IIA-CIA-PART3 REGUALER UPDATE - IIA-CIA-PART3 VALID TEST FORMAT

IIA-CIA-Part3 Regualer Update - IIA-CIA-Part3 Valid Test Format

IIA-CIA-Part3 Regualer Update - IIA-CIA-Part3 Valid Test Format

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>> IIA-CIA-Part3 Regualer Update <<

IIA IIA-CIA-Part3 Valid Test Format | PDF IIA-CIA-Part3 VCE

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IIA Business Knowledge for Internal Auditing Sample Questions (Q34-Q39):

NEW QUESTION # 34
An assembly plant accumulates its variable and fixed manufacturing overhead costs in a
single cost pool, which is then applied to work in process using a single application base.
The assembly plant management wants to estimate the magnitude of the total manufacturing overhead costs for different volume levels of the application activity base using a flexible budget formula. If there is an increase in the application activity base that is within the relevant range of activity for the assembly plant, which one of the following relationships regarding variable and is true?

  • A. The variable cost per unit and the total fixed costs remain constant.
  • B. The variable cost per unit is constant, and the total fixed costs increase.
  • C. The variable cost per unit increases and the total fixed costs remain constant.
  • D. The variable cost per unit is constant, and the total fixed costs decrease.

Answer: A

Explanation:
Total variable cost changes when changes in the activity occur within the relevant range. The cost per unit for a variable cost is constant for all activity levels within the relevant range. Thus, if the activity volume increases within the relevant range, total variable costs will increase. A fixed cost does not change when volume changes occur in the activity level within the relevant range. If the activity volume increases within the relevant range, total fixed costs will remain unchanged.


NEW QUESTION # 35
Which of the following can be classified as debt investments?

  • A. Acquisition of government bonds.
  • B. Investments in the capital stock of a corporation
  • C. Contents of an investment portfolio,
  • D. Acquisition of common stock of a corporation

Answer: A


NEW QUESTION # 36
A company often revises its production processes. The changes may entail revisions to processing programs. Ensuring that changes have a minimal impact on processing and result in minimal risk to the system is a function of:

  • A. Problem-escalation procedures.
  • B. Problem tracking.
  • C. Change control.
  • D. Security administration.

Answer: C

Explanation:
Change control is the process of authorizing, developing, testing, and installing coded II changes so as to minimize the impact on processing and the risk to the system.


NEW QUESTION # 37
What is Lally's current tax expense for Year 2?

  • A. US $1,992,000
  • B. US $2,032,000
  • C. US $2,000,000
  • D. US $1,960,000

Answer: A

Explanation:
The US $5,000,000 of pre-tax profit is reduced by the US $100,000 of interest income not subject to tax. However, the rental income accrued in the previous year is taxable in Year
2. Thus, the profit subject to tax is US $4,980,000. Given a 40% rate, the current tax expense is US $1,992,000.
The following relates to Lally PLC for Year I and Year 2.
Year 2 Year 1 Profit before income taxes US $5,000,000 US $4,000,000 Interest income included above that was not subject to income taxes 100.000 100,000
Profit before income taxes in Year I included rent income of US $80.000 that was not subject to income tax until its receipt in Year 2.
Lally was subject to an effective income tax rate of 40% in Year 1 and Year 2.


NEW QUESTION # 38
When attempting to devise creative solutions to problems, team members initially should do which of the following?

  • A. Suspend assumptions and negative feedback
  • B. Discuss the details of all options presented
  • C. Weight suggestions based on the speaker's level of authority.
  • D. Provide documentation to support their positions

Answer: B


NEW QUESTION # 39
......

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