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IIA-CIA-Part3 exam is a comprehensive test that evaluates the candidate's ability to apply their knowledge of business concepts to the practice of internal auditing. IIA-CIA-Part3 Exam covers topics such as risk management, governance, ethics, and compliance. Candidates are expected to demonstrate their understanding of these concepts and how they relate to internal auditing processes.

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To be eligible to take the IIA-CIA-Part3 Certification Exam, candidates must have completed the IIA-CIA-Part1 and IIA-CIA-Part2 exams, and have at least 24 months of internal auditing experience. IIA-CIA-Part3 exam is administered by the Institute of Internal Auditors (IIA) and is available in multiple languages. The IIA also offers a range of study materials, including textbooks, practice exams, and online courses, to help candidates prepare for the exam. With the IIA-CIA-Part3 Certification Exam, internal auditors can demonstrate their expertise in business knowledge and gain a competitive edge in their careers.

IIA Internal Audit Function Sample Questions (Q139-Q144):

NEW QUESTION # 139
The following account balances represent the December 31 balance sheet of an entity. The quick ratio for this year is:

Answer: D

Explanation:
The acid test quick) ratio equals quick assets cash, financial assets held for trading, and accounts receivable) divided by current liabilities. Quick assets total US $206,500 $27,500 cash + $64,000 financial assets held for trading + $115,000 net accounts receivable). Given current liabilities of US $213,500 $67,000 accounts payable + $54,000 current notes payable + $70,000 income taxes payable + $22,500 other current liabilities), the quick ratio is 0.967 US $206,500 + $213,500).


NEW QUESTION # 140
An employee frequently uses a personal smart device to send and receive work-related emails. Which of the following controls would be most effective to mitigate security risks related to these transmissions?

Answer: C


NEW QUESTION # 141
Which of the following facilitates data extraction from an application?

Answer: D


NEW QUESTION # 142
Refer to the exhibit.

A company's financial balance sheet is presented below:
The company has net working capital of:

Answer: B


NEW QUESTION # 143
How can the concept of relevant cost help management with behavioral analyses?

Answer: A

Explanation:
Relevant cost refers to costs that will change depending on a specific business decision. It is crucial for decision-making as it helps management assess the financial impact of alternatives.
* Relevant costs focus on future costs that differ between decision alternatives.
* They help management analyze how different choices impact profitability.
* This supports decision-making in areas such as pricing, outsourcing, and product discontinuation.
* A. It explains the assumption that both costs and revenues are linear through the relevant range # Incorrect. While linear cost behavior is often assumed, it is not the primary purpose of relevant cost analysis.
* B. It enables management to calculate a minimum number of units to produce and sell without having to incur a loss # Incorrect. This describes break-even analysis, not relevant cost analysis.
* C. It enables management to predict how costs such as the depreciation of equipment will be affected by a change in business decisions # Incorrect. Depreciation is a sunk cost and is not considered relevant for decision-making.
* The IIA's Practice Guide: Financial Decision-Making and Internal Audit's Role outlines how relevant cost analysis aids business strategy.
* International Professional Practices Framework (IPPF) Standard 2120 states that internal auditors should assess management's cost-analysis techniques.
* Managerial Accounting Concepts (by IMA and COSO) emphasize relevant costs in strategic decision-making.
Why Option D is Correct?Explanation of the Other Options:IIA References & Best Practices:Thus, the correct answer is D. It enables management to make business decisions, as it explains the cost that will be incurred for a given course of action.


NEW QUESTION # 144
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