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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) certification exam is an important certification for internal auditors who want to demonstrate their knowledge and skills in the area of business knowledge. Business Knowledge for Internal Auditing certification is recognized globally and can help internal auditors advance their careers and increase their earning potential. If you are an internal auditor who wants to take your career to the next level, the IIA-CIA-Part3 Certification Exam is definitely worth considering.
IIA-CIA-Part3 Dumps Collection & Latest IIA-CIA-Part3 Test SimulatorThe Itexamguide IIA-CIA-Part3 Practice Questions are designed and verified by experienced and renowned IIA-CIA-Part3 exam trainers. They work collectively and strive hard to ensure the top quality of IIA-CIA-Part3 exam practice questions all the time. The IIA-CIA-Part3 Exam Questions are real, updated, and error-free that helps you in IIA IIA-CIA-Part3 exam preparation and boost your confidence to crack the upcoming IIA-CIA-Part3 exam easily. IIA Business Knowledge for Internal Auditing Sample Questions (Q285-Q290):NEW QUESTION # 285
If implementing EDI with suppliers permitted more frequent orders and more frequent communication about them, a company could be more effective by using EDI to:
A. Ensure that it always maintained a 25-day buffer stock.
B. Track materials through production to completed orders.
C. Reduce costs by reducing raw materials inventory.
D. Schedule production to reduce the number of setups required.
Answer: C
Explanation:
A well-managed company seeks to minimize the sum of the costs of holding and ordering inventory. An EDI system reduces the costs of ordering, thereby permitting the company to order more frequently. More frequent ordering reduces inventory and the associated holding costs.
NEW QUESTION # 286
An entity obtained a short-term bank loan of US $250,000 at an annual interest rate of 6%. As a condition of the loan, the entity is required to maintain a compensating balance of US $50,000 in its checking account. The entity's checking account earns interest at an annual rate of 2 %. Ordinarily, the entity maintains a balance of US $25,000 in its checking
account for transaction purposes. What is the effective interest rate of the loan?
A. 5.80% D 6.66%
B. 7.00%
C. 6.44%
Answer: C
Explanation:
The US $50,000 compensating balance requirement is partially satisfied by the entity's practice of maintaining a US $25,000 balance for transaction purposes. Thus, only US $25,000 of the loan will not be available for current use, leaving US $225,000 of the loan usable. At 6% interest, the US $250,000 loan would require an interest payment of US $15,000 per year. This is partially offset by the 2% interest earned on the US $25,000 incremental balance, or US $500. Subtracting the US $500 interest earned from the US $15,000 of expense results in net interest expense of US $14,500 for the use of US $225.000 in funds. Dividing US $14,500 by US $225,000 produces an effective interest rate of 6.44%.
NEW QUESTION # 287
An internal auditor is using data analytics to focus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the data. Which of the following statements is true regarding this scenario?
A. The auditor is analyzing the data in preparation for communicating the results.
B. The auditor is normalizing data in preparation for analyzing it.
C. The auditor is cleaning the data in preparation for determining which processes may be involved.
D. The auditor is reviewing the data prior to defining the question.
Answer: B
NEW QUESTION # 288
Which of the following is the most appropriate way lo record each partner's initial Investment in a partnership?
A. At the value agreed upon by the partners.
B. At the original cost.
C. At book value.
D. At fair value
Answer: B
NEW QUESTION # 289
Change control typically includes procedures for separate libraries for production programs and for test versions of programs. The reason for this practice is to:
A. Segregate incompatible duties.
B. Permit unrestricted a access to programs.
C. Promote efficiency of system development
D. Facilitate user input on proposed changes.
Answer: A
Explanation:
Separating production and test versions of programs facilitates restricting access to production programs to the individuals, such as computer operators, who need access. The effect is to separate the incompatible functions of operators and programmers.
NEW QUESTION # 290
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