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Authentic IIA-CIA-Part3 Exam Dumps PDF - 2024 Updated
Passing the IIA-CIA-Part3 exam is an important milestone for candidates pursuing the CIA certification. It demonstrates their knowledge and proficiency in applying business concepts to internal auditing. It also helps them develop a deeper understanding of the business environment and its impact on internal auditing. Moreover, passing the exam can also lead to career advancement opportunities and higher salaries.
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.
NEW QUESTION # 173
The carrying amount cost minus accumulated depreciation) of property plant, and equipment disposed of in Year 2 was:
- A. US $20,000
- B. US $7,000
- C. US $32,000
- D. US $17,000
Answer: B
Explanation:
The cost of PPE disposed of is US $20,000$295,000 beginning PPE + 65,000 acquisitions - $340,000 ending PPE). The accumulated depreciation + $30,000 depreciation expense - $119,000 ending encountered depreciation. Thus, the carrying amount of PPE disposed of is US $7,000'.I I Or II i depreciation).
Balance sheets on December 31, Year 1, and December 31, Year 2, are presented below
NEW QUESTION # 174
If Bandit Co. reports expenses on an accrual basis, interest expense for the first year of operations is
- A. US $7,500
- B. US $5,000
- C. US $12,500
- D. US $10,000
Answer: A
Explanation:
Interest expense for the first year equals the US $5,000 payment made on October 1 plus the 3 months' accrued interest at year-end, or US $7,500$5,000 + $2,500).
NEW QUESTION # 175
Suppose that an entity has paid one of its liabilities t ice during the year in error The effects of this mistake would be?
- A. Assets and profit and equity} are understated, and liabilities are overstated.
- B. Assets and liabilities are understated.
- C. Assets, net income, and equity are unaffected
- D. Assets Liabilities, and equity are understated.
Answer: B
Explanation:
When a liability is paid, an entry debiting accounts payable and crediting cash is made. If an entity erroneously pays a liability twice, the accounts payable and cash accounts will be understated by the amount of the liability. Hence, assets and liabilities will be understated.
NEW QUESTION # 176
A company's financial balance sheet is presented below:
The company has net working capital of:
- A. $490
- B. $160
- C. $350
- D. $210
Answer: D
NEW QUESTION # 177
Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?
- A. We supply energy.
- B. We provide climate control in the home.
- C. We are a people-and-goods mover.
- D. We make movies.
Answer: D
NEW QUESTION # 178
An insurance firm that follows the systems development life cycle concept for all major information system projects is preparing to star[ a feasibility study for a proposed underwriting system. Some of the primary factors the feasibility study should include are:
- A. Possible vendors for the system and their reputation for quality.
- B. Exposure to computer viruses and other intrusions.
- C. Methods of implementation, such as parallel or cut-over.
- D. Technology and related costs.
Answer: D
Explanation:
The feasibility study should consider the activity to be automated, the needs of the user. The type of equipment required, the cost, and the potential benefit to the specific area and the company in general. Thus, technical feasibility and cost are determined during this stack
NEW QUESTION # 179
An entity allows customers to redeem 20 coupons for a toy cost US $3.00). Estimates are that 40% of coupons distributed will result in redemption. Since beginning the promotion this year, 4 million coupons were distributed and 1 million coupons redeemed. The adjusting entry to accrue for unredeemed coupons at year-end is
- A. Option A
- B. Option D
- C. Option C
- D. Option B
Answer: A
Explanation:
An expense and a provision should be accurate for the coupons still outstanding that are expected to be redeemed. Of the 4 million coupons distributed, 411%, or 1.6 million, are estimated to be redeemable. Of those, 1 million have already been redeemed, and 600,000 more are expected to be redeemed. The promotion requires 20 coupons to receive one toy, so, 30,000600,000 / 20) more toys will be required. Each toy costs US $3.00, creating a provision of US $90,00030,000 x $3.00).
NEW QUESTION # 180
Fulford Company applies the target pricing and costing approach. The following information about costs and revenues of Fulford's product are available for the year just ended:
Fulford plans to increase unit sales to 80,000 by reducing the product's unit price to US $320.
If Fulford desires a unit target operating income of 12CYo, by what amount must it reduce the full cost per unit?
- A. US $70.40
- B. US $32.00
- C. US $38.40
- D. US $80.00
Answer: A
Explanation:
Unit target operating income is US $38.40 $320 unit target price 12°X0). Hence, the unit target full cost is US $281.60 $320 - $38.40). The current full cost per unit is US $352.00 [($13,200,000 CGS + $7,920,000 other value chain operating costs) - 60,000 units sold], so the necessary reduction in the full cost per unit is US $70.40 $352.00 - $281.60).
NEW QUESTION # 181
Which of the following correctly describes the introduction of a government tax credit on investments?
- A. Corporate investments will have higher net present values, all else equal, than without the tax credit.
- B. Tax credits on investments are taxes that are typically levied on individual projects rather than on groups of projects.
- C. Tax credits on investments increase investment costs, and all else equal, reduce the level of corporate investment.
- D. Tax credits on investments are designed to restrain inflation.
Answer: A
Explanation:
An investment tax credit is an incentive because it directly reduces future tax payments. Thus, corporate investments will have higher net present values, all else equal, than without tax credits.
NEW QUESTION # 182
Which of the following professional organizations sets standards for quality and environmental audits?
- A. The Board of Environmental, Health, and Safety Auditor Certifications.
- B. The International Standards Organization.
- C. The Committee of Sponsoring Organizations of the Treadway Commission.
- D. The International Organization of Supreme Audit Institutions.
Answer: B
NEW QUESTION # 183
If ending inventory is underestimated due to an error in the physical count of items on hand, the cost of goods sold for the period will be =List A> and net earnings will be =List B>.
- A. Option C
- B. Option A
- C. Option D
- D. Option B
Answer: A
Explanation:
Cost of goods sold equals beginning inventory, plus purchases, minus ending inventory. If ending inventory is underestimated, cost of goods sold will be overestimated for the period. If cost of goods sold is overestimated, profit for the period will be underestimated.
NEW QUESTION # 184
A manager has difficulty motivating staff to improve productivity, despite establishing a lucrative individual reward system. Which of the following is most likely the cause of the difficulty?
- A. Low uncertainty avoidance.
- B. Low long-term orientation.
- C. High degree of masculinity.
- D. High collectivism.
Answer: D
NEW QUESTION # 185
A department store sells gift certificates that may be redeemed for merchandise. Each certificate expires 3 years after issuance. The revenue from the gift certificates should be recognized:
- A. In the period the certificates are sold.
- B. In the period the certificates are redeemed or in the period they expire if they are allowed to lapse.
- C. Evenly over 3 years from the date of issuance.
- D. In the period the certificates expire.
Answer: B
Explanation:
Income, which includes revenue and gains, should not be recognized until an increase future economic benefits related to an increase in an asset or a decrease in a liability is sufficiently certain and can be measured reliably_ These criteria are met when the certificates are redeemed or expire because the liability for redemptions will then decrease and economic benefits will be reliably measurable. On January 1, Year 1, a construction company signed a contract with a property management firm involving the construction of a large urban office tower. The total price of constructing the tower was agreed to be US $10 million with US $2 million being paid on the date of the agreement. Construction began immediately upon the signing of the contract and was expected to take 3 years to complete. The original estimate of total construction costs was US $8 million. During the year ended December 31, Year 1, US $4 million of construction costs were incurred, and engineering estimates indicated that the office tower was 30% complete at year-end. At year-end, the revised estimate of total construction costs was US $8.5 million and the properly management firm had been billed a further US $4 million, although only US $1 million of that amount had been collected by year-end.
NEW QUESTION # 186
An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?
- A. Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.
- B. Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.
- C. The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided.
- D. Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.
Answer: C
NEW QUESTION # 187
Effective internal control for application development should provide for which of the following?
I A project steering committee to initiate and oversee the system
II A technical systems programmer to evaluate systems software
III Feasibility studies to evaluate existing systems
IV The establishment of standards for systems design and programming
- A. I and Ill only.
- B. I, Ill, and IV only.
- C. II, Ill, and IV only
- D. I, II, and IV only
Answer: B
Explanation:
Effective systems development requires participation by top management. This can be achieved through a steering committee composed of higher-level representatives of system users. The committee approves or recommends projects and reviews their progress.
Studies of the economic, operational, and technical feasibility of new applications necessarily entail evaluations of existing systems. Another necessary control is the establishment of standards for system design and programming. Standards represent user and system requirements determined during systems analysis.
NEW QUESTION # 188
Which of the following risks would involve individuals attacking an oil company's IT system as a sign of solidarity against drilling in a focal area?
- A. Tampering
- B. Hacking
- C. Piracy
- D. Phishing
Answer: B
NEW QUESTION # 189
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