Get Started IIA-CIA-Part3 Exam [2023] Dumps IIA PDF Questions [Q27-Q43]

QUESTION 27
A newly acquired plant asset is to be depreciated over its useful life. The rationale for this process is the:

QUESTION 28
Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

QUESTION 29
Which of the following backup methodologies would be most efficient in backing up a database in the production environment?

QUESTION 30
Truth-in-lending laws most likely are intended to:

QUESTION 31
The process of adding resources to shorten selected activity times on the critical path in project scheduling is called:

QUESTION 32
Which of the following statements are true regarding the use of heat maps as risk
assessment tools?
1.They focus primarily on known risks, limiting the ability to identify new risks.
2.They rely heavily on objective assessments and related risk tolerances.
3.They are too complex to provide an easily understandable view of key risks.
4.They are helpful but limited in value in a rapidly changing environment.

QUESTION 33
During the past few years, Wilder Company has experienced the following average number of power outages:

Each power outage results in out-of-pocket costs of US $800. For US $1,000 per month, Wilder can lease a generator to provide power during outages. If Wilder leases a generator in the coming year, the estimated savings (or additional expense) for the year will be

QUESTION 34
Which of the following statements pertaining to a market skimming pricing strategy is not true?

QUESTION 35
Which of the following is an accepted example of electronic data interchange?

QUESTION 36
When using cost-volume-profit analysts which of the following will increase operating income once !he break-even point has been reached?

QUESTION 37
Which of the following performance measures includes both profits and investment base?

QUESTION 38
The ABC Company manufactures components for use in producing one of its finished products. When 12,000 units are produced, the full cost per unit is US $35, separated as follows: The XYZ Company has offered to sell 12,000 components to ABC for US $37 each. If ABC accepts the offer, some of the facilities currently being used to manufacture the components can be rented as warehouse space for US $40,000. However, US $3 of the fixed overhead currently applied to each component would have to be covered by ABC’s other products. What is the differential cost to the ABC Company of purchasing the components from the XYZ Company?

QUESTION 39
Philip Enterprises, distributor of compact disks (CDs), is developing its budgeted cost of goods sold. Philip has developed the following range of sales estimates and associated probabilities for the year:

Philip’s cost of goods sold averages 80% of sales. What is the expected value of Philip’s budgeted cost of goods sold?

QUESTION 40
Division A of a company is currently operating at 50% capacity. It produces a single product and sells all its production to outside customers for US $13 per unit. Variable costs are US $7 per unit, and fixed costs are US $6 per unit at the current production level. Division B, which currently purchases this product from an outside supplier for US $12 per unit, would like to purchase the product from Division A. Division A will operate at 80% capacity to meet outside customers’ and Division B’s demand. What is the minimum price that Division A should charge Division B. for this product?

QUESTION 41
The primary reason for adopting TQM was to achieve:

QUESTION 42
A large hospital has an existing contract with a vendor in another country to provide software support and maintenance of the hospital’s patient records information system. From the hospital management’s perspective, which of the following controls would be most effective to address privacy risks related to this outsourcing arrangement^

QUESTION 43
In a critical path analysis, if slack time in an activity exists, the activity: