IIA-CIA-PART3 RELIABLE EXAM TEST, IIA-CIA-PART3 TEST QUESTIONS FEE

IIA-CIA-Part3 Reliable Exam Test, IIA-CIA-Part3 Test Questions Fee

IIA-CIA-Part3 Reliable Exam Test, IIA-CIA-Part3 Test Questions Fee

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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Certification Exam is an essential qualification for internal auditors seeking to expand their knowledge and skills in understanding business operations and risks. Offered by the Institute of Internal Auditors (IIA), this certification exam tests candidates on their understanding of essential business concepts, including strategic planning, financial management, marketing, and human resources.

IIA-CIA-Part3 exam is a challenging and rigorous certification exam that is designed to test the knowledge and skills of individuals who are interested in pursuing a career in internal auditing. Successful completion of IIA-CIA-Part3 Exam is a critical step in achieving the CIA designation, and is highly valued by employers around the world. With the right preparation and study, candidates can confidently approach IIA-CIA-Part3 exam and realize their professional goals.

IIA Business Knowledge for Internal Auditing Sample Questions (Q53-Q58):

NEW QUESTION # 53
Regardless of whether a company develops, buys, leases, or pays for the use of the software for EDI transmissions, internal audit should be responsible for evaluating whether the software:

  • A. Was developed in a controlled environment.
  • B. Was acquired with adequate review by legal counsel.
  • C. Is backed up adequately to permit recovery.
  • D. Meets business objectives.

Answer: D

Explanation:
An EDI application should meet business objectives and satisfy user and control requirements. The internal auditors should consider the organization's important EDI applications because they represent significant risk exposures and control problems. This role is within the scope of work of the internal auditors, who are charged with examining and evaluating internal control and the quality of performance in carrying out assigned responsibilities.


NEW QUESTION # 54
An organization produces products X and Y. The materials used for the production of both products are limited to 500 Kilograms

(kg ) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows in order to maximize profit, how much of product Y should the organization produce each month?
$10 $13
2 kg
70 units
6 kg
120 units

  • A. 60 units
  • B. 1:20 units
  • C. 70 units
  • D. 50 units

Answer: A


NEW QUESTION # 55
The following ratios relate to an entity's financial situation compared with that of its:

What conclusion could a financial analyst validly draw from these ratios?

  • A. The entity's product has a high market share, leading to higher profitability.
  • B. The entity's profits are increasing over time.
  • C. The entity uses more debt than does the average entity in the industry.
  • D. The entity's shares have a higher market value to carrying amount than does the rest of the industry.

Answer: C

Explanation:
The use of financial leverage has a multiplier effect on the return on assets. The extended Du Pont formula illustrates this point by showing that the return on equity equals the return on assets times the grace factor, also called the equity multiplier total assets -ordinary equity). Thus, greater use of debt increases the equity multiplier and the return on equity. In this example, the equity multiplier is 1:12 15.2% ROE / 7.9% ROA), and the industry average is 1.40 12.9% ROE / 9.2% ROA). The higher quality multiplier Indicates that the entity uses more debt than the industry average.


NEW QUESTION # 56
What kind of strategy would be most effective for an organization to adopt in order to implement a unique advertising campaign for selling identical products across all of its markets?

  • A. Globalization strategy.
  • B. Export strategy.
  • C. Transnational strategy.
  • D. Multi-domestic strategy.

Answer: A

Explanation:
Comprehensive and Detailed In-Depth Explanation:
A globalization strategy focuses on standardizing products and marketing campaigns across all international markets. This ensures consistent branding and messaging, achieving economies of scale while maintaining a uniform customer experience.
Option A (Export strategy) primarily refers to selling domestic products abroad without a significant focus on global marketing.
Option B (Transnational strategy) balances global standardization and local adaptation, but does not emphasize a single advertising approach.
Option C (Multi-domestic strategy) tailors marketing and product offerings to each local market, making it less suitable for a uniform advertising campaign.
Thus, the globalization strategy (Option D) is the best approach for a unique yet standardized advertising campaign across markets.
Reference: IIA Business Acumen - Global Business Strategies


NEW QUESTION # 57
A short-term bank loan will have a higher effective financing cost if it has which combination of characteristics?

  • A. A 10% compensating balance and discount interest.
  • B. A 20% compensating balance and discount interest
  • C. A 10% compensating balance and regular interest.
  • D. A 20% compensating balance and regular interest

Answer: B

Explanation:
The most costly combination of characteristics is a higher compensating balance and discount interest. The higher the compensating balance, the higher the portion of the loan funds that must be left on deposit with the lender. Hence, the interest paid is charged on a smaller amount of funds available to be used by the borrower, and the effective cost is higher. Also, discount interest is deducted from the loan funds in advance, resulting in a further increase in the effective financing cost.


NEW QUESTION # 58
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