Practice with IIA-CIA-Part3 Dumps for Certified Internal Certified Exam Questions & Answer [Q22-Q36]

Q22. Technological uncertainty, subsidy, and spin-offs are usually characteristics of:

Fragmented industries.

Declining industries.

Mature industries.

Emerging industries.

Q23. A company’s budget for next year contains the following information:

How many equivalent units should the company plan to produce next year?

1,800

1,565

1.815

1.845

Q24. User acceptance testing is more important in an object-oriented development process than in a traditional environment because of the implications of the:

Absence of traditional design documents.

Lack of a tracking system for changes.

Potential for continuous monitoring.

Inheritance of properties in hierarchies.

Q25. The cost of materials has risen steadily over the year. Which of the following methods of estimating the ending balance of the materials inventory account will result in the highest profit assuming all other variables remain constant?

Last-in, first-out LIFO

First-in, first-out FIFO C Weighted average D Specific identification

Q26. The following data apply to one item sold by a large retailer:

Purchase price US $ 4.95 Using the contribution approach to pricing, which of the following prices is the lowest that can be charged in the short run?

US $5.00

US $7.00

US $8.00

US $9.50

Q27. In which of the following plans is an employee most likely to find guidance on action and performance standards?

Operational plans.

Tactical plans.

Strategic plans.

Mission plans.

Q28. At one organization, the specific terms of a contract require both the promisor end promise to sign the contract in the presence of an independent witness.
What is the primary role to the witness to these signatures?

A witness verifies the quantities of the copies signed.

A witness verifies that the contract was signed with the free consent of the promisor and promise.

A witness ensures the completeness of the contract between the promisor and promise.

A witness validates that the signatures on the contract were signed by tire promisor and promise.

Q29. During an audit of the organization’s annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years. Which of the following is the most likely explanation for this increase?

Cost of raw material inventory items is decreasing.

Process to manufacture goods is more efficient.

Labor productivity to produce goods is increasing.

Write-off of inventory is increasing.

Q30. Which of the following inventory items would be the most frequently reviewed in an ABC inventory control system?

Expensive, frequently used, high stock-out cost items with short lead times.

Expensive, frequently used, low stock-out cost items with long lead times.

Inexpensive, frequently used, high stock-out cost items with long lead times.

Expensive, frequently used, high stock-out cost items with long lead times.

Q31. There are many different budget techniques or processes that business organizations can employ. One of these techniques or processes is zero-based budgeting, which is

Budgeting from the ground up as though the budget process were being initiated for the first time.

Budgeting for cash inflows and outflows to time investments and borrowings in a way to maintain a bank account with a minimum balance

Using the prior year’s budget as a base year and adjusting it based on the experiences of the prior year and the expectations for the coming year

Developing budgeted costs from clear-cut measured relationships between inputs and outputs

Q32. Which of the following authentication device credentials is the most difficult to revoke when an employee s access rights need to be removed?

A traditional key lock

A biometric device

A card-key system

A proximity device

Q33. Sales representatives for a manufacturing company are reimbursed for 100 percent of their cellular telephone bills. Cellular telephone costs vary significantly from representative to representative and from month to month, complicating the budgeting and forecasting processes. Management has requested that the internal auditors develop a method for controlling these costs. Which of the following would most appropriately be included in the scope of the consulting project?

Control self-assessment involving sales representatives.

Benchmarking with other cellular telephone users.

Business process review of procurement and payables routines.

Performance measurement and design of the budgeting and forecasting processes.

Q34. In a process-costing system, the cost of abnormal spoilage should be:

Prorated between units transferred out and ending inventory

Included in the cost of units transferred out.

Treated as a loss in the period incurred.

Ignored.

Q35. A company using EDI tracked the functional acknowledgments from trading partners and issue warning messages if acknowledgments did not occur within a reasonable length of
time. What risk was the company attempting to address by this practice?

Transactions that have not originated from a legitimate trading partner may be inserted into the EDI network.

Transmission of EDI transactions to trading partners may sometimes fail.

There may be disagreement between the parties as to whether the EDI transactions form a legal contract.

EDI data may not be accurately and completely processed by the EDI software.

Q36. Which of the following is the most appropriate way to record each partner’s initial investment in a partnership?

At the value agreed upon by the partners.

At book value.

At fair value.

At the original cost.

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Practice with IIA-CIA-Part3 Dumps for Certified Internal Certified Exam Questions & Answer [Q22-Q36]

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