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The IIA CIA Part 3 exam is the last of a series of exams you take to complete the Certified Internal Auditor (CIA) designation. This is a highly respected and recognized certification that is usually looked upon favorably in the job market, especially when combined with other certifications like the CPA or CISA.

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The IIA IIA-CIA-Part3 exam is broken down into four domains: Business Acumen, Information Security, Information Technology, and Financial Management. Business Acumen covers the basics of business operations, including organizational structures, financial statements, and risk management. Information Security covers the protection of information systems and data, while Information Technology covers the use and management of technology in internal auditing. Finally, Financial Management covers financial analysis and reporting. Passing IIA-CIA-Part3 Exam demonstrates a candidate's knowledge of important business concepts and skills, ensuring they are equipped to provide valuable insights and recommendations to their organization.

IIA Business Knowledge for Internal Auditing Sample Questions (Q445-Q450):

NEW QUESTION # 445
In production management, product breakdown into component parts and lead times for procuring these parts is necessary for:

A. An ABC system
B. A critical path method CPM) system
C. An economic order quantity EOQ) system
D. A materials requirements planning MRP) system

Answer: D

Explanation:
Materials requirements planning MRP) is usually considered a computer-based I information system designed to plan and control raw materials used in a production setting. It assumes that estimated demand for materials is reasonably accurate and that suppliers can deliver based upon this accurate schedule. It is crucial that delivery delays be avoided because, under MRP, production delays are almost unavoidable if the materials are not on
hand. An MRP system uses a parts list, often called a bill of materials, and lead times for each type of material to obtain materials just as they are needed for planned production.

NEW QUESTION # 446
The Huron Corporation purchases 60,000 headbands per year. The average purchase lead time is 20 working days, and the maximum lead time is 27 working days. Safety stock equals 1,750 units. The corporation works 240 days per year. Huron should reorder headbands when the quantity in inventory reaches:

A. 1,750 units.
B. 6,750 units.
C. 5,250 units.
D. 5,000 units.

Answer: B

Explanation:
The reorder point is the quantity on hand when an order is placed. If it has 20-day normal lead time, a safety stock of 1,750 units, and usage of 250 units per day, an order should be placed when 27 days of inventory are on hand, a total of 6,750 units 250 units 27 days).
Jed Ryerson Computer Furniture, Inc. RCF) manufactures a line of office computer chairs. The annual demand for the chairs is estimated to be 5,000 units. The annual cost to hold one unit in inventory is US 10 per year, and the cast to initiate a production run is US $1,000. There are no computer chairs on hand, and RCF has scheduled four equal production runs of computer chairs for the coming year, the first of which is to be run immediately. RCF has 250 business days per year, sales occur uniformly throughout the year, and production start-up is within one day. RCF is considering using the following formula for determining the economic order quantity EOQ):

If: A = cast to initiate a production run per purchase order D = annual unit demand K = cost of carrying one unit per year

NEW QUESTION # 447
When evaluating the help desk services provided by a third-party service provider which of the following is likely to be the internal auditor's greatest concern?

A. Whether the provider's responses and resolutions were well defined according to the service-level agreement.
B. Whether a unique identification number was assigned to each issue identified by the service provider
C. Whether the service provider used its own facilities to provide help desk services
D. Whether every call that the service provider received was logged by the help desk.

Answer: A

NEW QUESTION # 448
An organization's account for office supplies on hand had a balance of $9,000 at the end of year one. During year two. The organization recorded an expense of $45,000 for purchasing office supplies. At the end of year two. a physical count determined that the organization has $11 ,500 in office supplies on hand. Based on this Information, what would he recorded in the adjusting entry an the end of year two?

A. A debit to office supplies on hand for S2.500
B. A debit to office supplies on hand for $20,500
C. A debit to office supplies on hand for $11.500
D. A debit to office supplies on hand for $42,500

Answer: C

NEW QUESTION # 449
According to IIA guidance, which of the following is an IT project success factor?

A. Focus on flexibility and adaptability, rather than use of a formal methodology.
B. Inclusion of critical features, rather than inclusion of an array of supplementary features.
C. Streamlined decision-making, rather than building consensus among users.
D. Consideration of the facts, rather than consideration of the emotions displayed by project stakeholders.

Answer: D

NEW QUESTION # 450
......

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Ted Long Ted Long

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