IIA IIA-CIA-PART3: BUSINESS KNOWLEDGE FOR INTERNAL AUDITING TEST QUESTIONS - LEAD2PASS PASS EXAM

IIA IIA-CIA-Part3: Business Knowledge for Internal Auditing test questions - Lead2pass pass exam

IIA IIA-CIA-Part3: Business Knowledge for Internal Auditing test questions - Lead2pass pass exam

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To be eligible to take the IIA-CIA-Part3 exam, candidates must have completed the two other exams required for the CIA certification: IIA-CIA-Part1 (Essentials of Internal Auditing) and IIA-CIA-Part2 (Practice of Internal Auditing). Candidates must also have at least 24 months of internal auditing experience or equivalent education or other relevant experience. IIA-CIA-Part3 Exam consists of 100 multiple-choice questions that must be completed within a 2.5-hour time frame.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q250-Q255):

NEW QUESTION # 250
Which of the following is a characteristic of total quality management TQM)?

  • A. On-the-job training by other workers.
  • B. Quality by final inspection.
  • C. Management by objectives.
  • D. Education and self-improvement.

Answer: D

Explanation:
According to management theorist VV. Edwards Deming's well-known 14 points. Education and self-improvement are essential. Knowledge is opportunity. Hence. Continuous
improvement should be everyone's primary career objective.


NEW QUESTION # 251
Several surveys paint out that most managers use full product casts, including unit fixed casts and unit variable costs, in developing cast-based pricing. Which one of the following is least associated with cost-based pricing?

  • A. Price justification.
  • B. Fixed-cost recovery.
  • C. Target pricing.
  • D. Price stability.

Answer: C

Explanation:
A target price is the expected market price of a product, given the company's knowledge of its customers and competitors. Hence, under target pricing, the sales price is known before the product is developed. Subtracting the unit target profit margin determines the long-term unit target cast. If cost-cutting measures do not permit the product to be made at or below the target cast, it will be abandoned.


NEW QUESTION # 252
A large retail customer made an offer to buy 10.000 units at a special price of $7 per unit. The manufacturer usually sells each unit for $10, Variable Manufacturing costs are 55 per unit and fixed manufacturing costs are
$3 per unit. For the manufacturer to accept the offer, which of the following assumptions needs to be true?

  • A. The manufacturer can fulfill the order without expanding the capacities of the production facilities.
  • B. The manufacturer's production facilities are currently operating at full capacity.
  • C. Costs related to accepting this offer can be absorbed through the sale of other products.
  • D. Fixed and Variable manufacturing costs are less than the special offer selling price.

Answer: C


NEW QUESTION # 253
An audit of the electronic data interchange EDI) area of a banking group revealed the facts listed below. Which one indicates the need for improved internal control?

  • A. Branch office employees may access the mainframe with a single call via modem.
  • B. Employees may only access the computer system via an ID and an encrypted password.
  • C. Certain types of transactions may only be made at specific terminals.
  • D. The system employs message sequencing as a way to monitor data transmissions.

Answer: A

Explanation:
The system should employ automatic dial-back to prevent intrusion by unauthorized parties. This procedure accepts an incoming modem call, disconnects, and automatically dials back a prearranged number to establish a permanent connection for data transfer or inquiry.


NEW QUESTION # 254
A traditional quality control process in manufacturing consists of mass inspection of goods only at the end of a production process. A major deficiency of the traditional control process is that:

  • A. It does not focus on improving the entire production process.
  • B. It is not possible to rework defective items.
  • C. It is not 100% effective.
  • D. It is expensive to do the inspections at the end of the process.

Answer: A

Explanation:
The process used to produce the goods is not thoroughly reviewed and evaluated for efficiency and effectiveness. Preventing defects and increasing efficiency by improving the production process raises quality standards and decreases costs.


NEW QUESTION # 255
......

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