IIA IIA-CIA-Part3 Dumps PDF And Practice Test Software

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To be eligible for the IIA-CIA-Part3 certification exam, candidates must have completed the IIA-CIA-Part1 (Essentials of Internal Auditing) and IIA-CIA-Part2 (Practice of Internal Auditing) exams. Additionally, candidates must have a minimum of 24 months of internal auditing experience or equivalent. The IIA also offers exemptions for those who have completed certain academic programs or hold certain professional certifications.

IIA-CIA-Part3 exam is designed for individuals with a strong understanding of internal auditing practices and principles. IIA-CIA-Part3 exam is suitable for internal auditors, risk management professionals, and business professionals who wish to demonstrate their knowledge of internal auditing. Successful completion of the IIA-CIA-Part3 exam is an essential step towards obtaining the CIA certification and advancing a career in internal auditing.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q256-Q261):

NEW QUESTION # 256
One company executive has expressed concern about the operating loss that has occurred in Product Line 2 and has suggested that Product Line 2 be discontinued. If Product Line 2 is dropped, the manager of the line would be retained and assigned other duties with the company, but the other employees would not be retained. Management has indicated that the nature of the company's advertising might change with the elimination of Product Line 2, but the total dollar amount would not change. If Product Line 2 were to be dropped, the operating income of the company would:

A. Increase by US $50,000
B. Increase by US $416,000
C. Decrease by US $94,00
D. Decrease by US $234,0

Answer: D

Explanation:
The operating income will decrease. Product Line 2 income will be lost, but only the traceable costs of commissions, cost of sales, and salaries will be avoided. Accordingly, the decrease will be US $234,000 [$-700.000 + $14,000 + $420,000 + $32,000)]. The other shared costs will have to be absorbed by the two remaining product lines. The segmented income statement for a retail company with three product lines is presented below:

The company buys the goods in the three product lines directly from manufacturers' representatives. Each product line is directed by a manager whose salary is included in the administrative expenses. Administrative expenses are allocated to the three product lines equally because the administration is spread evenly among the three product lines.
Salaries represent payments to the workers in each product line and therefore are traceable costs of each product line. Advertising promotes the entire company rather than the individual product lines. As a result, the advertising is allocated to the three product lines in proportion to the sales revenue. Commissions are paid to the salespersons in each product line based on 2% of gross sales. Rent represents the cost of the retail store and warehouse under a lease agreement with 5 years remaining. The product lines share the retail and warehouse space, and the rent is allocated to the three product lines based on the square footage occupied by each of the product lines.

NEW QUESTION # 257
The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc., are presented below. The numbers in the diagram are the expected times (in days) to perform each activity in the project.

The expected time of the critical path is:

A. 11.5 days
B. 11.0 days
C. 13.0 days
D. 12.0 days

Answer: C

Explanation:
The critical path is the longest path. The longest path in the diagram is A-D-E, which requires 13 days (5.5 + 7.5) based on expected times.

NEW QUESTION # 258
What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for the coming year?

A. 0
B. 1
C. 2
D. 3

Answer: A

Explanation:
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup casts. Thus, plugging the data into the EOQ formula results in the following: C:Documents and Settingsusernwz1Desktop1.PNG

Thus, if each lot consists of 1,000 units, five production runs per year are needed to meet the 5,000-unit demand. At this level, setup costs will total US $5,000 5 x $1,000). Carrying costs will also equal US $5,000 10 per unit carrying cost average inventory of 500 units).
Accordingly, total costs are minimized at US $10,000. Jed Ryerson Computer Furniture, Inc. RCF) manufactures a line of office computer chairs. The annual demand for the chairs is estimated to be 5,000 units. The annual cost tic. hold one unit in inventory is US $10 per year, and the cost to initiate a production run is US $1,000. There are no computer chairs on hand, and RCF has scheduled four equal production runs of computer chairs for the coming year, the first of which is to be run immediately. RCF has 250 business days per year, sales occur uniformly throughout the year, and production start-up is within one day. RCF is considering using the following formula for determining the economic order quantity EOQ):

If: A = cast to initiate a production run per purchase order D = annual unit demand K = cost of carrying one unit per year

NEW QUESTION # 259
Capacity overbuilding is most likely to occur when management is focused on which of the following?

A. Marketing.
B. Production.
C. Finance.
D. Diversification.

Answer: B

NEW QUESTION # 260
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

A. Standardized graphical user interface.
B. Electronic funds transfer.
C. Knowledge-based systems.
D. Biometrics.

Answer: B

NEW QUESTION # 261
......

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