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IIA-CIA-Part3 exam covers a wide range of topics, including financial management, operations management, risk management, and governance. It tests the candidate's knowledge of business processes, financial statements, internal controls, and risk management frameworks. IIA-CIA-Part3 exam is designed to ensure that internal auditors have a deep understanding of the business environment and can effectively assess the risks and controls within an organization.
To be eligible to take the IIA-CIA-Part3 exam, candidates must have completed the two other exams required for the CIA certification: IIA-CIA-Part1 (Essentials of Internal Auditing) and IIA-CIA-Part2 (Practice of Internal Auditing). Candidates must also have at least 24 months of internal auditing experience or equivalent education or other relevant experience. IIA-CIA-Part3 Exam consists of 100 multiple-choice questions that must be completed within a 2.5-hour time frame.
IIA-CIA-Part3 exam is an essential step for internal auditors who want to advance their careers and increase their value to their organizations. Passing IIA-CIA-Part3 exam demonstrates that the candidate has the necessary knowledge and skills to provide valuable insights into the business operations of their organization. It also shows that they understand the importance of risk management and can apply their knowledge to identify and mitigate risks.
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Electronic commerce e-commerce) is generally defined as "conducting commercial activities over the Internet." These commercial activities can be all but which of the following?
A. Consumer-to-business.
B. Business-to-employee
C. Business-to-business
D. Business-to-consumer
Answer: A
Explanation:
These commercial activities can be business-to-business B2B), business-to-consumer (B2C), and business-to-employee B2E). Consumer-to-business is not a commercial activity because it does not originate from a business, therefore, it is not considered part of e-commerce.
NEW QUESTION # 165
Which of the following statements is true regarding outsourced business processes?
A. Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.
B. Generally, independence is improved when the internal audit activity reviews outsourced business processes.
C. The system of internal controls may be better and more efficient when the business process is outsourced compared to internally sourced.
D. The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.
Answer: C
NEW QUESTION # 166
A customer, operating in isolated foreign market, has approached the head salesperson for Product Line I and offered to purchase 4.000 units of a special-order product over the next 12 months_ This product would be sold in the same as Product Line 1's other products except that the customer is hoping for a price break. Product Line 1's cost to purchase this product cost of sales) would be US $14.70. Product Line 1 has excess capacity, meaning that the rate or amount of the remaining operating costs would not change as a consequence of the purchase and sale of this special- order product. The minimum selling price for this special-order product would be:
A. US $17.30
B. US $30.20
C. US $27.50
D. US $15.00
Answer: D
Explanation:
Product Line I needs to cover its variable out-of-pocket costs as a minimum on this special-order product: therefore, any soiling pr1Sr ester than the variable cost will contribute towards profits. Thus, the minimum selling price of the special-order product is the variable cost divided by 1 minus the commission rate, or US$15 1$14.70 / 1.0 - 0.2)].
NEW QUESTION # 167
A vendor sells specialty inks on consignment to a manufacturer of colored paper at a price of US $200 per barrel. Payment is made to the vendor in the month the manufacturer uses the barrels in production. The vendor records revenues when the barrels are shipped and makes no adjusting entries to record unearned revenues until the December 31 closing of the books. At the end of July the manufacturer had 40 barrels of ink on consignment.
During August, the vendor consigned 50 barrels and received payment for 30 barrels. Another five barrels were returned to the vendor by the manufacturer for credit. At the end of August, what is the amount of unearned revenue contained in the vendor's accounts receivable from the manufacturer?
A. US $12,000
B. US $3,000
C. US $11,000
D. US $4,000
Answer: C
Explanation:
Under a consignment arrangement the consignor ships merchandise to the consignee who acts as agent for the consignor in selling the goods. The goods are in the physical possession of the consignee but remain the property of the consignor and are included in the consignor's inventory. Revenue and the related cost of goods sold from these consigned goods should only be recognized by the consignor when the merchandise is sold and delivered to the final customer. Accordingly, recognition occurs when notification is received that the consignee has sold the goods. Only then are the recognition criteria for a sale of goods satisfied: The enterprise has transferred the significant risks and rewards of ownership, the enterprise has neither continuing managerial involvement to an extent associated with ownership nor effective control over the goods, the amount can be reliably measured, it is probable that the economic benefits will flow to the enterprise, and transactional costs can be reliably measured. In this consignment arrangement. 30 barrels have been paid for, so the revenue is recognized for these barrels. The five barrels returned are not included in unearned revenue because they constitute a return of consigned goods. Accordingly, the amount of inappropriately recognized revenue is US $11,000 [(40 consigned + 50 consigned - 30 paid for- 5 returns) x $200].
NEW QUESTION # 168
Using absorption costing, fixed manufacturing overhead costs are best described as:
A. Direct period costs.
B. Indirect product costs.
C. Direct product costs.
D. Indirect period costs.
Answer: B
Explanation:
Using absorption costing, fixed manufacturing overhead is included in inventoriable product) costs. Fixed manufacturing overhead costs are indirect costs because they cannot be directly traced to specific units produced.
NEW QUESTION # 169
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