Latest [Nov 25, 2024] Real IIA IIA-CIA-Part3 Exam Dumps Questions
IIA-CIA-Part3 Dumps To Pass Certified Internal Exam in One Day (Updated 344 Questions)
NEW QUESTION # 48
In an effort to increase business efficiencies and improve customer service offered to its major trading partners, management of a manufacturing and distribution company established a secure network, which provides a secure channel for electronic data interchange between the company and its partners. Which of the following network types is illustrated by this scenario?
- A. A value-added network.
- B. A wide area network.
- C. A metropolitan area network.
- D. A local area network.
Answer: A
NEW QUESTION # 49
Which of the following best describes depreciation?
- A. It is a process of assets valuation.
- B. It is a process of accumulating adequate funds to replace assets.
- C. It is a process of measuring decline in the value of assets because of obsolescence
- D. It is a process of allocating cost of assets between periods.
Answer: D
NEW QUESTION # 50
Which of the following procedures would an entity most likely include in its disaster recovery plan?
- A. Maintain a Trojan horse program to prevent illicit activity.
- B. Store duplicate copies of files in a location away from the computer center.
- C. Develop an auxiliary power supply to provide uninterrupted electricity.
- D. Convert all data from EDI format to an internal company format.
Answer: B
Explanation:
Off-site storage of duplicate copies of critical files protects them from a fire or other disaster at the computing facility. The procedure is part of an overall disaster recovery plan. An automobile and personal property insurer has decentralized its information processing to the extent that headquarters has less processing capacity than any of its regional processing centers. These centers are responsible for initiating policies, communicating with policyholders, and adjusting claims. The company uses leased lines from a national telecommunications company. Initially, the company thought there would be little need for interregion communication, but that has not been the case. The company underestimated the number of customers that would move between regions and the number of customers with claims arising from accidents outside their regions. The company has a regional center in an earthquake-prone area and is planning how to continue processing if that center, or any other single center, were unable to perform its processing.
NEW QUESTION # 51
If Bandit Co. uses the <List A> approach to estimate bad debt expense, the estimated bad debt expense will be <List Be.
- A. Option C
- B. Option A
- C. Option B
- D. Option D
Answer: A
Explanation:
Using the income statement approach, the bad debt expense is determined using a percentage of total credit sales. Thus, bad debt expense is US $20,000$400,000 credit sales x 5% estimated bad debt rate).
NEW QUESTION # 52
Which line segment identifies the quantity of safety stock maintained?
- A. BC.
- B. AE.
- C. A
- D. AB.
Answer: B
Explanation:
Quantities of inventory are shown along they axis. Safety stock is represented by the line
AE.
The diagram presented represents the economic circler quantity ECQ) model.
NEW QUESTION # 53
Based solely on the cost figures presented, the cost of developing the computer application will be:
- A. More than acquiring the purchased software package by US $3,550.
- B. Less than acquiring the purchased software package by US $500.
- C. Less than acquiring the purchased software package by US $3,500.
- D. More than acquiring the purchased software package by US $1,550.
Answer: C
Explanation:
Development cost equals the cost of the outside contractor plus the costs for hardware and supplies. Computer charges are transfer prices and do not require additional expenditures, given idle capacity. The relevant cost of supplies is US $300 $500 -$200 cost if the software are is purchased). The contractor's use of an otherwise idle office is not relevant. Thus, the relevant cost of development is US $25,500 [[1 .000 hours x $22 hourly cost of the contractor) * $3,200 hardware purchases * $300 incremental cost of supplies]. This amount is US $3,500 less than the US $29,000 cost of purchase. A systems analyst's work on the new software is not relevant. It is part of the regular workload.
Topic 6, Volume F
NEW QUESTION # 54
An example of secured short-term financing is:
- A. Trade credit
- B. A warehouse receipt
- C. Commercial paper.
- D. A revolving credit agreement.
Answer: B
Explanation:
A document of title is usually issued by a bailee covering goods in the bailee's possession or care UCC 1-201). It represents ownership of the goods and is ordinarily needed to obtain the goods from the bailee. The two major types of documents of title are bills of lading issued by carriers) and warehouse receipts_ A warehouse receipt is issued by a person engaged in the business of storing goods for hire. Security for short-term inventory financing can be arranged if the debtor places its inventory under the control of the lender or its agent e.g., a public warehouse), and the lender holds the warehouse receipts.
NEW QUESTION # 55
Which of the following is an encryption feature that can be used to authenticate the originator of a document and ensure that the message is intact and has not been tampered with?
- A. Default settings.
- B. Perimeter switch.
- C. Digital signatures.
- D. Heuristic terminal.
Answer: C
Explanation:
Businesses and others require that documents sent over the Internet be authentic. To authenticate a document, a company or other user may transmit a complete plaintext document along with an encrypted portion of the same document or another standard text that serves as a digital signature_ If the plaintext document is tampered with, the two will not match.
NEW QUESTION # 56
An entity is subject to warranty claims. A reliable estimate is that between US $1 million and US $3 million will probably be paid out. No estimate of loss within this range is more likely than any other. The entity should:
- A. Disclose only a possible loss.
- B. Recognize a provision of US $1 million to US $3 million depending on the applicable national accounting standards.
- C. Make no journal entry at this time.
- D. Defer a provision of US $1 million to US $3 million depending on the applicable national accounting standards.
Answer: B
Explanation:
A provision is a liability of uncertain timing or amount. Recognition of provisions is appropriate when the entity has a legal or constructive present obligation results from a past event called an obligating event), it is probable that an outflow of economic benefits will be necessary to settle the obligation, and its amount can be reliably estimated. Thus, a provision should be recognized. Moreover, the amount recognized should be the best estimate of the expenditure required to settle the obligation. However, the amount within the reliable estimate of the range of the obligation that will be recognized will vary from country to country.
NEW QUESTION # 57
Before authorizing payment of an EDI invoice, the computer automatically compares the invoice with the purchase order and receiving report data. When the system was being developed, the auditor reviewed the payment authorization program and made recommendations. Which one of the following was most likely recommended by the auditor for the situation in which the quantity invoiced is greater than the quantity received?
- A. Prepare an exception report.
- B. Pay the amount billed and adjust the inventory for the difference.
- C. Return the invoice to the vendor.
- D. Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.
Answer: A
Explanation:
An exception report error listing) should be issued so that company personnel can investigate the discrepancy, determine its cause, and take appropriate corrective action.
NEW QUESTION # 58
In the organization of the IT function, the most important separation of duties is:
- A. Assuring that those responsible for programming the system do not have access to data processing operations.
- B. Using different programming personnel to maintain utility} programs from those who maintain the application programs.
- C. Having a separate information officer at the top level of the organization outside of the accounting function.
- D. Not allowing the data librarian to assist in data processing operations.
Answer: A
Explanation:
Separation of duties is a general control that is vital in a computerized environment Some separation of duties common in non-computerized environments may not be feasible in a computer environment. However, certain tasks should not be combined. Systems analysts and programmers should be separate from computer operators. Both programmers and analysts may be able to modify programs, files, and controls and should therefore have no access to those programs nor to computer equipment Operators should not be assigned programming duties or responsibility for systems design and should have no opportunity to make changes in programs and systems.
NEW QUESTION # 59
The allocation of general overhead costs to operating departments can be least justified in determining:
- A. Income of a product or functional unit.
- B. Costs for making management's decisions.
- C. Costs for the federal government's cost-plus contracts
- D. Income tax payable.
Answer: B
Explanation:
In the short run management decisions are made in reference to incremental costs without regard to fixed overhead costs because fixed overhead cannot be changed in the short run. Thus, the emphasis in the short run should be on controllable costs. For example, service department costs allocated as a part of overhead may not be controllable in the short run.
NEW QUESTION # 60
Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?
- A. PKI's public accessibility allows it to be used readily for e-commerce.
- B. The public key is authenticated against reliable third-party identification.
- C. PKI uses an independent administrator to manage the public key.
- D. The private key uniquely authenticates each party to a transaction.
Answer: D
NEW QUESTION # 61
To calculate net sales, List Ac must be List Be cash receipts from customers.
- A. Option B
- B. Option A
- C. Option D
- D. Option C
Answer: B
Explanation:
To convert from the cash basis cash receipts) to the accrual basis net sales the increase in net accounts receivable must be added to cash receipts from customers.
NEW QUESTION # 62
A remote location contains a data center with hardware available to support critical production systems as required in the recovery plan IT personnel periodically test and update systems at the data center. This is an example of which of the following recovery solutions?
- A. Warm recovery plan
- B. Cold recovery plan
- C. Tested recovery plan
- D. Critical recovery plan
Answer: A
NEW QUESTION # 63
......
IIA-CIA-Part3 Exam Brain Dumps - Study Notes and Theory: https://www.vcedumps.com/IIA-CIA-Part3-examcollection.html
100% Guaranteed Results IIA-CIA-Part3 Unlimited 344 Questions: https://drive.google.com/open?id=1fjDlvaSaq9i8Gm_YRqSLh7v1VE6Ay8gC
