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IIA-CIA-Part3-3P Exam Dumps - CIA Exam Part Three: Business Knowledge for Internal Auditing

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Question # 9

Which of the following statements is true regarding the "management-by-objectives" method?

A.

Management by objectives is most helpful in organizations that nave rapid changes.

B.

Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.

C.

Management by objectives helps organizations to keep employees motivated.

D.

Management by objectives helps organizations to distinguish clearly strategic goals from operational goals

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Question # 10

According to MA guidance, which of the following would indicate poor change management control?

1) Low change success rate

2) Occasional planned outages

3) Low number of emergency changes.

4) Instances of unauthorized changes

A.

1 and 3

B.

1 and 4

C.

2 and 3

D.

2 and 4

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Question # 11

Which of the following statements is true regarding change management?

A.

The degree of risk associated with a proposed change determines whether the change request requires authorization.

B.

Program changes generally are developed and tested in the production environment.

C.

Changes are only required by software programs.

D.

To protect the production environment, changes must be managed in a repeatable, defined, and predictable manner.

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Question # 12

Which of the following network types should an organization choose if it wants to allow access only to its own personnel?

A.

An extranet

B.

A local area network.

C.

An intranet

D.

The internet

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Question # 13

When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

A.

Direct product costs

B.

Indirect product costs

C.

Direct period costs

D.

Indirect period costs.

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Question # 14

An organization accumulated the following data for the prior fiscal year:

Value of Percentage of

Quarter

Output Produced

Cost X

1

$4,750,000

2.9

2

$4,700,000

3.0

3

$4,350,000

3.2

4

$4,000,000

3.5

Based on this data, which of the following describes the value of Cost X in relation to the value of Output Produced?

A.

Cost X is a variable cost.

B.

Cost X is a fixed cost.

C.

Cost X is a semi-fixed cost.

D.

Cost X and the value of Output Produced are unrelated.

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Question # 15

Refer to the exhibit.

If the profit margin of an organization decreases, and all else remains equal, which of the following describes

how the "Funds Needed" line in the graph below will shift?

A.

The "Funds Needed" line will remain pointed upward, but will become less steep.

B.

The "Funds Needed" line will remain pointed upward, but will become more steep.

C.

The "Funds Needed" line will point downward with a minimal slope.

D.

The "Funds Needed" line will point downward with an extreme slope.

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Question # 16

Which of the following strategies is most appropriate for an industry that is in decline?

A.

Invest in marketing.

B.

Invest in research and development.

C.

Control costs.

D.

Shift toward mass production.

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