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To be eligible for the IIA-CIA-Part3 exam, candidates must have completed the first two parts of the Certified Internal Auditor (CIA) exam. These exams cover the foundations of internal auditing and internal audit practice. The Part 3 exam builds on this foundation by testing the candidate's knowledge of business concepts, such as economics, finance, and accounting. IIA-CIA-Part3 Exam is also designed to test the candidate's ability to apply this knowledge to real-world scenarios.

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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) certification exam is designed to test the knowledge and skills of internal auditors in the area of business knowledge. Internal Audit Function certification is offered by the Institute of Internal Auditors (IIA) and is recognized internationally as a benchmark for excellence in internal auditing. IIA-CIA-Part3 Exam covers a wide range of topics such as financial management, marketing, operations management, and strategic planning.

IIA Internal Audit Function Sample Questions (Q561-Q566):

NEW QUESTION # 561
The sales manager for a builder of custom yachts developed the following conditional table for annual production and sales:

According to the table, how many yachts should be built?

A. 0
B. 1
C. 2
D. 3

Answer: A

Explanation:
To achieve the maximum expected profit. 30 yachts should be built. For each level of production, multiply the probability of demand by the expected profit. The computation for the maximum is: 0.1 (-US $10) + 0.2($10) + 0.5($30) + 0.2($30) = US $22.

NEW QUESTION # 562
With regard to project management, which of the following statements about project crashing is true?

A. It is a compression technique in which resources are added to the project.
B. It is an optimization technique where activities are performed in parallel rather than sequentially.
C. It leads to an increase in risk and often results in rework.
D. It involves a revaluation of project requirements and/or scope.

Answer: A

Explanation:
Comprehensive and Detailed In-Depth Explanation:
Project crashing is a schedule compression technique used in project management to shorten the project duration without altering the project scope. This is achieved by allocating additional resources to critical path activities, thereby reducing their completion time. While this approach can lead to increased costs due to the added resources, it helps in meeting tight deadlines. It's important to note that crashing focuses on accelerating project timelines by adding resources, not by changing the sequence of activities (as in fast-tracking) or by reassessing project requirements. However, project crashing can increase risks and may lead to rework if not managed carefully.

NEW QUESTION # 563
Which of me following responsibilities would ordinary fall under the help desk function of an organization?

A. Management of infrastructure services including network management
B. End-to-end security architecture design
C. Maintenance service items such as production support
D. Physical hosting of mainframes and distributed servers

Answer: D

NEW QUESTION # 564
The required adjusting entry at December 31 related to salaries and wages is

A. Income summary US $1,700 Salaries & wages payable US $1,700
B. Salaries & wages payable US $1,700 Salaries & wages expense US $1,700
C. Salaries & wages expense US $1,700 Income summary US $1,700
D. Salaries & wages expense US $1,700 Salaries & wages payable US $1,700

Answer: D

Explanation:
An expense incurred but not yet paid is an accrued expense. The adjusting entry to record an accrued expense of US $1,700 for unpaid salaries and wages is to debit an expense account and credit a liability account.

NEW QUESTION # 565
Which of the following principles is shared by both hierarchical and open organizational structures?
1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions
2. A supervisor's span of control should not exceed seven subordinates
3. Responsibility should be accompanied by adequate authority
4. Employees at all levels should be empowered to make decisions.

A. 1 and 3 only.
B. 2 and 3 only
C. 3 and 4 only.
D. 1 and 4 only.

Answer: A

NEW QUESTION # 566
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