Authentic IIA-CIA-Part3 Dumps With 100% Passing Rate Practice Tests Dumps
IIA IIA-CIA-Part3 Real Exam Questions Guaranteed Updated Dump from TroytecDumps
IIA IIA-CIA-Part3 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
| Topic 5 |
|
| Topic 6 |
|
| Topic 7 |
|
| Topic 8 |
|
| Topic 9 |
|
| Topic 10 |
|
| Topic 11 |
|
| Topic 12 |
|
NEW QUESTION 13
The first step in determining product price is:
- A. Selecting a pricing method.
- B. Determining the cost of the product.
- C. Evaluating prices set by the competitors.
- D. Developing pricing objectives.
Answer: D
NEW QUESTION 14
The most important component of quality control is:
- A. Ensuring goods and services conform to the design specifications.
- B. Determining the appropriate timing of inspections.
- C. Satisfying upper management.
- D. Conforming with ISO-9000 specifications.
Answer: A
Explanation:
The intent of quality control is to ensure that goods and services conform to the design
specifications. Whether the focus is on feed forward, feedback, or concurrent control, the emphasis is on ensuring product or service conformity.
NEW QUESTION 15
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
- A. Select a sample of records from the database and ensure it matches supporting documentation.
- B. Use a test program to simulate the normal data entering process.
- C. Submit batches of test transactions through the current system and verify with expected results.
- D. Evaluate compliance with the organization's change management process.
Answer: A
NEW QUESTION 16
The appropriate discount rate to use in valuing a business combination is the:
- A. Combined entity's cost of equity.
- B. Acquirer's cost of equity.
- C. Acquirer's weighted average cost of capital.
- D. Combined entity's cost of debt.
Answer: A
Explanation:
If the not incremental cash flows to the acquirer's shareholders are to be calculated, the discount rate used should be the cost of equity capital. Moreover, this rate should reflect the risk associated with the use of funds rather than their source. The rate therefore should not be the cost of capital of the acquirer but rather the cost of equity of the acquire after the combination. This calculation requires a new estimate of beta to be used in the Capital Asset Pricing Model.
NEW QUESTION 17
A Gantt chart:
- A. Shows only the activities along the critical path of a network.
- B. Is used for determining an optimal product mix.
- C. Shows the critical path for a project.
- D. Does not necessarily show the critical path through a network.
Answer: D
Explanation:
The major advantage of a Gantt chart is its simplicity: It requires no special tools or mathematics. However, it depicts only the interrelationships between tasks in a limited way. Thus, trying to identify a project's critical path from a Gantt chart may not be feasible.
NEW QUESTION 18
In PERT, slack is the:
- A. Path that has the largest amount of time associated with it.
- B. Number of days an activity can be delayed without forcing a delay for the entire project.
- C. Uncertainty associated with time estimates.
- D. Difference between the latest starting time and earliest finishing time.
Answer: B
Explanation:
Slack is the amount of time that commencement of an activity can be delayed without forcing a delay of the entire project.
NEW QUESTION 19
A building contractor has a fixed-price contract to construct a large building. It is estimated that the building will take 2 years to complete. Progress billings will be sent to the customer at quarterly intervals. Which of the following describes the preferable point for revenue recognition for this contract if the outcome of the contract can be estimated reliably?
- A. As cash is received.
- B. When the contract is completed.
- C. After the contract is signed.
- D. As progress is made toward completion of the contract.
Answer: D
Explanation:
Under the percentage-of-completion method, revenues and expenses are recognize based on the stage of completion at the balance sheet date if the outcome of the contract can be estimated reliably. For a fixed-price contract, the outcome can be estimated reliably if total revenue can be measured reliably.2) it is probable that the economic benefits of the contract will flow to the enterprise.3) contract costs to complete and stage of completion can be measured reliably, and4) contract costs can be clearly identified and measured reliably so that actual and estimated costs can be compared.
NEW QUESTION 20
The breakeven point in unit sales for Year 1 is:
- A. 36,495 units.
- B. 46.080 units.
- C. 42.240 units.
- D. 56.320 units.
Answer: B
Explanation:
The breakeven point in unit sales equals total rests divided by the unit contribution margin UCM). Total fixed costs are US $1,520,640 $600,000 + 7,00 u + $352,800), and the UCM is US $33 [$4,950,000 contribution margin sales minus variable costs) -100,000 units sold]. Hence, the breakeven point in unit sales is 46,080 units US $1,520,640 + $33). Data regarding Year 1 operations for an enterprise that had no beginning or ending inventories are as follows:
The enterprise estimates that next year direct materials costs will increase by 10% and direct labor costs will increase by U' To U. unit to US $5.40 per unit. In addition, fixed selling expenses will increase by US $29,520_ All other costs will b. incurred at the same rates or amounts as the current year.
NEW QUESTION 21
Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?
- A. The "Funds Needed" line will point downward with a minimal slope.
- B. The "Funds Needed" line will point downward with an extreme slope.
- C. The "Funds Needed" line will remain pointed upward, but will become more steep.
- D. The "Funds Needed" line will remain pointed upward, but will become less steep.
Answer: C
NEW QUESTION 22
At December 31 of Year 1, an entity had a provision of US $40,000 for the "Estimated
Liability under Warranties" account. During Year 2, the entity sold 1,000 new units under warranties reliably estimated at US $100 per unit. The actual parts and labor warranty expenditures for Year 2 were US $90,000. Warranty expense for Year 2 should be
- A. US $50,000
- B. US $90,000
- C. US $40,000
- D. US $100,000
Answer: D
Explanation:
Recognition of provisions is appropriate when the entity has a legal or constructive present obligation resulting 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. Accordingly, a provision should be recognized for warranty expense in the period in which the matching revenue is recorded. Thus, the debit to warranty expense and the credit to provision for warranty expense in Year 2 is US $100,0001,000 units x $100).
NEW QUESTION 23
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 following statements is most likely true?
- A. Quality costs, such as returns and repairs under warranty, decreased by 40%.
- B. An increase in inspection costs was solely responsible for the decrease in quality costs.
- C. An increase in prevention and appraisal costs resulted in a higher quality product and therefore resulted in a decrease in failure costs.
- D. Quality costs, such as scrap and rework, decreased by 48%.
Answer: C
Explanation:
Prevention and appraisal costs increased substantially, but internal and external failure costs decreased. Thus, the soundest conclusion is that the increase in prevention and appraisal costs resulted in a higher-quality product.
NEW QUESTION 24
An organization recently documented its procedures for recovering systems and data after a disaster How are these documented procedures most likely to be used during a disaster simulation exercise''
- A. To help identify training needs across the functional areas required to recover systems and data.
- B. To help validate the contact information of key personnel required to recover systems and data
- C. To help property configure mass communication notification tools
- D. To help ensure that the team members who are required to recover systems and data understand their roles.
Answer: D
NEW QUESTION 25
The feasible solution region is bounded by the lines connecting points:
- A. 2, 4, 5 6, and 8.
- B. 3, 4, 6, and 7
- C. 3, 5, 6, and 7.
- D. 1, 5, 6, and 8.
Answer: B
Explanation:
A model consisting of a system of functions may be used to optimize an objective function. If the functions in the model are all linear, the model is a linear programming model. Linear programming is a technique to determine optimal resource allocation. Several solution methods are available to solve linear programming problems. The graphical method, the easiest technique, is limited to simple problems. Here, the graph consists of three lines, each representing a production constraint. The lines connecting points 3, 4, 6, and 7 bound the feasible solution region. Product mixes of X and Y that lie outside this boundary cannot be produced and/or sold because the demand constraint (line 3, 4), the labor constraint (line 4, 6), and the material constraint (line 6, 7) are binding.
NEW QUESTION 26
The process of making sure that the model measures what it is supposed to measure is called:
- A. Hypothesis testing.
- B. Statistical inference.
- C. Validation.
- D. Confidence coefficient analysis.
Answer: C
Explanation:
Validation is a step in the simulation procedure. Some assurance is needed that the results of the experiment will be realistic. This assurance requires validation of the model -- often using historical data. If the model gives results equivalent to what actually happened, the model is historically valid. There is still some risk, however, that changes could make the model invalid for the future.
NEW QUESTION 27
Which of the following is not a major component of an audit of e-commerce activities?
- A. Assess the internal control structure.
- B. Review the interface issues.
- C. Make certain that goals and objectives can be achieved.
- D. Evaluate the business continuity and disaster recovery plans.
Answer: C
Explanation:
Auditing e-commerce activities should provide reasonable assurance - not ensure or make certain -that goals and objectives can be achieved. An auditor cannot be absolutely certain that goals and objectives will be achieved. The following are other major components of an audit of e-commerce activities:
Assess the internal control structure, including the tone set by senior management, Determine whether the risks are acceptable.
Understand the information flow.
Review the interface issues such as hardware to hardware, software to software, and hardware to software), and
Evaluate the business continuity and disaster recovery plans.
NEW QUESTION 28
Which of the following statements about mentoring is true?
1. Mentoring can be used effectively for increasing employee retention
2. Mentoring can be used effectively in reducing employees frustration.
3. Mentoring can be used effectively for increasing organization communication.
4. Mentoring can be used effectively as a short term activity consisting of instruction and training
- A. 1 2. and 3 only.
- B. 1,2. 3, and 4
- C. 1. 2 and 4 only
- D. 1, 3. and 4 only.
Answer: A
NEW QUESTION 29
......
Verified Pass IIA-CIA-Part3 Exam in First Attempt Guaranteed: https://www.troytecdumps.com/IIA-CIA-Part3-troytec-exam-dumps.html
Free IIA-CIA-Part3 Sample Questions and 100% Cover Real Exam Questions : https://drive.google.com/open?id=1VhiUZid1QjDHGhCHNkz2DRj-oHVMeOWn