Sep-2021 Latest PremiumVCEDump IIA-CIA-Part3 Exam Dumps with PDF and Exam Engine Free Updated Today!
Following are some new IIA-CIA-Part3 Real Exam Questions!
NEW QUESTION 108
The halo effect may diminish the accuracy of the evaluation of employees. Which of the following is an example?
- A. A manager rates some employees as very good and some as very poor.
- B. A manager's judgment of one positive trait affects his/her rating of other traits.
- C. The most recent behavior overshadows overall performance.
- D. All personnel who work together are rated within the same narrow range.
Answer: B
Explanation:
The halo effect diminishes the accuracy of an evaluation when a manager's judgment on one positive trait affects the rating of other traits.
NEW QUESTION 109
Which of the following is a role of the board of directors in the governance process?
- A. Review and approve operational goals and objectives.
- B. Conduct periodic assessments of the organization's governance systems.
- C. Implement an effective system of internal controls to support the organization's governance systems.
- D. Obtain assurance concerning the effectiveness of the organization's governance systems.
Answer: D
NEW QUESTION 110
An entity has US $100 of current assets, US $100 of fixed assets, US $100 of debt, and US $100 of equity. If it then leases a US $75 asset in a(n) ,List A, lease agreement, the debt-to-assets ratio of the entity will be <List B>
- A. Option A
- B. Option D
- C. Option B
- D. Option C
Answer: B
Explanation:
If the lease is a finance lease, both the asset and the obligation for future payments are
recorded. The entity would have current assets of US $100, debt of US $175$100 + $75), fixed assets of US $175$100 + 175), and equity of US $100. Hence, the debt-to-assets ratio would be 64%US $175 275).
NEW QUESTION 111
CORRECT TEXT
A has a times-interest-earned ratio of:
A Pour times
B. Five times
C. 10 times
D. 15 times
Answer:
Explanation:
B
NEW QUESTION 112
Which of the following does not provide operational assurance that a computer system is operating properly?
- A. Testing policy compliance.
- B. Performing a system audit.
- C. Conducting system monitoring.
- D. Making system changes.
Answer: D
NEW QUESTION 113
In which of the following plans is an employee most likely to find guidance on action and performance standards?
- A. Operational plans.
- B. Mission plans.
- C. Tactical plans.
- D. Strategic plans.
Answer: A
NEW QUESTION 114
Assume that the optimal capital budget for the company is US $150 million. The marginal cost of capital and the appropriate discount rate to use in evaluating investment proposals for this company would be:
- A. 10%
- B. 8%
- C. 6%
- D. 12%
Answer: A
Explanation:
The appropriate discount rate the cost of capital used in capital budgeting) theoretically is determined at the intersection of the IOS and MCC schedules. This intersection is at an r..1r-~:0 of IC I% and an optimal capital budget of US $125 million. However, if the optimal capital budget is assumed to be US $150 million, the company is still in the second interval of the MCC schedule. The marginal cost of financing in this part of the schedule is 10%.
NEW QUESTION 115
The owner of a newly established janitorial entity is deciding what type of checking to open. The entity is planning to keep a US $500 minimum balance in the account for emergencies and plans to write roughly 80 checks per month. The bank charges US $10 per month plus a US $0.10 per check charge for a standard business checking account with no minimum balance. The entity also has the option of a premium business checking account that requires a US $2,500 minimum balance but has no monthly fees or per check charges If the entity's cost of funds is 10%. which account should the entity choose?
- A. Standard account, because the savings is US $16 per year.
- B. Premium account, because 'the savings is US $16 per year.
- C. Standard account, because the savings is US $34 per year.
- D. Premium account, because the savings is US $34 per year.
Answer: B
Explanation:
The standard account will cost US $10 per month plus US $8 in check charges $.10 x 80 checks), for a total of US $18 per month US $216 per year). The premium account has no check charges. But it will require the depositor to maintain a balance of US $2,000 more than desired. At a 10% cost of capital, the incremental US $2,000 minimum deposit will cost US $200 per year. Thus, the premium account should be selected because it is cheaper by US $16 per year.
NEW QUESTION 116
Which of the following statements about slack time and milestones are true?
1. Slack time represents the amount of time a task may be delayed without delaying the entire project.
2. A milestone is a moment in time that marks the completion of the project's major deliverables.
3. Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.
4. A milestone requires resource allocation and needs time to be completed.
- A. 1, 2, and 3 only
- B. 1, 2, 3, and 4
- C. 2 and 3 only
- D. 1 and 4 only
Answer: A
NEW QUESTION 117
The best evidence that contingency planning is effective is to have:
- A. Comprehensive documentation of the plan.
- B. Successful testing of the plan.
- C. No processing interruptions during the past year.
- D. Sign off on the plan by the internal audit activity.
Answer: B
Explanation:
The only way to know whether contingency planning has been effective is to test the plan, by simulating an interruption or by conducting a paper test with a walk-through of recovery procedures, alternative communication systems and site facilities, information systems backup disaster recovery, business impact assessments and resumption plans, procedures for restoring utility services, and maintenance procedures for ensuring the readiness of the organization in the event of emergency of disaster.
NEW QUESTION 118
A merchandising company had the following inventory related transactions in its first year of operations:
If the company uses the first-in-first-out FIFO method of inventory valuation, its ending inventory balance rounded will be:
- A. US $70,759
- B. US $62,000
- C. US $78,750
- D. US $84,000
Answer: C
Explanation:
The first-in-first-out FIFO method assumes that the oldest units are used first and the newest units remain in inventory. Because the company has 12,000 units remaining, ending inventory equals US $78,750 [(5,000 $7) +7,000 $6.25)].
NEW QUESTION 119
Which of the following are typical responsibilities for operational management within a risk
management program?
1.Implementing corrective actions to address process deficiencies.
2.Identifying shifts in the organization's risk management environment.
3.Providing guidance and training on risk management processes.
4.Assessing the impact of mitigation strategies and activities.
- A. 3 and 4 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 1 and 2 only
Answer: C
NEW QUESTION 120
Which of the following is an example of an application system control?
- A. Field amounts contain an upper or lower limit.
- B. Error listings are generated and promptly remediated.
- C. Data values fall within a prescribed range.
- D. Report distribution is restricted to authorized personnel.
Answer: C
NEW QUESTION 121
A local area network LAN) is best described as a(n):
- A. System to allow computer users to meet and share ideas and information.
- B. Method to offer specialized software, hardware, and data handling techniques that improve effectiveness and reduce costs.
- C. Computer system that connects computers of all sizes, workstations, terminals, and other devices within a limited proximity.
- D. Electronic library containing millions of items of data that can be reviewed, retrieved, and analyzed.
Answer: C
Explanation:
A LAN is a local distributed computer system, often housed within a single building. Computers, communication devices, and other equipment are linked by dedicated channels. Special software facilitates efficient data communication among the hardware devices.
NEW QUESTION 122
An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud. Which of the following controls would be least effective in detecting any potential fraudulent activity?
- A. Monthly management review of all contractor activity.
- B. Documented policy and procedures.
- C. Periodic account reconciliation of contractor charges.
- D. Exception report identifying payment anomalies.
Answer: B
NEW QUESTION 123
During the year, an entity's balance sheet accounts increased by the following amounts: Profit for the year was US $42,000. The only other change in retained earnings was for the
declaration of cash dividends. The amount of dividends declared was:
- A. US $33,000 D US $67,000
- B. US $2,000
- C. US $17,000
Answer: C
Explanation:
Assets equals liabilities plus equity. Given an increase of US $180,000 in assets, the sum of liabilities plus equity must also have increased by US $180,000. Because liabilities share capital, and share premium increased by US $155,000 + $15,000) retained earnings must have increased by US $25,000$180,000 - $155,00050,000 + $90,000 +$15,000) retained earnings must have been US $17,000$42,000 - $25,000).
NEW QUESTION 124
A company} is formulating its plans for the coming year, including the preparation of its cash budget. Historically, 30% of the company's sales are cash sales. The remaining 70% are credit sales with the following collection pattern.
Sales for the first five months of the coming year are forecast as follows.
For the month of April, the total cash receipts from sales and collections on account would be:
- A. US $3,781,600
- B. US $4,025,200
- C. US $4,408,000
- D. US $3,729,968
Answer: A
Explanation:
The cash receipts for April equal April's cash sales US $4,000,000 x 30°l0 = US $1,200,000), 40% of April's credit sales, and 580/o of March's credit sales. Consequently, total cash receipts equal US $3, 78-1,600 [$1,200,000 + $4,000,000 40°lax 70°/o) + $8,600,000 68°f0 70%)].A bank has two drive-in lanes to serve customers: one attached to the bank itself and one on an island. One teller serves bath stations. The bank is interested in determining the average waiting times of customers and has developed a model based on random numbers. The two key factors are the time between successive car arrivals and the time customers wait in line. Assume that the analysis begins with cars just arriving at bath service windows. bath requiring 3 minutes of service time. Car 1 is the attached window attached to the bank unless that window has more cars waiting than the island window. The lone teller will always serve the car that arrived first. If two cars arrive simultaneously, the one at the attached window will be served before the one at the island.
NEW QUESTION 125
In Year 2, a manufacturing company instituted a total quality management TQM) program producing the following report:
On the basis of this report, which one of the fallowing statements is most likely true?
- A. An increase in conformance costs resulted in a higher quality product and therefore resulted in a decrease in nonconformance costs.
- B. Quality costs, such as returns and repairs under warranty, decreased by 40%.
- C. An increase in inspection costs was solely responsible for the decrease in quality costs.
- D. Quality costs, such as scrap and rework, decreased by 48%.
Answer: A
Explanation:
TQM emphasizes the supplier's relationship with the customer and recognizes that everyone in a process is at some time a customer or supplier of someone else, either within or outside the organization. The costs of quality include costs of conformance and costs of nonconformance. Casts of conformance include prevention costs and appraisal inspection) costs. Nonconformance costs are composed of internal failure costs and external failure costs, such as lost opportunity. Conformance costs prevention and appraisal) increased substantially, whereas the nonconformance casts internal and external failure) decreased.
Hence, the increase in conformance casts resulted in a higher-quality product.
NEW QUESTION 126
Assume that C Company offers to perform the operation 2 function on 1,000 units at a unit price of US $40, excluding direct materials cast. Also assume that Y Company offers to perform the Operation 1 function an 1,000 units at a unit price of US $7, excluding direct materials cost. Which of these mutually exclusive offers is acceptable?
- A. C but not Y.
- B. Neither offer should be accepted.
- C. X or Y.
- D. Y but not C.
Answer: A
Explanation:
KG's offer should be accepted because its cast is US $40,000 1,000 units x $40), but the increase in throughput contribution is US $72,000 [1,000 units $120 unit price - $48 E' 1 per unit)]. Hence, the relevant cost of QC's offer is less than the incremental throughput contribution. ms's offer effectively increases the capacity of the bottleneck operation. Y's offer should be rejected because, even though its US $7 unit price is less than the US $8 unit operating cost excluding direct materials) for Operation 1. it will result in the incurrence of additional casts with no increase in throughput contribution, given that Operation 2 is already producing at its 150,000-unit capacity.
NEW QUESTION 127
Which of the following costs would be incurred in an inventory stockout?
- A. Lost sales, safety stock, and backorder.
- B. Lost sales, lost customers, and safety stock.
- C. Lost sales, lost customers, and backorder.
- D. Lost customers, safety stock, and backorder.
Answer: C
NEW QUESTION 128
On December 31, Year 1, XYZ led 5-year bonds with a face amount of US $1 million.
The bonds carry a stated interest rate of 10% and were sold at par. Interest is payable annually on December 31 According to the provisions of the bond denture, XYZ was to make annual deposits into a bond sinking fund (beginning December 31, Year 2) to accumulate the funds necessary to retire the bonds at their maturity. On December 31 Year 5, all required interest payments and sinking-fund payments due to date had been made on schedule. If the sinking-fund assets are properly classified as noncurrent. How should the balance of bonds payable be classified on the December 31 Year 5 balance sheet?
- A. Current liability
- B. Contra to long-term investments.
- C. Long-term liability.
- D. Deferred credit.
Answer: A
Explanation:
A current liability is an obligation on that is expected to be settled within the normal operating cycle or is due to be settled within1 2 months of the balance sheet date. Any other liability is noncurrent. Some current liabilities are included in the working capital employed in the normal operating e.g., trade payables and accrued employee operating costs. Current liabilities not settled within the normal operating cycle include the current part of interest-bearing debt, dividends, income taxes, and bank overdrafts. Thus, the bends payable should be classified as current because they are due to be settled within 12 months. Under the Standards, the classification of the sinking-fund assets is irrelevant to the classification of the bond payable.
NEW QUESTION 129
......
Resources From:
- 2021 Latest PremiumVCEDump IIA-CIA-Part3 Exam Dumps (PDF & Exam Engine) Free Share: https://www.premiumvcedump.com/IIA/valid-IIA-CIA-Part3-premium-vce-exam-dumps.html
- 2021 Latest PremiumVCEDump IIA-CIA-Part3 PDF and IIA-CIA-Part3 Exam Dumps Free Share: https://drive.google.com/open?id=1xWjB-95Cr4QPctAukThkhFu_4P4iZyPo
Free Resources from PremiumVCEDump, We Devoted to Helping You 100% Pass All Exams!