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Business Knowledge for Internal Auditing

Last Update 19 hours ago Total Questions : 516

The Business Knowledge for Internal Auditing content is now fully updated, with all current exam questions added 19 hours ago. Deciding to include IIA-CIA-Part3 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our IIA-CIA-Part3 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these IIA-CIA-Part3 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Business Knowledge for Internal Auditing practice test comfortably within the allotted time.

Question # 4

The budgeted cost of work performed is a metric best used to measure which project management activity?

A.

Resource planning.

B.

Cost estimating

C.

Cost budgeting.

D.

Cost control.

Question # 5

When executive compensation is based on the organization's financial results, which of the following situations is most likely to arise?

A.

The organization reports inappropriate estimates and accruals due to poof accounting controls.

B.

The organization uses an unreliable process forgathering and reporting executive compensation data.

C.

The organization experiences increasing discontent of employees, if executives are eligible for compensation amounts that are deemed unreasonable.

D.

The organization encourages employee behavior that is inconsistent with the interests of relevant stakeholders.

Question # 6

In accounting, which of the following statements is true regarding the terms debit and credit?

A.

Debit indicates the right side of an account and credit the left side

B.

Debit means an increase in an account and credit means a decrease.

C.

Credit indicates the right side of an account and debit the left side.

D.

Credit means an increase in an account and debit means a decrease

Question # 7

Which of following best demonstrates the application of the cost principle?

A.

A company reports trading and investment securities at their market cost

B.

A building purchased last year for $1 million is currently worth ©1.2 million, but the company still reports the building at $1 million.

C.

A building purchased last year for ©1 million is currently worth £1,2 million , and the company adjusts the records to reflect the current value

D.

A company reports assets at either historical or fair value, depending which is closer to market value.

Question # 8

An organization produces products X and Y. The materials used for the production of both products are limited to 500 Kilograms

(kg ) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows in order to maximize profit, how much of product Y should the organization produce each month?

$10 $13

2 kg

70 units

6 kg

120 units

A.

50 units

B.

60 units

C.

70 units

D.

1:20 units

Question # 9

Which component of an organization's cybersecurity risk assessment framework would allow management to implement user controls based on a user's role?

A.

Prompt response and remediation policy

B.

Inventory of information assets

C.

Information access management

D.

Standard security configurations

Question # 10

Following an evaluation of an organization's IT controls, an internal auditor suggested improving the process where results are compared against the input. Which of the following IT controls would the Internal auditor recommend?

A.

Output controls.

B.

Input controls

C.

Processing controls.

D.

Integrity controls.

Question # 11

Which of the following statements describes the typical benefit of using a flat organizational structure for the internal audit activity, compared to a hierarchical structure?

A.

A flat structure results in lower operating and support costs than a hierarchical structure.

B.

A flat structure results in a stable and very collaborative environment.

C.

A flat structure enables field auditors to report to and learn from senior auditors.

D.

A flat structure is more dynamic and offers more opportunities for advancement than a hierarchical structure.

Question # 12

Which of the following statements is true regarding an investee that received a dividend distribution from an entity and is presumed to have little influence over the entity?

A.

The cash dividends received increase the investee investment account accordingly.

B.

The investee must adjust the investment account by the ownership interest

C.

The investment account is adjusted downward by the percentage of ownership.

D.

The investee must record the cash dividends as dividend revenue

Question # 13

Which of the following characteristics applies to an organization that adopts a flat structure?

A.

The structure is dispersed geographically

B.

The hierarchy levels are more numerous.

C.

The span of control is wide

D.

The tower-level managers are encouraged to exercise creativity when solving problems

Question # 14

Management is pondering the following question:

"How does our organization compete?"

This question pertains to which of the following levels of strategy?

A.

Functional-level strategy

B.

Corporate-level strategy.

C.

Business-level strategy,

D.

DepartmentsHevet strategy

Question # 15

Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange (EDI)?

A.

A just-in-time purchasing environment

B.

A large volume of custom purchases

C.

A variable volume sensitive to material cost

D.

A currently inefficient purchasing process

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