Top Tips Of Refresh IIA-CIA-Part3 Exam Answers

NEW QUESTION 1

An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent. If the organization has total debt of $1 000 000 what is the organization's sales level?

• A. $266.667
• B. $416,667
• C. $3.750.000
• D. $5 000.000

Answer: C

NEW QUESTION 2

Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

• A. Electronic funds transfer.
• B. Knowledge-based systems.
• C. Biometrics.
• D. Standardized graphical user interface.

Answer: A

NEW QUESTION 3

Which of the following types of data analytics would be used by a hospital to determine which patients are likely to require readmittance for additional treatment?

• A. Predictive analytics
• B. Prescriptive analytics
• C. Descriptive analytics
• D. Diagnostic analytics

Answer: A

NEW QUESTION 4

An internal auditor is reviewing the organization's performance appraisal process. Which of the following methods would be most effective to identify stereotyping?

• A. Use a behaviorally anchored rating scale to Break down jobs into their components.
• B. Analyze and compare the ratings for different classes or groupings of employees.
• C. Compare the ratings of selective employees with their previous appraisals.
• D. Analyze the number and percentages of employee appraisals that fall into each rating category

Answer: C

NEW QUESTION 5

Which of the following factors is considered a disadvantage of vertical integration?

• A. It may reduce the flexibility to change partners.
• B. It may not reduce the bargaining power of suppliers.
• C. It may limit the organization's ability to differentiate the product.
• D. It may lead to limited control of proprietary knowledge.

Answer: A

NEW QUESTION 6

An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

• A. The total liabilities and total stockholder equity both increased.
• B. The total liabilities and total stockholder equity both decreased.
• C. The total liabilities decreased, and the total stockholder equity increased.
• D. The total liabilities increased, and the total stockholder equity decreased.

Answer: D

NEW QUESTION 7

Which of the following describes the free trade zone in an e-commerce environment?

• A. Zone that separates an organization's servers from outside forces.
• B. Area in which messages are scrutinized to determine if they are authorized.
• C. Area where communication and transactions occur between trusted parties.
• D. Zone where data is encrypted, users are authenticated, and user traffic is filtered.

Answer: C

NEW QUESTION 8

Which of the following strategies is most appropriate for an industry that is in decline?

• A. Invest in marketing.
• B. Invest in research and development.
• C. Control costs.
• D. Shift toward mass production.

Answer: C

NEW QUESTION 9

Which of the following is not a potential area of concern when an internal auditor places reliance on spreadsheets developed by users?

• A. Increasing complexity over time.
• B. Interface with corporate systems.
• C. Ability to meet user needs.
• D. Hidden data columns or worksheets.

Answer: C

NEW QUESTION 10

Which of the following statements regarding program change management is not correct?

• A. The goal of the change management process is to sustain and improve organizational operations.
• B. The degree of risk associated with a proposed change determines if the change request requires authorization.
• C. In order to protect the production environment, changes must be managed in a repeatable, defined, and predictable manner.
• D. All changes should be tested in a non-production environment before migrating to the production environment.

Answer: B

NEW QUESTION 11

A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?

• A. Develop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.
• B. Adopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.
• C. Involve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.
• D. Develop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.

Answer: D

NEW QUESTION 12

Which of the following financial instruments should be recorded at fair market value on the financial statements?

• A. Accounts receivable in the short term
• B. Bonds to be held to maturity.
• C. Notes receivable in the short term
• D. Bonds to be held for sale in the short term.

Answer: D

NEW QUESTION 13

Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?

• A. We are a people-and-goods mover.
• B. We supply energy.
• C. We make movies.
• D. We provide climate control in the home.

Answer: C

NEW QUESTION 14

Which stage of group development is characterized by a decrease in conflict and hostility among group members and an increase in cohesiveness?

• A. Forming stage.
• B. Norming stage.
• C. Performing stage.
• D. Storming stage.

Answer: B

NEW QUESTION 15

Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?

• A. A contract is a tool used by both suppliers and customers, the model and complexity of which generally remains constant
• B. Collaboration during contract negotiation encourages stakeholders to develop consensus but typically increases cycle times and the likelihood that the contract will fail
• C. Differing legal requirements affect the attitudes of contracting parties as well as the length content and language of contracts
• D. A contract is a tool used by both suppliers and customers though it offers commercial assurance of the relationship, purely from a customer perspective

Answer: C

NEW QUESTION 16

Which of the following must be adjusted to index a progressive tax system to inflation?

• A. Tax deductions, exemptions, and tax filings.
• B. Tax deductions, exemptions, and tax brackets.
• C. Tax brackets, tax deductions, and tax payments.
• D. Tax brackets, exemptions, and nominal tax receipts.

Answer: B

NEW QUESTION 17

When granting third parties temporary access to an entity's computer systems, which of the following is the most effective control?

• A. Access is approved by the supervising manager.
• B. User accounts specify expiration dates and are based on services provided.
• C. Administrator access is provided for a limited period.
• D. User accounts are deleted when the work is completed.

Answer: B

NEW QUESTION 18
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