Free PDF Quiz IIA - IIA-CIA-Part3 - Accurate Internal Audit Function Free Exam

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IIA Internal Audit Function Sample Questions (Q77-Q82):

NEW QUESTION # 77
Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

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

Answer: C

NEW QUESTION # 78
What would be the effect of a lower tax rate on the ending balance of ordinary shares and on dividends said for the year?

A. Option B
B. Option D
C. Option C
D. Option A

Answer: C

Explanation:
The balance in the ordinary shares account represents share capital i.e. capital contributed by owners, not earnings retained in the business. It is not affected by a change in tax ate. I ./id. ends will increase. not however, because they are a constant percentage of after-tax earnings. An entity reports the following account balances at year-end:

The opening balance of ordinary shares was US $100,000. The opening balance of ordinary earning was US $82,500. The entity had 10,000 ordinary shares outstanding all year. No dividends were paid during the year.

NEW QUESTION # 79
An internal audit activity is piloting a data analytics model, which aims to identify anomalies in payments to vendors and potential fraud indicators Which of the following would be the most appropriate criteria for assessing the success of the piloted model?

A. The development and maintenance costs associated with the model
B. The percentage of cases flagged by the model and confirmed as positives.
C. The feedback of auditors involved with developing the model
D. The number of criminal investigations initiated based on the outcomes of the model

Answer: A

NEW QUESTION # 80
A German importer of English clothing has contracted to pay an amount fixed in British pounds 3 months from now. lithe importer worries that the euro may depreciate sharply against the British pound in the interim, it would be well advised to:

A. Buy pounds in the forward exchange market.
B. Buy euros in the futures market.
C. Sell euros in the futures market.
D. Sell pounds in the forward exchange market.

Answer: A

Explanation:
The importer should buy pounds now. If the euro depreciates against the pound in the next 90 days, the gain on the forward exchange contract would offset the loss from having to pay more euros to satisfy the Ii ability.

NEW QUESTION # 81
Omen Company is a manufacturer of men's shirts. It distributes weekly sales reports to each sales manager. The quantity 2R5 appeared in the quantity sold column for one of the items on the weekly sales report for one of the sales managers. The most likely explanation for what has occurred is that the:

A. Printer has malfunctioned and the "R" should have been a decimal point.
B. Program did not contain a data checking routine for input data.
C. Computer has malfunctioned during execution.
D. Output quantity has been stated in hexadecimal numbers.

Answer: B

Explanation:
The probable explanation for reporting a quantity using a character other than a digit is that the data were incorrectly encoded and the computer program did not perform a field check, which would have detected the error. A field check tests whether a field consists of the proper characters, whether JI alphabetic, numeric, special, or combinations thereof.

NEW QUESTION # 82
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