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IIA Business Knowledge for Internal Auditing Sample Questions (Q210-Q215):

NEW QUESTION # 210
To keep costs at a minimum and decrease the completion time by 1-1/2 days, Networks, Inc. should crash activity(ies):

A. AD
B. AD and AB
C. AB and CE
D. DE

Answer: B

Explanation:
The critical (longest) path is A-D-E, which has an expected time of 13 days (5.5 + 7.5). However, to decrease the project's completion time by 1.5 days, paths A-B-C-E (4.5 + 1.0
+ 6.5 = 12 days) and A-B-D-E (4.5 + .5 + 7.5= 12.5 days) as well as A-D-E must also be shortened. Hence, A-D-E must be reduced by 1.5 days. A-B-C-E by .5 day, and A-B-D-E by 1.0 day. The only way to decrease A-D-E by 1.5 days is to crash activity AD (5.5 expected time - 4.0 crash time = 1.5 days). Crashing DE results in a 1.0-day saving (7.56.5) only. Crashing AB is the efficient way to reduce both A-B-C-E and A-B-D-E by the desired amount of time because it is part of both paths. The incremental cost of crashing AB is US $1,000 (US $4,000 crash cost - US $3,000 normal cost) to shorten the completion time by 1.0 day (4.5 - 3.5). The alternatives for decreasing both A-B-C-E and A-B-D-E are more costly.

NEW QUESTION # 211
Which of the following are critical risk and control issues that an internal auditor must address?
I Rapid technology changes
II Maintenance of transaction integrity
III. Website content review and approval
IV.
Changes to organizational structures

A. I and III only.
B. I, II, Ill, and IV.
C. II and III only
D. I and II only.

Answer: B

Explanation:
Some of the more critical risk and control issues to be addressed by the internal auditor are
General project management risks
Specific security threats, such as denial of service, physical attacks, viruses, identity theft, and unauthorized access or disclosure of data
Maintenance of transaction integrity under a complex network of links to legacy systems and data warehouses
Website content review and approval when there are frequent changes and sophisticated customer features and capabilities that offer around-the-clock service
Rapid technology changes
Legal issues, such as increasing regulations throughout the world to protect individual privacy, enforceability of contracts outside of the organization's country, and tax and accounting issues Changes to surrounding business processes and organizational structures

NEW QUESTION # 212
An entity is currently being sued by a customer. A reliable estimate can be made of the costs that would result from a ruling unfavorable to the entity, and the amount involved is material. The entity's managers, lawyers, and auditors agree that the likelihood of an unfavorable ruling is remote. This contingent liability:

A. Need not be disclosed.
B. Should be disclosed by an appropriation of retained earnings.
C. Should be disclosed in a note.
D. Should be disclosed as a parenthetical comment in the balance sheet.

Answer: A

Explanation:
A contingent liability includes a present obligation for which an outflow of resources embodying economic benefits is not probable. A contingent liability is not recognized but is disclosed unless the possibility of the outflow is remote.

NEW QUESTION # 213
How is the letter x in the standard regression equation best described?

A. Independent variable.
B. Coefficient of determination.
C. Y intercept.
D. Dependent variable.

Answer: A

Explanation:
The letter x in the standard regression equation is the independent variable. For example, in a regression to determine the total cost of production, x equals units produced.

NEW QUESTION # 214
Which of the following costs would be incurred in an inventory stockout?

A. Lost sales, lost customers, and safety stock.
B. Lost sales, safety stock, and backorder.
C. Lost sales, lost customers, and backorder.
D. Lost customers, safety stock, and backorder.

Answer: C

NEW QUESTION # 215
......

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Valid IIA-CIA-Part3 Test Pdf, Online IIA-CIA-Part3 Test

Pass Guaranteed Pass-Sure IIA - IIA-CIA-Part3 - Valid Business Knowledge for Internal Auditing Test Pdf

IIA Business Knowledge for Internal Auditing Sample Questions (Q210-Q215):

Pass Guaranteed Quiz 2025 High Pass-Rate IIA Valid IIA-CIA-Part3 Test Pdf

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