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IIA-CIA-Part3 Exam Dumps - IIA CIA Questions and Answers

Question # 44

Which of the following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?

Options:

A.

First-in. first-out method (FIFO).

B.

Last-in, first-out method (LIFO).

C.

Specific identification method.

D.

Average-cost method

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Question # 45

The head of the research and development department at a manufacturing organization believes that his team lacks expertise in some areas and decides to hire more experienced researchers to assist in the development of a new product. Which of the following variances are likely to occur as the result of this decision?

Favorable labor efficiency variance

Adverse labor rate variance

Adverse labor efficiency variance

Favorable labor rate variance

Options:

A.

1 and 2.

B.

1 and 4.

C.

3 and 4.

D.

2 and 3.

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Question # 46

Which of the following should software auditors do when reporting internal audit findings related to enterprisewide resource planning?

Options:

A.

Draft separate audit reports for business and IT management.

B.

Conned IT audit findings to business issues.

C.

Include technical details to support IT issues.

D.

Include an opinion on financial reporting accuracy and completeness.

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Question # 47

Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

Options:

A.

The organization sells inventory to an overseas subsidiary at fair value.

B.

The local subsidiary purchases inventory at a discounted price.

C.

The organization sells inventory to an overseas subsidiary at the original cost.

D.

The local subsidiary purchases inventory at the depreciated cost.A

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Question # 48

An organization decided to outsource its human resources function. As part of its process migration, the organization is implementing controls over sensitive employee data.

What would be the most appropriate directive control in this area?

Options:

A.

Require a Service Organization Controls (SOC) report from the service provider

B.

Include a data protection clause in the contract with the service provider.

C.

Obtain a nondisclosure agreement from each employee at the service provider who will handle sensitive data.

D.

Encrypt the employees ' data before transmitting it to the service provider

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Question # 49

An internal auditor identified a database administrator with an incompatible dual role. Which of the following duties should not be performed by the identified administrator?

Options:

A.

Designing and maintaining the database.

B.

Preparing input data and maintaining the database.

C.

Maintaining the database and providing its security,

D.

Designing the database and providing its security

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Question # 50

An internal auditor found the following information while reviewing the monthly financial statements for a wholesaler of safety glasses: Opening inventory: 1,000 units at $2 per unit; Purchased: 5,000 units at $3 per unit; Sold: 3,000 units at $7 per unit. The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?

Options:

A.

Average cost method

B.

First-in, first-out (FIFO) method

C.

Specific identification method

D.

Activity-based costing method

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Question # 51

Which of the following best describes a transformational leader, as opposed to a transactional leader?

Options:

A.

The leader searches for deviations from the rules and standards and intervenes when deviations exist.

B.

The leader intervenes only when performance standards are not met.

C.

The leader intervenes to communicate high expectations.

D.

The leader does not intervene to promote problem-solving

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Question # 52

When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

Options:

A.

Direct product costs

B.

Indirect costs

C.

Direct period costs

D.

Indirect period costs

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Question # 53

A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services. Which of the following best describes the restaurants strategy?

Options:

A.

Diversification

B.

Vertical integration

C.

Risk avoidance

D.

Differentiation

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Exam Code: IIA-CIA-Part3
Exam Name: Business Knowledge for Internal Auditing
Last Update: Apr 4, 2025
Questions: 416
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