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IIA-CIA-Part3 exam, also known as Business Knowledge for Internal Auditing, is one of the three exams required to obtain the Certified Internal Auditor (CIA) certification. IIA-CIA-Part3 exam is designed to test candidates' understanding of business principles and concepts that are crucial for internal audit professionals. The IIA-CIA-Part3 exam covers six domains including Business Acumen, Information Security, Information Technology, Financial Management, Global Business Environment, and Governance and Business Ethics.
IIA-CIA-Part3 certification exam is designed to test the skills and knowledge of internal auditors in the area of business knowledge. IIA-CIA-Part3 Exam is offered by the Institute of Internal Auditors (IIA), a global organization that sets standards for the internal audit profession. The IIA-CIA-Part3 exam is one of three exams that make up the Certified Internal Auditor (CIA) designation.
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IIA Business Knowledge for Internal Auditing Sample Questions (Q197-Q202):
NEW QUESTION # 197
Which of the following securities is likely to o e the least risk?
- A. First mortgage bonds
- B. Income bonds
- C. Subordinated determined
- D. Debentures
Answer: A
Explanation:
First-mortgage bonds are backed by fixed assets.
NEW QUESTION # 198
According to IIA guidance on IT auditing, which of the following would not be an area examined by the internal audit activity?
- A. Access system security.
- B. Policy development.
- C. Change management.
- D. Operations processes.
Answer: B
NEW QUESTION # 199
Listening effectiveness is best increased by:
- A. Tuning out messages that do not seem to fit the meeting purpose.
- B. Factoring in biases in order to evaluate the information being given.
- C. Waiting to review key concepts until the speaker has finished talking.
- D. Resisting both internal and external distractions.
Answer: D
NEW QUESTION # 200
Company J produces two components: A-1 and A-2. The unit throughput contribution margins for A-1 and A-2 are US $150 and US $300, respectively. Each component must proceed through two processes: Operation 1 and Operation 2. The capacity of Operation 1 is 180 machine hours, with A-1 and A-2 requiring 1 hour and 3 hours, respectively.
Furthermore, Company J can sell only 45 units of A-1 and 100 units of A-2. However,
Company J is considering expanding Operation 1's capacity by 90 machine hours at a cost of US $80 per hour. Assuming that Operation 2 has sufficient capacity to handle any additional output from Operation 1, how much should Company J produce?
- A. Option A
- B. Option C
- C. Option D
- D. Option C
Answer: D
Explanation:
A-1's throughput contribution margin per unit of the scarce resource the internal binding constraint) is US $150 $150 UCM - 1 machining hour). A-2's throughput contribution margin per unit of the scarce resource is U $100 $300 UCM - 3 machine hours).
Consequently, Company J should produce as much A-1 as it can sell 45 units). If Company adds 90 machine hours to increase the capacity of Operation -I to 270 hours 180 + 90), it cannot produce additional units of A-1 because the external binding constraint has not been relaxed. However, it can produce additional units of A-2. Given that the UCM per machine hour of A-2 is U $100 and that the cost is US $80 per hour, adding capacity to Operation 1 is profitable. Thus, Company J should use 45 machine hours to produce 45 units of A-1. The remaining 225 machine hours 270 - 45) should be used to produce 75 units 225 - 3 hours) of A-2. The latter amount is within the external binding constraint. A company produces two products, and Y, which use material and labor as inputs. Fixed amounts of labor and material are available for production each month In addition. the demand for product Y each month is limited: product has no constraint an the number of units that can be sold. A graphical depiction of these production and demand constraints is presented in the opposite column.
NEW QUESTION # 201
Which of following best demonstrates the application of the cost principle?
- A. 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
- B. A company reports assets at either historical or fair value, depending which is closer to market value.
- C. A company reports trading and investment securities at their market cost
- D. A building purchased last year for $1 million is currently worth 1.2 million, but the company still reports the building at $1 million.
Answer: D
NEW QUESTION # 202
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