graph shows that a production level of 120 units of X and 40 units of Y is a feasible production level that maximizes the contribution margin.
NEW QUESTION 126
When using PERT (Program Evaluation Review Technique), the expected time for an activity when given an optimistic time (a), a pessimistic time (b),andamostlikelytime(m) is calculated by which one of the following formulas?
- A. (a + 4m+b) + 6
- B. (4abm) + 6
- C. (a + b) + 2
- D. (b - a) + 2
Answer: A
Explanation:
PERT was developed to aid managers in controlling large, complex projects. PERT analysis includes probabilistic estimates of activity completion times. Three time estimates are made: optimistic, most likely, and pessimistic. The time estimates for an activity are assumed to approximate a beta probability distribution. PERT approximates the mean of the beta distribution by dividing the sum of the optimistic time, the pessimistic time, and four times the most likely time by six.
NEW QUESTION 127
Which of the following statements about COBIT is not true?
- A. COBIT helps management understand and manage the risks associated with information technology (IT) processes.
- B. COBIT control objectives are specific to various IT platforms and help determine minimum controls.
- C. COBIT provides management with the capability to conduct self-assessments against industry best practices.
- D. Management needs to determine the cost-benefit ratio of adopting COBIT control objectives.
Answer: B
NEW QUESTION 128
A firm sells its product in a foreign market for a much higher price than in its home market.
The reason is most likely:
- A. Price elasticity of demand.
- B. Dumping.
- C. Gray market activity.
- D. Price escalation.
Answer: D
Explanation:
Price escalation is caused by an accumulation of additional costs, e.g., currency fluctuations; transportation expenses; profits earned by importers, wholesalers, and retailers; and import duties.
NEW QUESTION 129
Which of the following pricing policies involves the selling company setting freight charges to customers at the actual average freight cost?
- A. Uniform delivered pricing.
- B. Zone pricing.
- C. FOB-origin pricing.
- D. Freight absorption pricing.
Answer: A
Explanation:
In uniform delivered pricing, the company charges the same price, inclusive of shipping costs, to all customers, regardless of their location. This price is the company's average actual freight cost. Thus, both nearby and distant customers are charged the same amount. This policy is easy to administer, permits the company to advertise one price nationwide And facilitates marketing to faraway customers.
NEW QUESTION 130
During the 10-year life of the asset, the entity will report as deferred tax an amount that:
- A. Increases and then decreases.
- B. Increases steadily for the 10 years.
- C. Is constant.
- D. Decreases and then increases.
Answer: A
Explanation:
The cumulative deferred tax increases, peaks, and then decreases to zero over the life of the asset. In the early years, the asset is depreciated more quickly for tax purposes than for financial reporting purposes. This temporary difference reverses in later years. Hence, in the early years, actual taxes payable will be less than tax expense reported in the financial statements and a deferred tax liability will be recognized. By the end of the asset's useful life, cumulative actual taxes paid will equal cumulative reported tax expense, so the deferred tax balance will be zero. An entity has purchased an asset with a 10-y.'ar 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 131
Many companies recognize three major categories of costs of manufacturing a product. These are direct materials, direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile?
- A. The delivery costs for the tires on each automobile.
- B. The cost of small tools used in mounting tires on each automobile.
- C. The cost of the laborers who place tires on each automobile.
- D. The cost of the tires on each automobile.
Answer: B
Explanation:
The cost of small tools used in mounting tires cannot be identified solely with the manufacture of a specific automobile. This cost should be treated as factory overhead because it is identifiable with the production process.
NEW QUESTION 132
The marketing department's proposal was finally accepted, and the marketing employees attended a class in using the report writer. Soon, the marketing analysts found that it was easier to download the data and manipulate it on their own desktop computers in spreadsheets than to perform all the data manipulation on the server. One analyst became highly skilled at downloading and wrote downloading command sequences for the other employees. When the analyst left the company for a better job, the department had problems making modifications to these command sequences. The department's problems are most likely due to inadequate:
- A. Documentation.
- B. Data backup.
- C. Program testing.
- D. Anti-virus software.
Answer: A
Explanation:
One risk of end-user computing is that documentation may be poor and that important knowledge may be limited to one person. The command sequences should have been documented so that other analysts could use and modify them readily.
NEW QUESTION 133
A nation has a progressive tax structure with income tax brackets that are not indexed to inflation. An individual taxpayer experiences an income increase just equal to the general inflation rate moves into a higher tax bracket. The individual taxpayer will then experience List A- nominal taxes payable and- List B- real taxes payable.
- A. Option D
- B. Option C
- C. Option B
- D. Option A
Answer: D
Explanation:
Because the taxpayer's income increase equal to the general inflation rate, no real no real increase in income has occurred. However, some or all of the increase is subject to a higher tax rate. Accordingly the taxpayer will experience an increase in both nominal taxes payable and in real taxes payable.
NEW QUESTION 134
Which of the following costs would be incurred in an inventory stockout?
- A. Lost customers, safety stock, and backorder.
- B. Lost sales, safety stock, and backorder.
- C. Lost sales, lost customers, and backorder.
- D. Lost sales, lost customers, and safety stock.
Answer: C
NEW QUESTION 135
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