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| Section | Objectives |
|---|
| Topic 1: Business Acumen and Global Business Environment | - Organizational structure and business processes - Business strategies and objectives alignment - Global business environment and market influences
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| Topic 2: Information Technology and Business Systems | - Information systems and data governance - IT controls and cybersecurity fundamentals - System development lifecycle concepts
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| Topic 3: Information Security and Business Continuity | - Business continuity and disaster recovery - Information security management principles - Data protection and privacy considerations
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| Topic 4: Risk Management and Regulatory Environment | - Enterprise risk management (ERM) principles - Internal controls and governance concepts - Compliance and regulatory frameworks
|
| Topic 5: Financial Management | - Managerial accounting concepts - Budgeting and cost control - Financial statements and reporting basics
|
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Realistic IIA IIA-CIA-Part3 Exam Questions with Accurate Answers
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IIA Internal Audit Function Sample Questions (Q49-Q54):
NEW QUESTION # 49
Which of the following is not required when ISO 9000 standards are adopted?
- A. Consistent high quality products.
- B. Creation of an internal audit system.
- C. Organization of a quality management system.
- D. On-site inspections by a registrar.
Answer: A
Explanation:
ISO 9000 is a set of generic standards for establishing and maintaining a quality system within a company. The standards provide no basis for judging the quality of the end product.
The marketplace it will make this determination on its own. The objective of ISO 9000 standards is to ensure consistent quality.
NEW QUESTION # 50
In a traditional manufacturing operation, direct costs would normally include:
- A. Wood in a furniture factory.
- B. Electricity in an electronics plant.
- C. Commissions paid to sales personnel.
- D. Machine repairs in an automobile factory.
Answer: A
Explanation:
Direct costs are readily identifiable with and attributable to specific units of production. Wood is a raw material a direct cost) of furniture.
NEW QUESTION # 51
In light of increasing emission taxes in the European Union, a car manufacturer introduced a new middle-class hybrid vehicle specifically for the European market only.
Which of the following competitive strategies has the manufacturer used?
- A. Focus strategy
- B. Differentiation strategy.
- C. Reactive strategy.
- D. Cost leadership strategy.
Answer: A
NEW QUESTION # 52
Activity scheduling information for the installation of a new computer system is given below

The earliest completion time for the project is:
- A. B-E.
- B. A-C.
- 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) is the critical path.
NEW QUESTION # 53
A cost-benefit analysis would show that the manufacturing company would save
- A. US $81,000 by making the motors internally
- B. US $54,000 by purchasing the motors from the outside vendor
- C. US $96,000 by making the motors internally
- D. US $69,000 by purchasing the motors from the outside vendor
Answer: A
Explanation:
The relevant costs of making the motor are direct materials, direct labor, variable manufacturing overhead, rental costs of the special machinery, and rental costs of the new warehouse. The fixed manufacturing overhead and the costs of the current warehouse space are not relevant because they will be incurred regardless of whether the motor is made or bought. Buying the motor will cost US $630,000 30,000 x $21).
Making the motor will cost US $549,000 {[30,000 x $8 DM +$ 4 DL + $3 VOH)] +$54,000 + $45,000}. Hence, making the motor saves US $81,000 $630,000 - $549,000). A manufacturing company is considering a new product for the coming year, which is an electric motor the company can purchase from a reliable vendor for US $21.00 per unit. The alternative is t. manufacture the motor internally. The company has excess capacity to manufacture the 30,000 motors needed in the coming year except for manufacturing space and special machinery. The machinery can be leased for US $45,000 annually. Finished goods warehouse space adjoining the main manufacturing facility, leased for US $39,000 annually, can be converted and used to manufacture the motors. Additional offsite space can be leased at an annual cost of US $54,000 to replace the finished goods warehouse. The estimated unit costs for manufacturing the motors internally, exclusive the leasing costs itemized above, are:

NEW QUESTION # 54
......
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