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IIA-CIA-Part3 exam, also known as the Business Knowledge for Internal Auditing exam, is one of the three exams required to obtain the Certified Internal Auditor (CIA) designation. IIA-CIA-Part3 exam is designed to test the candidate's knowledge and understanding of business concepts, governance principles, risk management, and the role of internal auditing in an organization. The IIA-CIA-Part3 Exam consists of 100 multiple-choice questions and is four hours long.

IIA Internal Audit Function Sample Questions (Q765-Q770):

NEW QUESTION # 765
In Year 2, the entity had cash provided by operations of:

A. US $244,000
B. US $469,000
C. US $219,000
D. US $344,000

Answer: C

Explanation:
Cash provided by operations equals profit, plus depreciation, minus the increase in accounts receivable, minus the decrease in accounts payable. The cash provided is US $219,000 [$294,000 + $50,000 -$300,000 - $200,000) -$275,000 - $250,000)]. An increase in receivables is a noncash component of profit. A decrease in accounts payable is added when adjusting cost of goods sold to reflect cash paid to suppliers. Thus, it is subtracted when adjusting profit to arrive at cash provided by operations. An entity has the following statements:

NEW QUESTION # 766
A global business organization is selecting managers to post to various international (expatriate) assignments. In the screening process, which of the following traits would be required to make a manager a successful expatriate?
1.Superior technical competence.
2.Willingness to attempt to communicate in a foreign language.
3.Ability to empathize with other people.

A. 1 and 3 only
B. 1, 2, and 3
C. 2 and 3 only
D. 1 and 2 only

Answer: C

NEW QUESTION # 767
An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?

A. 100 days.
B. 110 days.
C. 90 days.
D. 26 days.

Answer: C

NEW QUESTION # 768
Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

A. Accounts receivable turnover, inventory turnover in days, and the current ratio.
B. Inventory turnover in days, the current ratio, and return on equity.
C. Times interest earned, return on assets, and inventory turnover.
D. Accounts receivable turnover, return on assets, and the current ratio.

Answer: A

NEW QUESTION # 769
Which of the following should the auditor recommend as the most economical point at which to correct input errors in an online system?

A. Entry of data into each record is completed.
B. Entry of data into each field of a record is completed.
C. Input data are balanced with computer-produced control totals.
D. Output data are balanced with computer-produced control totals and delivered to the user.

Answer: B

Explanation:
The most economical point at which to correct input errors is at the earliest time after the data has been entered into the system. The earliest point is the entry of data into each field of a record. Errors can easily be rectified because the proper information is already available.

NEW QUESTION # 770
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