100% PASS 2025 UPDATED IIA IIA-CIA-PART3 FREE PRACTICE

100% Pass 2025 Updated IIA IIA-CIA-Part3 Free Practice

100% Pass 2025 Updated IIA IIA-CIA-Part3 Free Practice

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IIA IIA-CIA-Part3 Free Practice Exam Pass Certify | IIA-CIA-Part3: Business Knowledge for Internal Auditing

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IIA Business Knowledge for Internal Auditing Sample Questions (Q152-Q157):

NEW QUESTION # 152
When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

  • A. Indirect period costs
  • B. Direct product costs
  • C. Direct period costs
  • D. Indirect costs

Answer: B

Explanation:
Reference: IIA Business Knowledge for Internal Auditing, Cost Accounting section.


NEW QUESTION # 153
Which of the following is true regarding an organization's relationship with external stakeholders?

  • A. Disclosure laws tend to be consistent from one jurisdiction to another.
  • B. There are several internationally recognized standards for dealing with financial donors.
  • C. Specific guidance must be followed when interacting with nongovernmental organizations.
  • D. Legal representation should be consulted before releasing internal audit information to other assurance providers.

Answer: D


NEW QUESTION # 154
The breakeven point in unit sales for Year 1 is:

  • A. 56.320 units.
  • B. 42.240 units.
  • C. 46.080 units.
  • D. 36,495 units.

Answer: C

Explanation:
The breakeven point in unit sales equals total rests divided by the unit contribution margin UCM). Total fixed costs are US $1,520,640 $600,000 + 7,00 u + $352,800), and the UCM is US $33 [$4,950,000 contribution margin sales minus variable costs) -100,000 units sold]. Hence, the breakeven point in unit sales is 46,080 units US $1,520,640 + $33). Data regarding Year 1 operations for an enterprise that had no beginning or ending inventories are as follows:

The enterprise estimates that next year direct materials costs will increase by 10% and direct labor costs will increase by U' To U. unit to US $5.40 per unit. In addition, fixed selling expenses will increase by US $29,520_ All other costs will b. incurred at the same rates or amounts as the current year.


NEW QUESTION # 155
Six months after a disgruntled systems programmer was fired and passwords disabled, the company's mainframe computer was brought to a halt when it suddenly erased all of its own files and software. The most likely way the programmer accomplished this was by:

  • A. Implanting a virus in the operating system and executing it via a back door.
  • B. Having an accomplice in the computer center.
  • C. Planting a computer virus through the use of telephone access.
  • D. Returning to the computer center after 6 months.

Answer: A

Explanation:
Viruses are a form of computer sabotage. They are programs hidden within other programs that have the capacity to duplicate themselves and infect other systems. Sharing of storage media or participation in computer networks creates exposure to viruses. Viruses may result in actions ranging from harmless pranks to erasure of files and programs. A back door is a shortcut created in an operating system that permits a programmer simple access to the system.


NEW QUESTION # 156
A manufacturer receives an advance payment for special-order goods that are to be manufactured and delivered within the next year. The advance payment should be reported in the manufacturer's current-year balance sheet as a(n):

  • A. Contra asset amount.
  • B. Current liability
  • C. Accrued revenue.
  • D. Noncurrent liability

Answer: B

Explanation:
Recognition of an element of financial statement, income which includes revenue and gains) requires that two criteria be met. It must be probable that any future economic benefit associated with the item will flow to or from the enterprise, and the cost or value of the item must be measurable with reliability. The usual procedures for income recognition, e.g., that income be earned, reflect these criteria. Thus, income is recognized when an increase in future economic benefits is associated with an increase in an asset or a decrease in a liability. However, the enterprise has not substantially completed what it must do to be entitled to the benefits represented by the advance payment, and the receipt of future economic benefits is not sufficiently certain to merit income recognition.
Accordingly, a liability should be recognized because the entity has a current obligation arising from a past event that will require an outflow of economic benefits, that is, to deliver goods or to refund the customer's money. The delivery of good is to take place within a year of the balance-sheet date, therefore, the obligations is expected to be settled in the normal course of the operating cycle or is due to be settled within 12 months.


NEW QUESTION # 157
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