Free IIA-CIA-Part3 Exam Braindumps

- (Exam Topic 1)
Which of the following best describes a market signal?

1. A. The bargaining power of buyers is forcing a drop in market prices.
2. B. There is pressure from the competitor's substitute products.
3. C. Strategic analysis by the organization indicates feasibility of expanding to new market niches.
4. D. The competitor announces a new warranty program.

Correct Answer: D

- (Exam Topic 1)
Capacity overbuilding is most likely to occur when management is focused on which of the following?

1. A. Marketing.
2. B. Finance.
3. C. Production.
4. D. Diversification.

Correct Answer: C

- (Exam Topic 1)
An internal auditor has been asked to conduct an investigation involving allegations of independent contractor fraud. Which of the following controls would be least effective in detecting any potential fraudulent activity?

1. A. Exception report identifying payment anomalies.
2. B. Documented policy and procedures.
3. C. Periodic account reconciliation of contractor charges.
4. D. Monthly management review of all contractor activity.

Correct Answer: B

- (Exam Topic 2)
In the current year, a merchandising organization had an inventory turnover ratio of 3.0, which was less than the industry average of 6.5. Which of the following offers the most likely explanation for this difference?

1. A. The organization has understated the amount of inventory in its financial statements
2. B. The organization has overstated the cost of purchases in its financial statements.
3. C. The organization is holding obsolete or damaged items in its inventory
4. D. The organization experienced an unexpectedly large increase in sales shortly before year end.

Correct Answer: C

- (Exam Topic 1)
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?

1. A. The total liabilities and total stockholder equity both increased.
2. B. The total liabilities and total stockholder equity both decreased.
3. C. The total liabilities decreased, and the total stockholder equity increased.
4. D. The total liabilities increased, and the total stockholder equity decreased.

Correct Answer: D