Exambible offers free demo for IIA-CIA-Part3 exam. "Certified Internal Auditor - Part 3, Business Analysis and Information Technology", also known as IIA-CIA-Part3 exam, is a IIA Certification. This set of posts, Passing the IIA IIA-CIA-Part3 exam, will help you answer those questions. The IIA-CIA-Part3 Questions & Answers covers all the knowledge points of the real exam. 100% real IIA IIA-CIA-Part3 exams and revised by experts!
Q256. 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. The firm would be dependent on others for system maintenance.
B. The system cannot easily handle large volumes of data.
C. Coaxial cabling would have to be installed throughout the building.
D. Relocating devices in the office would be difficult and expensive.
Answer: B
Explanation:
A PBX has the advantage of using existing telephone lines and therefore not needing special
wiring. Moreover, equipment can be moved without necessitating rewiring.
However, because PBX-based systems use telephone wiring most often copper wire), they cannot
easily handle large volumes of data.
Q257. The expected value of perfect information is the:
A. Same as the expected profit under certainty.
B. Sum of the conditional profit loss) for the best event of each act times the probability of each event occurring.
C. Difference between the expected profit under certainty and the expected opportunity loss.
D. Difference between the expected profit under certainty and the expected monetary value of the best act under uncertainty:
Answer: D
Explanation:
Perfect information permits certainty that a future state of nature will occur. The expected value of perfect information determines the maximum amount a decision maker is willing to pay for information. It is the difference between the expected value without perfect information, that is, the expected value of the best action under uncertainty and the expected value under certainty. Under certainty, a decision maker knows in each case which state of nature will occur and can act accordingly.
Q258. If the probability of hot weather, given a hot weather forecast, is 50%, how much would the vendor be willing to pay for the forecast?
A. US $600
B. US $300
C. US $1,000
D. US $500
Answer: B
Explanation:
If the weather is hot and coffee is served, the vendor earns US $1,900. If the vendor knows the weather will be hot, she would sell soft drinks and make U $2,500, a US $600 increase.
Thus, the vendor should be willing to pay up to U $600 for perfect information regarding hot weather. However, if the forecasts are only 50% accurate, the information is not perfect. Accordingly, the vendor should be willing to pay only U $300 the U $600 potential increase in profits 50%) for the sometimes accurate forecasts.
Q259. Which of the following would Batchelder most likely use as a hash total?
A. FG HK80
B. 4
C. 204
D. 810
Answer: D
Explanation:
Input controls in batch computer systems are used to determine that no data are lost or added to the batch. Depending on the sophistication of a particular system. control may be accomplished by using record counts, batch totals, or hash totals. The hash total is a control total without a defined meaning, such as the total of employee numbers or invoice numbers, that is used to verify the completeness of data. The hash total of the invoice numbers is 810. Batch elder Company has the following invoices in a batch:
Q260. Activity scheduling information for the installation of a new computer system is given below.
For this project, the critical path is:
A. A-C
B. B-E
C. A-D-E
D. B-D-C
Answer: C
Explanation:
The critical path is the longest path because it defines the minimum duration of the project. A-D-E (4 + 6 + 5 = 15 days) is the critical path.
Q261. To remove the effect of seasonal variation from a time series, original data should be:
A. Increased by the seasonal factor.
B. Reduced by the seasonal factor.
C. Multi plied by the seasonal factor.
D. Divided by the seasonal factor.
Answer: D
Explanation:
Seasonal variations are common in many businesses. To remove the effect of seasonal variation from a time series, the original data (with the four trends) is divided by the seasonal norm.
Q262. The inventory model that follows the concept that 80% of the value of an inventory is in 20% of the inventory items is the:
A. ABC system.
B. Economic order quantity EOQ) model.
C. Just-in-time inventory system.
D. Materials requirements planning MRP) system.
Answer: A
Explanation:
The ABC method of inventory control requires management to exert greatest control over the A classification items, which usually include a relatively small percentage of total items but a high percentage of the dollar volume. This method is analogous to the 80/20 rule, which says, for instance, that 20% of the customers account for 80% of the profit.
Q263. A shortest-route algorithm is used in network models to:
A. Identify bottlenecks in a network and hence identify the longest path.
B. Minimize total travel time from one site to each of the other sites in a transportation system.
C. Maximize throughput in networks with distinct entry source node) and exit sink node) points.
D. Identify the set of connecting branches having the shortest combined length.
Answer: B
Explanation:
Network models are used to solve managerial problems pertaining to project scheduling, information systems design, and transportation systems design. Networks consisting of nodes and arcs may be created to represent in graphic form problems related to transportation, assignment, and transshipment. The shortest-route, minimal spanning tree, and maximal flow problems are other applications of network models. A shortest-route algorithm minimizes total travel time from one site to each of the other sites in a transportation system.
Q264. Security of monetary transactions is one example of an audit objective for an e-commerce
engagement. Which of the following is not an audit objective for an e-commerce engagement?
A. Effective use and control of digital signatures.
B. Adequacy and timeliness of operating data and information.
C. Effectiveness of customer authentication process.
D. Appropriateness of reporting lines.
Answer: D
Explanation:
Audit objectives for an e-commerce engagement may include:
.
Evidence of e-commerce transactions
.
Availability and reliability of security system Effective interface between e-commerce and financial systems Security of monetary transactions Effectiveness of customer authentication process
.
Adequacy of business continuity processes, including the resumption of operations
.
Compliance with common security standards Effective use and control of digital signatures Adequacy of systems, policies, and procedures to control Public Key Certificates using public key Documented evidence e if an effective system of internal control cryptographic techniques)
Q265. Using the information collected, the organization should focus on:
A. The total number of personal computer complaints that occurred.
B. The number of computer complaints associated with CD-ROM problems and new software usage.
C. The number of computer complaints associated with the lack of user knowledge and hardware problems.
D. The cost to alleviate all computer complaints.
Answer: C
Explanation:
Complaints based on lack of user knowledge and hardware problems are by far the most frequent according to this chart. Consequently, the company should devote its resources primarily to these issues. An organization has collected data on the complaints made by personal computer users and has categorized the complaints. An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
Q266. Queuing models are concerned with balancing the cost of waiting in the queue with the:
A. Cost of providing service.
B. Number of customers in the queue.
C. Average waiting time in the queue.
D. Usage rate for the service being rendered.
Answer: A
Explanation:
Queuing waiting-line) models minimize, for a given rate of arrivals, the sum of 1) the cost of providing service including facility costs and operating costs) and 2) the cost of idle resources waiting in line. The latter may be a direct cost, if paid employees are waiting, or an opportunity cost in the case of waiting customers. This minimization occurs at the point where the cost of waiting is balanced by the cost of providing service.
Q267. Which of the following pricing policies involves the selling company setting freight charges to
customers at the actual average freight cost?
A. Freight absorption pricing.
B. Uniform delivered pricing.
C. Zone pricing.
D. FOB-origin pricing.
Answer: B
Explanation:
In uniform delivered pricing, the company charges the same price, inclusive of shipping costs, to all customers, regardless of their location. This price is the company's average actual freight cost. Thus, both nearby and distant customers are charged the same amount. This policy is easy to administer, permits the company to advertise one price nationwide And facilitates marketing to faraway customers.
Q268. If a just-in-time purchasing policy is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?
A. An increase in purchasing costs and a decrease in stockout costs.
B. An increase in purchasing costs and a decrease in quality costs.
C. An increase in quality costs and a decrease in ordering costs.
D. An increase in stockout costs and a decrease in carrying costs.
Answer: D
Explanation:
In this situation, the company will be receiving fewer materials at any point in time, increasing the likelihood of stockout and thereby resulting in an increase in a reduction in the carrying cost. At the same time, the average inventory will be less, resulting in a reduction in the carrying cost.
Q269. A local area network LAN) is best described as a(n):
A. Computer system that connects computers of all sizes, workstations, terminals, and other
devices within a limited proximity
B. System to allow computer users to meet and share ideas and information.
C Electronic library containing millions of items of data that can be reviewed, retrieved, and
analyzed.
D Method to offer specialized software, hardware, and data-handling techniques that improve
effectiveness and reduce costs.
Answer: A
Explanation:
A LAN is a local distributed computer system, often housed within a single building. Computers, communication devices, and other equipment are linked by cable. Special software facilitates efficient data communication among the hardware devices.
Q270. One of the main reasons total quality management TOM) can be used as a strategic weapon is that:
A. The cumulative improvement from a company's 'QM efforts cannot readily be copied by competitors.
B. Introducing new products can lure customers away from competitors.
C. Reduced costs associated with better quality can support higher shareholder dividends.
D. TQM provides a comprehensive planning process for a business.
Answer: A
Explanation:
TON is a comprehensive approach to quality. It treats the pursuit of quality as a basic organizational function that is as important as production or marketing. Because 'QM affects every, aspect of the organization's activities, it permeates the organizational culture. Thus, the cumulative effect of TQM’s continuous improvement process can attract and hold customers and cannot be duplicated by competitors.