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Prerequisites of IIA CIA Part 3 Exam
IIA CIA Part 3 Prerequisites - Bachelor's degree from an accredited college or university or a non-U.S. equivalent, at least five years of professional experience in internal auditing, and have attained the age of 21. Or have a combination of education and/or professional experience that provides for the same level of knowledge.
IIA CIA Experience Requirements - At least two years of professional experience in internal auditing, governance, risk management, control, or related experience in one or more areas examined by the CIA exam.
What is the exam cost of the IIA CIA Part 3 Exam
The IIA CIA Part 2 Exam fee of the member is the USD 230, the nonmember fee is the USD 345 and Student/Professor fee is the USD 180.
NEW QUESTION 153
A situation in which companies conspire to restrict output and set artificially high prices is known as:
- A. Collusive pricing.
- B. Predatory pricing.
- C. Price discrimination.
- D. Market-based pricing.
Answer: A
Explanation:
Collusive pricing is illegal. It involves two or more competitors conspiring to restrict output and charge artificially high prices.
NEW QUESTION 154
An organization that relies heavily on IT wants to contain the impact of potential business disruption to a period of approximately four to seven days. Which of the following business recovery strategies would most efficiently meet this organization's needs?
- A. A recovery strategy whereby a separate site has been secured and is ready for use, with fully configured hardware and real-time synchronized data
- B. A recovery strategy whereby a separate site has been secured and the necessary funds for hardware and data backups have been reserved.
- C. A recovery strategy whereby a separate site has been secured with configurable hardware and data backups.
- D. A recovery strategy whereby a separate site has not yet been determined, but hardware has been reserved for purchase and data backups.
Answer: C
NEW QUESTION 155
In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?
- A. No part of TOC analysis corresponds to the drum-buffer-rope model.
- B. Rope.
- C. Buffer.
- D. Drum.
Answer: C
Explanation:
Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e., the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.
NEW QUESTION 156
A characteristic of the payback method before taxes) is that it:
- A. Uses the estimated expected life of the asset in the denominator of the calculation.
- B. Uses accrual accounting inflows in the numerator of the calculation.
- C. Incorporates the time value of money.
- D. Neglects total project profitability.
Answer: D
Explanation:
The, payback method calculates the number of years required to complete the return of the original investment. This measure is computed by dividing the net investment required by the average expected cash flow to he generated, resulting in the number of years required to recover the original investment. Payback is easy to calculate but has two principal problems: it ignores the time value of money, and it gives no consider t, -,n to returns after the payback period. Thus, it ignores total project profitability.
NEW QUESTION 157
The first step in determining product price is:
- A. Determining the cost of the product.
- B. Evaluating prices set by the competitors.
- C. Developing pricing objectives.
- D. Selecting a pricing method.
Answer: C
NEW QUESTION 158
In PERT, slack is the:
- A. Difference between the latest starting time and earliest finishing time.
- B. Path that has the largest amount of time associated with it.
- C. Number of days an activity can be delayed without forcing a delay for the entire project.
- D. Uncertainty associated with time estimates.
Answer: C
Explanation:
Slack is the amount of time that commencement of an activity can be delayed without forcing a delay of the entire project.
NEW QUESTION 159
Futures and option contracts are examples of what type of financial instruments?
- A. Underlying.
- B. Non derivatives.
- C. Equity instruments.
- D. Derivatives.
Answer: D
Explanation:
A derivative is a financial instrument whose value changes with the change in the underlying. It requires little or no investment and is settled in the future. Examples are futures. forward, swap, or option contracts. The underlying is a specified interest rate, security price. foreign currency exchange rate. price index, commodity price, etc.
NEW QUESTION 160
If the exchange rate has changed from 1 local currency unit LCU) to 5 foreign currency units FCUs) to a rate of 1 LCU to 5.5 FCUs,
- A. The FCU has appreciated by 20%.
- B. The FCU has depreciated by 20%.
- C. The LCU has depreciated by 10%.
- D. The LCU has appreciated by 10%.
Answer: D
Explanation:
If the exchange rate changes from 1 LCU to 5 FCUs to 1 LCU to 5.5 FCUs, the LCU has appreciated by 10% [(5.5 - 5) 5].
NEW QUESTION 161
All of the following are generally included in a cost-of-quality report except:
- A. Supplier evaluations.
- B. Lost contribution margin.
- C. Warranty claims.
- D. Design engineering.
Answer: B
Explanation:
A cost-of-quality report includes most costs related to quality, including the costs of external failure, internal failure, prevention, and appraisal. Lost contribution margins from poor product quality are external failure costs that normally do not appear on a cost-of-quality report because they are opportunity costs. Opportunity costs are not usually recorded by the accounting system, thereby understating the costs of poor quality. Lost contribution margins from reduced sales, market share, and sales prices are external failure costs that are also not usually included in a cost-of-quality report.
NEW QUESTION 162
Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?
- A. The "Funds Needed" line will remain pointed upward, but will become more steep.
- B. The "Funds Needed" line will point downward with an extreme slope.
- C. The "Funds Needed" line will point downward with a minimal slope.
- D. The "Funds Needed" line will remain pointed upward, but will become less steep.
Answer: A
NEW QUESTION 163
Which of the following is an encryption feature that can be used to authenticate the originator of a document and ensure that the message is intact and has not been tampered with?
- A. Heuristic terminal.
- B. Default settings.
- C. Digital signatures.
- D. Perimeter switch.
Answer: C
Explanation:
Businesses and others require that documents sent over the Internet be authentic. To authenticate a document, a company or other user may transmit a complete plaintext document along with an encrypted portion of the same document or another standard text that serves as a digital signature_ If the plaintext document is tampered with, the two will not match.
NEW QUESTION 164
Image processing systems have the potential to reduce the volume of paper circulated throughout an organization. To reduce the likelihood of users relying on the wrong images, management should ensure that appropriate controls exist to maintain the:
- A. Legibility of image data.
- B. Accessibility of image data.
- C. Integrity of index data.
- D. Initial sequence of index data.
Answer: C
Explanation:
Data integrity is a protectibility objective. If index data for image processing systems are corrupted, users will likely be relying on the wrong images.
NEW QUESTION 165
An internal auditor observed that the organization's disaster recovery solution will make use of a cold site in a town several miles away. Which of the following is likely to be a characteristic of this disaster recover/ solution?
- A. Recovery resources end data restore processes have not been defined.
- B. Data is synchronized in real time
- C. Servers are not available and need to be procured
- D. Recovery time is expected to be less than one week
Answer: C
NEW QUESTION 166
The budgeted cost of work performed is a metric best used to measure which project management activity?
- A. Cost control.
- B. Cost budgeting.
- C. Cost estimating
- D. Resource planning.
Answer: A
NEW QUESTION 167
An internal auditor is assessing the risks related to an organization's mobile device pokey She notes that the organization allows third parties (vendors and visitors) to use outside smart devices to access its proprietary networks and systems Which of the following types of smart device risks should the internal auditor be most concerned about'
- A. Physical security.
- B. Privacy
- C. Strategic
- D. Compliance
Answer: D
NEW QUESTION 168
A company manufactures a single product. Estimated cost data regarding this product and other information for the product and the company are as follows:
The number of units the company must sell in the coming year in order to reach its breakeven point is:
- A. 388,800 units
- B. 972,000 units
- C. 583,200 units
- D. 518,400 units
Answer: C
Explanation:
The breakeven point is determined by dividing total fixed costs by the unit contribution margin. The total fixed costs are US $9,331,200 $5,598,720 manufacturing overhead +$3,732,480 general and administrative). The contribution margin is US $16.00 $40 sales
price - $22 variable production cost-$2 commission). Thus, the breakeven point is 583,200
units US $9.331,200 - $16).
NEW QUESTION 169
Management's enthusiasm for computer security seems to vary with changes in the environment, particularly the occurrence of other computer disasters. Which of the following concepts should be addressed when making a comprehensive recommendation regarding the costs and benefits of computer security?
I. Potential loss if security is not implemented
II. Probability of occurrences
III.
Cost and effectiveness of the implementation and operation of computer security
- A. I and II only.
- B. I, II, and III.
- C. III only.
- D. I only.
Answer: B
Explanation:
Potential loss is the amount of dollar damages associated with a security problem or loss of assets. Potential loss times the probability of occurrence is an estimate expected value) of the exposure associated with lack of security. It represents a potential benefit associated with the implementation of security measures. To perform a cost-benefit analysis, the costs should be considered. Thus, all three items need to be addressed.
NEW QUESTION 170
An organization uses a database management system (DBMS) as a repository for data. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?
- A. End-user applications are developed on personal computers before being implemented on the mainframe.
- B. End users have their read-only applications approved by the information systems department before accessing the database.
- C. Concurrency update controls are in place.
- D. A hierarchical database model is adopted so that multiple users can be served at the same time.
Answer: C
NEW QUESTION 171
Bandit Co. will report a value of, List A, for the parking and storage facility if it prepares financial reports consistent with the, List B, principle.
- A. Option D
- B. Option C
- C. Option A
- D. Option B
Answer: D
Explanation:
An asset classified under property, plant, and equipment is measured initially at cost. This mount includes the purchase price and any directly attributable costs of bringing the asset to working condition for its intended use. Directly attributable costs include costs of, for example, site preparation, initial delivery and handling, installation, professional feese.g., those of architects and engineers), and dismantling and removing the asset and restoring the site. The purchase price is determined by adding any import fees and nonrefundable purchase taxes and subtracting any trade discounts and rebates.
NEW QUESTION 172
According to MA guidance on IT. which of the following would be considered a primary control for a spreadsheet to help ensure accurate financial reporting?
- A. The purpose and use of the spreadsheet are documented.
- B. The spreadsheet is stored on a network server that is backed up daily.
- C. Check-in and check-out software is used to control versions.
- D. Formulas and static data are locked or protected.
Answer: D
NEW QUESTION 173
In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?
- A. A tougher collections policy that reduces the bad debt loss ratio.
- B. A longer average collection period.
- C. A higher cost per unit sold.
- D. An increase in the cost of capital.
Answer: A
NEW QUESTION 174
Contingency plans for information systems should include appropriate backup agreements. Which of the following arrangements would be considered too vendor dependent when vital operations require almost immediate availability of computer resources?
- A. A "hot site" arrangement.
- B. Using excess capacity at another data center within the organization.
- C. A "cold site" arrangement.
- D. A "cold and hot site" combination arrangement.
Answer: C
Explanation:
Organizations should maintain contingency plans for operations in the case of a disaster. These plans usually include off-site storage of important backup data and an arrangement for the continuation of operations at another location. A "cold site" has all needed assets in place except the needed computer equipment and is vendor-dependent for timely delivery of equipment.
NEW QUESTION 175
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What is the salary of the IIA CIA Part 3 Exam
The Average salary of different countries of IIA CIA Part 3 professionals:
INDIA: INR 6,12,072
US: USD 75,903
UK: Pound 50,000
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