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IIA-CIA-Part3 exam is intended for those individuals who have completed the first two parts of the CIA certification program. Candidates must have a strong understanding of the internal auditing profession and the principles of internal auditing. IIA-CIA-Part3 exam is administered in a computer-based format and consists of 100 multiple-choice questions. Candidates have two and a half hours to complete the exam.

IIA-CIA-Part3 Exam, also known as Business Knowledge for Internal Auditing, is an essential certification exam for internal auditors who want to demonstrate their extensive knowledge and skills in the field. IIA-CIA-Part3 Exam is conducted by the Institute of Internal Auditors (IIA) and is a crucial step towards obtaining the Certified Internal Auditor (CIA) designation. The IIA-CIA-Part3 Exam is designed to assess the candidate's understanding of business concepts, including risk management, organizational structure, governance, and financial management.

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IIA-CIA-Part3 exam is a critical component of the CIA certification program and is essential for professionals who want to establish themselves as experts in the field of internal auditing. By passing IIA-CIA-Part3 Exam and earning the CIA certification, individuals can enhance their career prospects, demonstrate their knowledge and skills to potential employers and clients, and gain recognition as a leader in the field.

IIA Business Knowledge for Internal Auditing Sample Questions (Q87-Q92):

NEW QUESTION # 87
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. An increase in the cost of capital.
B. A longer average collection period.
C. A higher cost per unit sold.
D. A tougher collections policy that reduces the bad debt loss ratio.

Answer: D

NEW QUESTION # 88
The average labor cost per unit for the first batch produced by a new process is US $120. The cumulative average labor cost after the second batch is US $72 per product. Using a batch size of 100 and assuming the learning curve continues, the total labor cost of four batches will be:

A. US$2,592
B. US$4,320
C. US$10,368
D. US$17,280

Answer: D

Explanation:
The learning curve reflects the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. Ordinarily, the curve is expressed in a percentage of reduced time to complete a task for each doubling of cumulative production. One common assumption in a learning curve model is that the cumulative average time (and labor cost) per unit is reduced by a certain percentage each time production doubles. Given a US $120 cost per unit for the first 100 units and a US $72 cost per unit when cumulative production doubled to 200 units, the learning curve percentage must be 60% (US $72 + $120). If production is again doubled to 400 units (four batches), the average unit labor cost should be US $43.20 ($72 x 60%). Hence, total labor cost for 400 units is estimated to be US $17,280 (400 units x $43.20).

NEW QUESTION # 89
An entity allows customers to redeem 20 coupons for a toy cost US $3.00). Estimates are that 40% of coupons distributed will result in redemption. Since beginning the promotion this year, 4 million coupons were distributed and 1 million coupons redeemed. The adjusting entry to accrue for unredeemed coupons at year-end is

A. Option C
B. Option A
C. Option D
D. Option B

Answer: B

Explanation:
An expense and a provision should be accurate for the coupons still outstanding that are expected to be redeemed. Of the 4 million coupons distributed, 411%, or 1.6 million, are estimated to be redeemable. Of those, 1 million have already been redeemed, and 600,000 more are expected to be redeemed. The promotion requires 20 coupons to receive one toy, so, 30,000600,000 / 20) more toys will be required. Each toy costs US $3.00, creating a provision of US $90,00030,000 x $3.00).

NEW QUESTION # 90
An internal audit activity is piloting a data analytics model, which aims to identify anomalies in payments to vendors and potential fraud indicators Which of the following would be the most appropriate criteria for assessing the success of the piloted model?

A. The development and maintenance costs associated with the model
B. The feedback of auditors involved with developing the model
C. The number of criminal investigations initiated based on the outcomes of the model
D. The percentage of cases flagged by the model and confirmed as positives.

Answer: A

NEW QUESTION # 91
Which of the following authentication controls combines what a user knows with the unique characteristics of the user, respectively?

A. Password and fingerprint
B. Voice recognition and token
C. Password and token
D. Fingerprint and voice recognition

Answer: A

Explanation:
Reference: IIA Business Knowledge for Internal Auditing, Multi-Factor Authentication section.

NEW QUESTION # 92
......

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Ray King Ray King

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