Latest CIA Part 3 Mock Exam & Practice Questions

Question #1

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. euristic terminal

B. erimeter switch

C. efault settings

D. igital signatures

View answer

Correct Answer: D

Question #2

The four components of time series data are secular trend, cyclical variation, seasonality, and random variation. The seasonality in the data can be removed by:

A. ultiplying the data by a seasonality factor

B. gnoring it

C. aking the weighted average over four time periods

D. ubtracting a seasonality factor from the data

View answer

Correct Answer: C

Question #3

The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a (n):

A. raining cost

B. xternal failure cost

C. nternal failure cost

D. revention cost

View answer

Correct Answer: C

Question #4

Given an acid-test ratio of 2.0, current assets of US $5,000, and inventory of US $2,000, the value of current liabilities is:

A. S $1,500

B. S $2,500

C. S $3,500

D. S $6,000

View answer

Correct Answer: A

Question #5

In a traditional ERP system, the receipt of a customer order may result in:I). Customer tracking of the order's progressII). Automatic replenishment of inventory by a supplierIII). Hiring or reassigning of employeesIV). Automatic adjustment of output schedules

A. , II, and IV only

B. and Ill only

C. ll and IV only

D. , II, III, and IV

View answer

Correct Answer: C

Question #6

Which of the following e-commerce audit protocol items relates to the area of fraud?

A. egregation of duties

B. nadequacies in interfacing between e-commerce and financial management systems

C. xamination of service level agreements between buyer, supplier, and certification authority

D. enial of orders placed or received, goods received, or payments made

View answer

Correct Answer: D

Question #7

Which of the following classes of securities are listed in order from lowest risk/opportunity for return to highest risk/opportunity for return?

A. orporate first mortgage bonds; corporate income bonds; preference shares

B. orporate income bonds: corporate mortgage bonds: subordinated debentures

C. rdinary shares; corporate first mortgage bonds, corporate second mortgage bonds

D. reference shares; ordinary shares; corporate debentures

View answer

Correct Answer: A

Question #8

Which of the following is likely to occur when an organization decides to adopt a decentralizedorganizational structure?

A. slower response to external change

B. ess controlled decision making

C. ore burden on higher-level managers

D. ess use of employees' true skills and abilities

View answer

Correct Answer: B

Question #9

Electronic data interchange EDI) offers significant benefits to organizations, but it is not without certain major obstacles. Successful EDI implementation begins with which of the following?

A. apping the work processes and flows that support the organization's goals

B. urchasing new hardware for the EDI system

C. electing reliable vendors for translation and communication software

D. tandardizing transaction formats and data

View answer

Correct Answer: A

Question #10

An example of secured short-term financing is:

A. ommercial paper

B. warehouse receipt

C. revolving credit agreement

D. rade credit

View answer

Correct Answer: B

Question #11

Assigning passwords to computer users is a control to prevent unauthorized access. Because a password does not conclusively identify a specific individual, it must be safeguarded from theft. A method used to protect passwords is to

A. equire that they be displayed on computer screens but not printed on hard copy output

B. et maximum character lengths

C. equire passwords to be changed periodically

D. liminate all records of old passwords

View answer

Correct Answer: C

Question #12

When comparing two companies, if all else is equal, the entity that has a higher dividend payout ratio will have a:

A. igher marginal cost of capital

B. ower debt ratio

C. igher investment opportunity schedule

D. igher price to earnings ratio

View answer

Correct Answer: A

Question #13

The responsibilities of a data administrator include monitoring:

A. he database industry

B. he performance of the database

C. atabase security

D. ackup of the system

View answer

Correct Answer: A

Question #14

Which of the following criteria would be most useful to a sales department manager in evaluating the performance of the manager's customer-service group?

A. he customer is always right

B. ustomer complaints should be processed promptly

C. mployees should maintain a positive attitude when dealing with customers

D. ll customer inquiries should be answered within 7 days of receipt

View answer

Correct Answer: D

Question #15

An assembly plant accumulates its variable and fixed manufacturing overhead costs in a single cost pool, which is then applied to work in process using a single application base.The assembly plant management wants to estimate the magnitude of the total manufacturing overhead costs for different volume levels of the application activity base using a flexible budget formula. If there is an increase in the application activity base that is within the relevant range of activity for the assembly plant, which one

A. he variable cost per unit is constant, and the total fixed costs decrease

B. he variable cost per unit is constant, and the total fixed costs increase

C. he variable cost per unit and the total fixed costs remain constant

D. he variable cost per unit increases and the total fixed costs remain constant

View answer

Correct Answer: C

Question #16

The credit instrument known as a banker's acceptance:

A. alls for immediate payment upon delivery of the shipping documents to the bank's customer and acceptance of Hoods by the bank

B. nvolves an invoice being signed by the banker upon receipt of goods, after which both the banker and the seller record the transaction on their respective books

C. s a time draft payable on a specified date and guaranteed by the bank

D. s a method of sales financing in which the bank retains title to the goods until the buyer has completed payment

View answer

Correct Answer: C

Question #17

An internal auditor for a large automotive parts retailer wishes to perform a risk analysis and wants to use an appropriate statistical tool to help identify stores that would be out of line compared to the majority of stores. The most appropriate statistical tool to use is

A. inear time series analysis

B. ross-sectional regression analysis

C. ross tabulations with chi-square analysis of significance

D. ime series multiple regression analysis to identify changes in individual stores overtime

View answer

Correct Answer: B

Question #18

A domestic entity and a foreign entity purchased the same stock on the foreign stock exchange and held the stock for 1 year. The value of the foreign currency weakened against the domestic currency over this period. Comparing the returns of the two companies, what will be the domestic entity's return?

A. ower

B. igher

C. he same

D. igher in the short-run but lower in the long-run

View answer

Correct Answer: A

Question #19

Which of the following is true concerning HTML?

A. he acronym stands for HyperText Material Listing

B. he language is among the most difficult to learn

C. he language is independent of hardware and software

D. TML is the only language that can be used for Internet documents

View answer

Correct Answer: C

Question #20

Which of the following statements regarding benchmarking is false?

A. enchmarking involves continuously evaluating the practices of best-in-class organization and adapting company processes to incorporate the best of these practices

B. enchmarking, in practice, usually involves a company's formation of benchmarking teams

C. enchmarking is an ongoing process that entails quantitative and qualitative measurement of the difference between the company's performance of an activity and the performance by the best in the world or the best in the industry

D. he benchmarking organization against which a firm is comparing itself must be a direct competitor

View answer

Correct Answer: D

Question #21

If the average age of inventory is 60 days, the average age of the accounts payable is 30 days, and the average age of accounts receivable is 45 days, the number of days in the cash flow cycle is:

A. 35 days

B. 0 days

C. 5 days

D. 05 days

View answer

Correct Answer: C

Question #22

A company, which has many branch stares, has decided to use its best-performing stare as a benchmark organization far the purpose of analyzing the accuracy and reliability of branch stare financial reporting.Which one of the fallowing is the most likely measure to be included in a financial benchmark?

A. igh turnover of employees

B. igh level of employee participation in setting budgets

C. igh amount of bad debt write-offs

D. igh number of suppliers

View answer

Correct Answer: C

Question #23

Data access security related to applications may be enforced through all of the following except:

A. ser identification and authentication functions incorporated in the application

B. tility software functions

C. ser identification and authentication functions in access control software

D. ecurity functions provided by a database management system

View answer

Correct Answer: B

Question #24

A firm sells its product in a foreign market for a much higher price than in its home market.The reason is most likely:

A. rice elasticity of demand

B. umping

C. ray market activity

D. rice escalation

View answer

Correct Answer: D

Question #25

Which of the following is not required when ISO 9000 standards are adopted?

A. rganization of a quality management system

B. reation of an internal audit system

C. onsistent high quality products

D. n-site inspections by a registrar

View answer

Correct Answer: C

Question #26

Which of the following costs of quality is a failure cost?

A. ystems development costs

B. osts of inspecting in-process items

C. ontract penalty for delivery of nonconforming goods

D. osts of quality circles

View answer

Correct Answer: C

Question #27

A real estate brokerage firm is moving into a building that is already equipped with extensive telephone wiring. The firm is considering the installation of a digital private branch exchange PBX) to connect computers and other office devices, such as copying machines, printers, and fax machines. A limitation of using a PBX-based system for this network is that:

A. he firm would be dependent on others for system maintenance

B. he system cannot easily handle large volumes of data

C. oaxial cabling would have to be installed throughout the building

D. elocating devices in the office would be difficult and expensive

View answer

Correct Answer: B

Question #28

Which of the following access setups is appropriate in a computer environment?

A. es No No No

B. es No No Yes

C. o Yes Yes No

D. o Yes Yes Yes

View answer

Correct Answer: A

Question #29

A real estate brokerage firm is moving into a building that is already equipped with extensive telephone wiring. The firm is considering the installation of a digital private branch exchange PBX) to connect computers and other office devices, such as copying machines, printers, and fax machines. A limitation of using a PBX-based system for this network is that:

A. he firm would be dependent on others for system maintenance

B. he system cannot easily handle large volumes of data

C. oaxial cabling would have to be installed throughout the building

D. elocating devices in the office would be difficult and expensive

View answer

Correct Answer: B

Question #30

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

A. critical path method CPM) system

B. materials requirements planning MRP) system

C. n economic order quantity EOQ) system

D. n ABC system

View answer

Correct Answer: B

Question #31

A client is concerned that a power outage or disaster could impair the computer hardware's ability to function as designed. The client desires off-site backup hardware facilities that are fully configured and ready to operate within several hours. The client most likely should consider a:

A. old site

B. ool site

C. arm site

D. ot site

View answer

Correct Answer: D

Question #32

The effect of just-in-time production approaches:

A. educes the dependency on suppliers

B. educes the cost of implementing strategies

C. ecreases production facility flexibility

D. ncreases the need for a dependable workforce

View answer

Correct Answer: B

Question #33

The problem just described is beast approved by use of which quantitative method?

A. ntegrated autoregressive-moving average ARIMA) modeling

B. xponential smoothing, multiple parameters

C. ueuing theory

D. inear programming

View answer

Correct Answer: C

Question #34

Various tools are employed to control large scale projects. They include all of the following except:

A. ERT

B. PM

C. tatistical process control

D. antt charts

View answer

Correct Answer: C

Question #35

Quality costing is similar in service and manufacturing organizations. Nevertheless, the differences between these organizations have certain implications for quality management.Thus,

A. irect labor costs are usually a higher percentage of total costs in manufacturing organizations

B. xternal failure costs are relatively greater in service organizations

C. uality improvements resulting in more efficient use of labor time are more likely to be accepted by employees in service organizations

D. oor service is less likely to result in loss of customers than a faulty product

View answer

Correct Answer: B

Question #36

A means of limiting production delays caused by equipment breakdown and repair is to:

A. chedule production based on capacity planning

B. lan maintenance activity based on an analysis of equipment repair work orders

C. re-authorize equipment maintenance and overtime pa}

D. stablish a preventive maintenance program for all production equipment

View answer

Correct Answer: D

Question #37

A shortest-route algorithm is used in network models to:

A. dentify bottlenecks in a network and hence identify the longest path

B. inimize total travel time from one site to each of the other sites in a transportation system

C. aximize throughput in networks with distinct entry source node) and exit sink node) points

D. dentify the set of connecting branches having the shortest combined length

View answer

Correct Answer: B

Question #38

Which of the following is a characteristic of total quality management TQM)?

A. anagement by objectives

B. n-the-job training by other workers

C. uality by final inspection

D. ducation and self-improvement

View answer

Correct Answer: D

Question #39

In which of the following organizational structures does total quality management (TQM) work best?

A. ierarchal

B. eams of people from the same specialty

C. eams of people from different specialties

D. pecialists working individually

View answer

Correct Answer: C

Question #40

One advantage of a database management system DBMS) is:

A. hat each organizational unit takes responsibility and control for its own data

B. he cost of the data processing department decreases as users are now responsible for establishing their own data handling techniques

C. decreased vulnerability as the database management system has numerous security controls to prevent disasters

D. he independence of the data from the application programs, which allows the programs to be developed for the user's specific needs without concern for data capture problems

View answer

Correct Answer: D

Question #41

Which of the following is a false statement about XBRL?

A. BRL is freely licensed

B. BRL facilitates the automatic exchange of information

C. BRL is used primarily in the U

D. BRL is designed to work with a variety of software applications

View answer

Correct Answer: C

Question #42

An audit manager has just returned from an executive training program and has suggested that the audit department develop a mathematical model to help identify factors that may be causing changes in the cost of production. According to the manager, the model should recognize that the company currently has three separate production cost) ': enters.Which of the following approaches would best provide the analysis suggested by the audit manager?

A. evelop a classical variables sampling estimate of cost of production per department, with the sample stratified by the dollar value of each product produced

B. evelop a -gear ratio analysis of the cost of production compared to the cost of raw inventory across the three departments

C. evelop a multiple regression analysis of production costs, including such variables as raw material inventory costs, number of employees in the department, and overtime pay

D. evelop a linear regression analysis relating the cost of production to the cost of goods sold

View answer

Correct Answer: C

Question #43

Which of the following represents the greatest exposure to the integrity of electronic funds transfer data transmitted from a remote terminal?

A. oor physical access controls over the data center

B. etwork viruses

C. oor system documentation

D. eased telephone circuits

View answer

Correct Answer: D

Question #44

Physical distribution is the moving of finished products to:

A. etail outlets

B. hipping point

C. onsumers

D. arehouses

View answer

Correct Answer: C

Question #45

Which of the following is false with respect to client-server networks?

A. client-server network divides processing of an application between a client machine on a network and a server

B. n a client-server network, many applications reside on the client computer

C. he server customarily manages peripheral hardware and control

D. client-server network can cope with only 12 or fewer clients at a time

View answer

Correct Answer: D

Question #46

CORRECT TEXTA has a times-interest-earned ratio of:

A. our times

B. ive times

C. 0 times

D. 5 times

View answer

Correct Answer: B

Question #47

The company uses a planning system that focuses first on the amount and timing of finished goods demanded and then determines the derived demand for raw material, components, and subassemblies at each of the prior stages of production. This system is referred to as:

A. conomic order quantity

B. aterial requirements planning

C. inear programming

D. ust-in-time purchasing

View answer

Correct Answer: B

Question #48

Which of the following channel structures have the best means of managing channel conflict?I). ConventionalII). VerticalIII). HorizontalIV). Multichannel

A. and II

B. I, III, and IV

C. , III, and IV

D. I and III

View answer

Correct Answer: B

Question #49

Under the "output" approach, gross domestic product GDP) is measured as:

A. on-income charges or allocations + wages + rents + interest

B. on-income charges or allocations + wages + rents + interest + profits

C. onsumption expenditures + investment + government purchases + interest

D. onsumption expenditures + investment + government purchases + expenditures by foreigners

View answer

Correct Answer: D

Question #50

Which of the following would be the most appropriate starting point for a compliance evaluation of software licensing requirements for an organization with more than 15,000 computer workstations?

A. etermine if software installation is controlled centrally or distributed throughout the organization

B. etermine what software packages have been installed on the organization' s computers and the number of each package installed

C. etermine how many copies of each software package have been purchased by the organization

D. etermine what mechanisms have been installed for monitoring software usage

View answer

Correct Answer: A

Question #51

A systems development approach used to quickly produce a model of user interfaces, user interactions with the system, and process logic is called:

A. eural networking

B. rototyping

C. eengineering

D. pplication generation

View answer

Correct Answer: B

Question #52

After implementing EDI with suppliers, a company discovered a dramatic increase in the prices it paid the single supplier of some special materials for its primary product line. After consulting with the supplier, the company determined that the supplier had assumed the risk of not having inventory and raised its prices accordingly since the company was the only buyer for the special materials. The best approach for managing inventory in this situation is for the company to:

A. ive the supplier more information about expected use of the materials

B. emand that the supplier reduce the prices of the materials

C. ind another supplier to replace the one charging higher prices

D. hange its product line so the special materials are no longer needed

View answer

Correct Answer: A

Question #53

Why would an entity maintain a compensating cash balance?

A. o make routine payments and collections

B. o pay for banking services

C. o provide a reserve in case of unforeseen fluctuations in cash flows

D. o take advantage of bargain purchase opportunities that may arise

View answer

Correct Answer: B

Question #54

Product-quality-related costs are part of a total quality control program. A product-quality related cost incurred in detecting individual products that do not conform to specifications is an example of a n)

A. revention cost

B. ppraisal cost

C. xternal failure cost

D. pportunity cost

View answer

Correct Answer: B

Question #55

In which of the following organizational structures does total quality management (TQM) work best?

A. ierarchal

B. eams of people from the same specialty

C. eams of people from different specialties

D. pecialists working individually

View answer

Correct Answer: C

Question #56

The internal audit activity has undertaken an audit of the shipping and receiving department of a department store chain. The best engagement tool for this purpose most likely is:

A. ompetitive benchmarking

B. trategic benchmarking

C. nternal benchmarking

D. rocess benchmarking

View answer

Correct Answer: D

Question #57

Which of the following is a characteristic of total quality management TQM)?

A. anagement by objectives

B. n-the-job training by other workers

C. uality by final inspection

D. ducation and self-improvement

View answer

Correct Answer: D

Question #58

ABC Company is a clothing retailer. Greg is an employee of ABC Company and has recently purchased a leather jacket from ABC Company's website. This activity is:

A. n e-commerce activity characterized as B2C

B. n e-commerce activity characterized as B2E

C. n e-commerce activity characterized as B2B

D. ot an e-commerce activity because Greg is an employee of ABC Company

View answer

Correct Answer: A

Question #59

An entity uses the following formula in determining its optimal level of cash.This formula is a modification of the economic order quantity EOQ formula used for inventory management. Assume that the set of selling marketable securities is US $10 per transaction and the interest rate on marketable securities is 6% per year. The entity estimates that it will make cash payments of US $12.000 over a one-month period.What is the average cash balance rounded to the nearest dollar)?

A. S $1,000

B. S $2,000

C. S $3,464

D. S $6,928

View answer

Correct Answer: C

Question #60

Using absorption costing, fixed manufacturing overhead costs are best described as:

A. irect period costs

B. ndirect period costs

C. irect product costs

D. ndirect product costs

View answer

Correct Answer: D

Question #61

The sales manager for a builder of custom yachts developed the following conditional table for annual production and sales:According to the table, how many yachts should be built?

A. 0

B. 0

C. 0

D. 0

View answer

Correct Answer: C

Question #62

Which of the following e-commerce audit protocol items relates to the area of fraud?

A. egregation of duties

B. nadequacies in interfacing between e-commerce and financial management systems

C. xamination of service level agreements between buyer, supplier, and certification authority

D. enial of orders placed or received, goods received, or payments made

View answer

Correct Answer: D

Question #63

A company has several departments that conduct technical studies and prepare reports for clients. Recently, there have been long delays in having these reports copied at the company's centralized copy center because of the dramatic increase in business. Management is considering decentralizing copy services to reduce the turnaround and provide clients with timely reports. An appropriate technique for minimizing turnaround time and the cost of providing copy services is:

A. ueuing theory

B. inear programming

C. egression analysis

D. ame theory

View answer

Correct Answer: A

Question #64

When a manager generalizes from the evaluation of one or a few traits to the employee's total performance, she has made:

A. judgmental evaluation

B. n evaluation subject to the halo effect

C. projection

D. n objective evaluation

View answer

Correct Answer: B

Question #65

The four components of time series data are secular trend, cyclical variation, seasonality, and random variation. The seasonality in the data can be removed by:

A. ultiplying the data by a seasonality factor

B. gnoring it

C. aking the weighted average over four time periods

D. ubtracting a seasonality factor from the data

View answer

Correct Answer: C

Question #66

The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as

A. revention costs

B. ppraisal costs

C. ework costs

D. ailure costs

View answer

Correct Answer: B

Question #67

Omen Company is a manufacturer of men's shirts. It distributes weekly sales reports to each sales manager. The quantity 2R5 appeared in the quantity sold column for one of the items on the weekly sales report for one of the sales managers. The most likely explanation for what has occurred is that the:

A. utput quantity has been stated in hexadecimal numbers

B. omputer has malfunctioned during execution

C. rinter has malfunctioned and the "R" should have been a decimal point

D. rogram did not contain a data checking routine for input data

View answer

Correct Answer: D

Question #68

If the bank uses the minimax regret criterion for selecting the location of the branch, it will select.

A. 1

B. 2

C. 3

D. 4

View answer

Correct Answer: B

Question #69

What is the percentage of the total variance that can be explained by the regression?

A. 9

B. 9

C. 0

D. 9

View answer

Correct Answer: A

Question #70

The current generation of ERP software ERP II) may include an advanced planning and scheduling system that:

A. etermines the location of retail outlets

B. onnects the organization with other members of a joint venture

C. ontrols the flow of a manufacturer's materials and components through the supply chain

D. ermits tracking of orders by customers

View answer

Correct Answer: C

Question #71

CORRECT TEXTSimulation, a widely used technique in decision modeling, is a(n):

A. rocess of modeling whereby real activities are represented in mathematical or other form

B. echnique used to pinpoint random deviations in industrial processes and other repetitive operations

C. echnique used to separate costs into fixed and variable portions

D. nventory management model that is used to calculate the optimum order quantity

View answer

Correct Answer: A

Question #72

An organization must manage its flows of raw materials, components, finished goods, services, or information through intermediaries to ultimate consumers. These flows may occur across the functions in an organization's:

A. upply chain

B. alue chain

C. ogistic chain

D. ntegrated chain

View answer

Correct Answer: B

Question #73

Monitoring is an important component of internal control.Which of the following is not an example of monitoring?

A. anagement regularly compares divisional performance with budgets for the division

B. ata processing management regularly generates exception reports for unusual transactions or volumes of transactions and follows up with investigation as to causes

C. ata processing management regularly reconciles batch control totals for items processed with batch controls for items submitted

D. anagement has asked internal auditing to perform regular audits of the controls over cash processing

View answer

Correct Answer: C

Question #74

Capital structure decisions involve determining the proportions of financing from:

A. hort-term or long-term debt

B. ebt or equity

C. hort-term or long-term assets

D. etained earnings or ordinary stock

View answer

Correct Answer: B

Question #75

Which of the following pieces of information is useful to an internal auditor who is conducting a risk assessment for an e-commerce project?I). The business plan for the e-commerce projectII). The level of functionality required to meet the end user's needs as well as management's objectives.III). The results of a risk assessment performed to evaluate impact of internal and external forces RRR.

A. and II only

B. and III only

C. I and III only

D. )

View answer

Correct Answer: D

Question #76

An IT manager has only enough resources to install either a new payroll system or a new data security system, but not both.Which of the following actions is most appropriate?

A. iving priority to the security system

B. eaving the decision to the IT manager

C. ncreasing IT staff output in order for both systems to be installed

D. aving the information systems steering committee set the priority

View answer

Correct Answer: D

Question #77

An entity has daily rash receipts of US $300,000 and is interested in acquiring a lockbox service in order to reduce collection time Bank 1's lockbox service cost US $3,000 per month and will reduces collection time by 3 days. Bank 2's lockbox service costs US $5000 per month and will reduce collection time by 4 days. Bank 3's lockbox service cost US $500 per month and will reduce collection time by 4 days. Bank 2's lockbox service costs US $500 per month and will reduce collection time by 4 days. Bank 3's

A. ank 1

B. ank 2

C. ank 3

D. ank 4

View answer

Correct Answer: D

Question #78

One drawback of business process reengineering BPR), sometimes referred to as business process analysis, is:

A. mproved efficiency in the business processes analyzed

B. xcess of cast over the benefit

C. eduction of operational efficiency

D. mployee resistance to change

View answer

Correct Answer: D

Question #79

In a product's life cycle, the first symptom of the decline stage is a decline in the:

A. irm's inventory levels

B. roduct's sales

C. roduct's production cost

D. roduct's prices

View answer

Correct Answer: B

Question #80

Various tools are employed to control large scale projects. They include all of the following except:

A. ERT

B. PM

C. tatistical process control

D. antt charts

View answer

Correct Answer: C

Question #81

When film is sold for use with a camera, this is an example of which of the following product mix pricing strategies?

A. y-product pricing

B. ptional product pricing

C. aptive product pricing

D. roduct bundle pricing

View answer

Correct Answer: C

Question #82

Which of the following will allow a manufacturer with limited resources to maximize profits?

A. he Delphi technique

B. xponential smoothing

C. egression analysis

D. inear programming

View answer

Correct Answer: D

Question #83

To remove the effect of seasonal variation from a time series, original data should be:

A. ncreased by the seasonal factor

B. educed by the seasonal factor

C. ulti plied by the seasonal factor

D. ivided by the seasonal factor

View answer

Correct Answer: D

Question #84

An entity has 10.000 outstanding shares with a market value of US $25 each. It just paid a US $1 per share dividend. Dividends are expected to grow at a constant rate of 10%. If flotation costs are 5% of the selling price, the cost of new equity financing is calculated by the following formula.

A. ption A

B. ption B

C. ption C

D. ption D

View answer

Correct Answer: C

Question #85

What is RST's acid-test or quick ratio at the end of Year 6?

A.

B.

C.

D.

View answer

Correct Answer: C

Question #86

The number of shares the entity had outstanding for the year, for the purpose of computing basic earnings per share (BEPS), is:

A. 5,000

B. 0,000

C. 6,000

D. 9,000

View answer

Correct Answer: C

Question #87

Governments most likely restrict trade in the long run to:I). Help foster new industries.II). Protect declining industries.III). Increase tax revenues.IV). Foster national security.

A. only

B. and II only

C. I and III only

D. , II, and IV only

View answer

Correct Answer: B

Question #88

Which of the following risks is not greater in an electronic funds transfer EFT environment than in a manual system using paper transactions?

A. nauthorized access and activity

B. uplicate transaction processing

C. igher cost per transaction

D. nadequate backup and recovery capabilities

View answer

Correct Answer: C

Question #89

What are the possible characteristics of a client-server configuration in a current ERP system?I). Thin clients, local area network, single serverII). Fat clients, wide area network, multiple serversIII). Fat clients, connection via Internet, and single server

A. , II, and III

B. I and Ill only

C. I only

D. only

View answer

Correct Answer: A

Question #90

Your company (Company Y) has decided to enter the European market with one of its products and is now considering three advertising strategies. This market currently belongs to Company X. Company X is aware that your company is entering the market and is itself considering steps to protect its market. An analyst for your company has identified three strategies Company X might develop and has shown the payoffs for each in the tables below.The analyst has formulated this problem as a:

A. ero-sum game

B. ooperative game

C. risoner's dilemma

D. ame against nature

View answer

Correct Answer: A

Question #91

One advantage of a database management system DBMS) is:

A. hat each organizational unit takes responsibility and control for its own data

B. he cost of the data processing department decreases as users are now responsible for establishing their own data handling techniques

C. decreased vulnerability as the database management system has numerous security controls to prevent disasters

D. he independence of the data from the application programs, which allows the programs to be developed for the user's specific needs without concern for data capture problems

View answer

Correct Answer: D

Question #92

Net domestic product is composed of the total market value of all?

A. inal goods and services produced in the economy in 1 year

B. oods and services produced in the economy in 1 year

C. inal goods and services produced in the economy in 1 year minus the capital consumption allowance

D. oods and services produced in the economy in 1 year minus the capital consumption allowance

View answer

Correct Answer: C

Question #93

A contractual arrangement that gives the owner the right to buy or sell an asset at a fixed price at any moment in time before or on a specified date is a(n):

A. uropean option

B. oreign option

C. uture option

D. merican option

View answer

Correct Answer: D

Question #94

Which of the following statements about voice communications is true?

A. odern voice recognition input devices have large vocabularies and short training periods

B. voice output device converts speech into digital data

C. ell phones and PCS services use the same frequency radio waves

D. agers can alert users to the receipt of messages but cannot transmit text

View answer

Correct Answer: A

Question #95

Each stock out of a product sold by Company I-: costs US $1,750 per occurrence. The carrying cost per unit of inventory is US $5 per year, and the company orders 1,500 units of product 24 times a year at a cost of US $100 per order. The probability of a stock out at various levels of safety stock is.What is the optimal safety stock level for the company?

A. units

B. 00 units

C. 00 units

D. 00 units

View answer

Correct Answer: D

Question #96

According to eSAC, accountability is:

A. sually an issue with regard to trade secrets and other intellectual property

B. he control attribute that identifies the source of a transaction

C. he restriction of access to processing and storage devices

D. ost often applicable to personal information about employees and customers

View answer

Correct Answer: B

Question #97

Which of the following terms is not used in project management?

A. ummy activity

B. atest finish

C. ptimistic time

D. umpy demand

View answer

Correct Answer: D

Question #98

Factoring is the:

A. elling of accounts receivable by one entity to another

B. elling of inventory by one entity to another

C. onversion of accounts receivable to bad debt on financial statements for accounts that are long overdue

D. djustment of inventories on financial statements for supplies that have become obsolete

View answer

Correct Answer: A

Question #99

The company uses a planning system that focuses first on the amount and timing of finished goods demanded and then determines the derived demand for raw materials, components, and subassemblies at each of the prior stages of production. This system is referred to as:

A. conomic order quantity

B. aterials requirements planning

C. inear programming

D. ust-in-time purchasing

View answer

Correct Answer: B

Question #100

Which of the following are critical risk and control issues that an internal auditor must address?I). Rapid technology changesII). Maintenance of transaction integrityIII). Website content review and approvalIV). Changes to organizational structures

A. and II only

B. and III only

C. I and III only

D. , II, Ill, and IV

View answer

Correct Answer: D

DON'T WANT TO MISS A THING?

100% Pass Cisco, PMP, CISA, CISM, AWS Practice test on SALE!
Get Now

Latest CIA Part 3 Mock Exam & Practice Questions | SPOTO

View The Updated CIA Part 3 Exam Questions

View The Updated IIA Exam Questions

View Answers after Submission

DON'T WANT TO MISS A THING?

100% Pass Cisco, PMP, CISA, CISM, AWS Practice test on SALE! Get Now

Latest CIA Part 3 Mock Exam & Practice Questions | SPOTO

View The Updated CIA Part 3 Exam Questions

View The Updated IIA Exam Questions

View Answers after Submission

100% Pass Cisco, PMP, CISA, CISM, AWS Practice test on SALE!
Get Now