IIA IIA Certifications IIA-CIA-PART3 Questions & Answers

• Question 221:

  The process of scenario planning begins with which of the following steps?

  A. Determining the trends that will influence key factors in the organization's environment.

  B. Selecting the issue or decision that will impact how the organization conducts future business.

  C. Selecting leading indicators to alert the organization of future developments.

  D. Identifying how customers, suppliers, competitors, employees, and other stakeholders will react.

  Correct Answer: B

• Question 222:

  Import quotas that limit the quantities of goods that a domestic subsidiary can buy from its foreign parent company represent which type of barrier to the parent company?

  A. Political.

  B. Financial.

  C. Social.

  D. Tariff.

  Correct Answer: A

• Question 223:

  Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered: Activity Level Maintenance Cost Month Patient Days Incurred January 5,600 $7,900 February 7,100 $8,500 March 5,000 $7,400 April 6,500 $8,200 May 7,300 $9,100 June 8,000 $9,800

  If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

  A. Fixed cost.

  B. Variable cost.

  C. Total maintenance cost.

  D. Patient days.

  Correct Answer: D

• Question 224:

  All of the following are true with regard to the first-in, first-out inventory valuation method except:

  A. It values inventory close to current replacement cost.

  B. It generates the highest profit when prices are rising.

  C. It approximates the physical flow of goods.

  D. It minimizes current-period income taxes.

  Correct Answer: D

• Question 225:

  Unsecured loans are loans:

  A. That do not have to be repaid for over one year.

  B. That appear to be too risky for most lenders to consider.

  C. Granted on the basis of a company's credit standing.

  D. Backed by mortgaged assets.

  Correct Answer: C

• Question 226:

  Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

  A. Times interest earned, return on assets, and inventory turnover.

  B. Accounts receivable turnover, inventory turnover in days, and the current ratio.

  C. Accounts receivable turnover, return on assets, and the current ratio.

  D. Inventory turnover in days, the current ratio, and return on equity.

  Correct Answer: B

• Question 227:

  An organization has recorded the following profit and expenses: Profit before interest and tax $200,000 Sales $2,300,000 Purchases of materials $700,000 Interest expenses $30,000

  If the value-added tax (VAT) rate is 20 percent and the corporate tax rate is 30 percent, which of the following is the amount of VAT that the organization has to pay?

  A. $34,000

  B. $51,000

  C. $60,000

  D. $320,000

  Correct Answer: D

• Question 228:

  Under a value-added taxing system:

  A. Businesses must pay a tax only if they make a profit.

  B. The consumer ultimately bears the cost of the tax through higher prices.

  C. Consumer savings are discouraged.

  D. The amount of value added is the difference between an organization's sales and its cost of goods sold.

  Correct Answer: B

• Question 229:

  During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?

  A. Scope and initiation phase.

  B. Business impact analysis.

  C. Plan development.

  D. Testing.

  Correct Answer: B

• Question 230:

  Which of the following local area network physical layouts is subject to the greatest risk of failure if one device fails?

  A. Star network.

  B. Bus network.

  C. Token ring network.

  D. Mesh network.

  Correct Answer: C