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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Certification Exam is an essential qualification for internal auditors seeking to expand their knowledge and skills in understanding business operations and risks. Offered by the Institute of Internal Auditors (IIA), this certification exam tests candidates on their understanding of essential business concepts, including strategic planning, financial management, marketing, and human resources.

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IIA-CIA-Part3 Certification Exam consists of 100 multiple-choice questions that must be answered within two and a half hours. Candidates who pass the exam are awarded the Certified Internal Auditor (CIA) designation, which is recognized by employers and industry organizations worldwide. Internal Audit Function certification program is designed to help internal auditors develop the skills and knowledge necessary to provide effective and efficient audit services to their organizations.

IIA Internal Audit Function Sample Questions (Q774-Q779):

NEW QUESTION # 774
Which of the following statements best describes the current state of data privacy regulation?

A. Because the concept of privacy is different around the world, data privacy is relatively unregulated
B. The concept of data privacy is well established, privacy regulations are mature, and minimal regulatory changes are expected
C. Most privacy laws are prescriptive and focused on organizations' privacy rights
D. Regulations related to privacy are evolving and complex, and the number of laws is increasing

Answer: D

Explanation:
Reference: IIA Business Knowledge for Internal Auditing, Data Privacy and Regulation section.

NEW QUESTION # 775
On the year-end financial statements, the company will report cost of goods sold of:

A. US $670.000
B. US $620,000
C. US $900,000
D. US $440,000

Answer: D

Explanation:
Cost of goods sold equals begin rag inventory. plus purchases. m us ending inventory.
Hence cost of goods sold is US $440,000$ 140.000 + $530.000 - $230,000).

NEW QUESTION # 776
As part of internal audit's risk assessment, a chief audit executive is determining certain factors as part of planning the areas to audit within an organization that makes silicon chips. Which of the following would be considered a subjective factor as part of the risk assessment?

A. The number of vendors able to meet the supply demand request from the organization
B. The length of time since the last audit of the organization's manufacturing facilities
C. The quality of the staff supervision of silicon chips produced by the organization
D. The asset value of the silicon chips that the organization did not produce because of a shortage in raw materials

Answer: C

Explanation:
Subjective factors are based on judgment or opinion, whereas objective factors rely on measurable data. The quality of staff supervision is a judgment-based assessment, making it subjective.
Options A, C, and D are measurable, quantitative factors and thus objective.
Reference:
IIA Practice Guide - Developing a Risk-Based Internal Audit Plan.

NEW QUESTION # 777
An organization with an annual demand of 25.000 units correctly computes its economic order quantity to be 1,000 units Its safety stock is 300 units and the lead time is two days If there are 250 production days in a year what is the reorder point1?

A. 500 units.
B. 200 units.
C. 1,000 units.
D. 300 units.

Answer: A

NEW QUESTION # 778
Which of the following is not an appropriate time series forecasting technique?

A. Least squares.
B. Moving averages.
C. Exponential smoothing.
D. The Delphi technique.

Answer: D

Explanation:
The Delphi technique is an approach in which the manager solicits opinions on a problem from experts, summarizes the opinions, and feeds the summaries back to the experts (without revealing any of the participants to each other). The process is reiterated until the opinions converge on an optimal solution. Thus, the Delphi technique is a qualitative, not a quantitative, method.

NEW QUESTION # 779
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