IIA-CIA-Part3 Free Exam Study Guide! (Updated 413 Questions) [Q127-Q141]

Rate this post

IIA-CIA-Part3 Free Exam Study Guide! (Updated 413 Questions)

IIA-CIA-Part3 Dumps for Certified Internal Certified Exam Questions and Answer

IIA IIA-CIA-Part3 Exam Syllabus Topics:

Topic	Details
Topic 1	Recognize core activities in the systems development lifecycle and delivery Recognize the purpose and applications of IT control frameworks
Topic 2	?Explain general concepts of managerial accounting ?Examine the risk and control implications of common business processes
Topic 3	Recognize data privacy laws and their potential impact on data security policies and practices Explain disaster recovery planning site concepts
Topic 4	Recognize emerging technology practices and their impact on security Appraise the risk and control implications of different organizational configuration structures
Topic 5	?Recognize advanced and emerging financial accounting concepts Organizational Structure and Business Processes
Topic 6	Recognize the various forms and elements of contracts ?Identify project management techniques
Topic 7	Differentiate types of common physical security controls Examine common performance measures
Topic 8	Describe cybersecurity and information security-related policies Describe the strategic planning process and key activities
Topic 9	Explain the data analytics process ?Differentiate the various forms of user authentication and authorization controls
Topic 10	Explain basic IT infrastructure and network concepts ?Recognize existing and emerging cybersecurity risks
Topic 11	Recognize the application of data analytics methods in internal auditing Explain the purpose and use of various information security controls

NEW QUESTION 127
Which mindset promotes the most comprehensive risk management strategy?

Increase shareholder value.

Maximize market share.

Improve operational efficiency.

Mitigate losses.

Explanation/Reference:

NEW QUESTION 128
Which of the following is a primary objective of the theory of constraints?

Full or near capacity in processes.

Smooth workflow among processes.

Few or no defects.

Lowered inventory levels.

NEW QUESTION 129
During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

$170,000

$280,000

$300,000

$540,000

NEW QUESTION 130
An enterprise decided to sell a separate major line of its business. The assets were sold for US $100,000 and had a net carrying amount US $70,000. The applicable tax rate was 20%. The result of this transaction may appear on the:

Balance sheet as a fundamental error.

Income statement as an extraordinary item.

Income statement as a single amount for a discontinued operation

Income statement as a change in accounting policy

A discontinued operation DO is a component of an entity that has been disposed of or meets the criteria for classification as held for sale. It is1) a separate major line of business or geographical operating area,2) part of a single plan to dispose of such a line or area. or3) a subsidiary acquired solely for resale. A component of an entity consists of operations and cash flows that are clearly distinguishable from the rest of the entity for financial reporting as well as operationally. A single amount is disclosed on the face of the income statement equal to the sum of1) after-tax profit loss on DOs and2 after-tax gain loss on a remeasurement of noncurrent assets or disposal groups) classified as held for sale at fair value minus cost to sell orb) disposal of the assets or disposal groups that constituted the DO.

NEW QUESTION 131
What would be the effect of a lower tax rate on the ending balance of ordinary shares and on dividends said for the year?

Option A

Option B

Option C

Option D

The balance in the ordinary shares account represents share capital i.e. capital contributed by owners, not earnings retained in the business. It is not affected by a change in tax ate. I ./id. ends will increase. not however, because they are a constant percentage of after-tax earnings. An entity reports the following account balances at year-end:

The opening balance of ordinary shares was US $100,000. The opening balance of ordinary earning was US $82,500. The entity had 10,000 ordinary shares outstanding all year. No dividends were paid during the year.

NEW QUESTION 132
Under a value-added taxing system:

Businesses must pay a tax only if they make a profit.

The consumer ultimately bears the cost of the tax through higher prices.

Consumer savings are discouraged.

The amount of value added is the difference between an organization’s sales and its cost of goods sold.

NEW QUESTION 133
A company updates its accounts receivable master file weekly and retains the master files and corresponding update transactions for the most recent 2-week period.
The purpose of this practice is to

Verify run-to-run control totals for receivables.

Match internal labels to avoid writing on the wrong volume.

Permit reconstruction of the master file if needed.

Validate groups of update transactions for each version.

The grandfather-father-son approach normally employs magnetic tapes to furnish backup in a batch processing system. The procedure involves creation and retention of three generations of master files so that lost or destroyed data may be regenerated from the remaining master files and transaction data. In this case, a master file the grandfather) and the first week’s transactions are used to generate a second master file (the father). This file and the second week’s transactions are the basis for the current master file the son). Online systems employ rollback and recovery procedures. i.e., the master file is periodically dumped onto a storage medium. Reconstruction is then possible using the backup copy and the transactions lord.

NEW QUESTION 134
The ending inventory balance under the first-in, first-out-FIFO) method of inventory valuation is:

US $3,050

US $3,150

US $3,230 D US $3.430

Under the FIFO method, the 1.700 units of ending inventory are valued at the most recent prices. Ending inventory is assumed to include 1.000 units purchased November 24. 500 units purchased May 5. and 700 units purchased January 12. Hence, the ending inventory is US $3.150 [(1 .000 x $1 65) +500 $2.21′) +700 x $2.00)].

Additional Information
The entity had no opening inventory.
The Items sold on March 15 were purchased on January 12.
The items sold on July 3 war purchased on May 5

NEW QUESTION 135
When assessing application controls, which one of the following input controls or edit checks is most likely to be used to detect a data input error in the customer account number field?

Limit check.

Validity check.

Control total.

Hash total.

Validity checks are tests of identification numbers or transaction codes for validity by comparison with items already known to be correct or authorized. For example, Social Security numbers on payroll input records can be compared with Social Security numbers authorized by the personnel department.

NEW QUESTION 136
Entity X owns 90% of entity Y. Early in the year, X lent Y U$110,000. No payments have been made on the debt by year-end. Proper accounting at year-end in the consolidated financial statements would:

Eliminate 100% of the receivable, the payable, and the related interest.

Eliminate 100% of the receivable and the payable but not any related interest.

Eliminate 90% of the receivable, the payable, and the related interest.

Eliminate 90% of the receivable and the payable but not any related interest.

In a consolidated balance sheet, reciprocal balances, such as receivables and payables, between a parent and a consolidated subsidiary should be eliminated in their entirety regardless of the portion of the subsidiary’s shares held by the parent. Thus, all effects of the US $1 .000.000 loan should be eliminated in the preparation of the year-end consolidated balance sheet.

NEW QUESTION 137
Prices vary directly with capacity usage under:

Collusive pricing.

Peak-load pricing.

Market-based pricing.

Cost-based pricing.

Under peak-load pricing, prices vary directly with capacity usage. Thus, when idle capacity is available, that is, when demand falls, the price of a product or service tends to be higher given a peak-load pricing approach.
Topic 3, Volume C

NEW QUESTION 138
Suppose that an entity has paid one of its liabilities t ice during the year in error The effects of this mistake would be?

Assets Liabilities, and equity are understated.

Assets, net income, and equity are unaffected

Assets and liabilities are understated.

Assets and profit and equity} are understated, and liabilities are overstated.

When a liability is paid, an entry debiting accounts payable and crediting cash is made. If an entity erroneously pays a liability twice, the accounts payable and cash accounts will be understated by the amount of the liability. Hence, assets and liabilities will be understated.

NEW QUESTION 139
A manager has allowed a subordinate employee to have greater control and responsibility over the tasks that he performs. This is an example of which of the following?

Job enlargement.

Horizontal loading of the job.

Job rotation

NEW QUESTION 140
An entity in a 40% tax bracket needs <List A> of operating income to pay 1 of interest and <List B> of pretax income to pay 1 of dividends.

Option A

Option B

Option C

Option D

Interest is deductible from operating income to obtain taxable income but dividends are not. Thus, only 1.00 of pretax income is needed to pay 1.00 of interest, but 1.67 of pretax income [1.00 – 1.0 – 4)] is needed to pay 1.00 of dividends if the entity is in a 40% tax bracket.

NEW QUESTION 141
A retail organization mistakenly did not include $10,000 of inventory in the physical count at the end of the year.
What was the impact to the organization’s financial statements?

Cost of sales and net income are understated.

Cost of sales and net income are overstated.

Cost of sales is understated and net income is overstated.

Cost of sales is overstated and net income is understated.

Loading …