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[General] IIA-CIA-Part3 real exam questions, IIA-CIA-Part3 test dumps vce pdf

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【General】 IIA-CIA-Part3 real exam questions, IIA-CIA-Part3 test dumps vce pdf

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IIA Business Knowledge for Internal Auditing Sample Questions (Q228-Q233):NEW QUESTION # 228
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 D
  • D. Option B
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 # 229
An internal auditor reviewed Finance Department records to obtain a list of current vendor addresses The auditor then compared the vendor addresses to a record of employee addresses maintained by the Payroll Department Which of the following types of data analysis did the auditor perform?
  • A. Duplicate testing.
  • B. Classification
  • C. Gap analysis
  • D. Joining data sources
Answer: B

NEW QUESTION # 230
Which of the following performance measures would be appropriate for evaluating an
investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?
  • A. A flexible budget.
  • B. Variance analysis.
  • C. A contribution margin income statement by segment.
  • D. Residual income.
Answer: D

NEW QUESTION # 231
An organization that soils products to a foreign subsidiary wants to charge a price that wilt decrease import tariffs. Which of the following is the best course of action for the organization?
  • A. Decrease the transfer price
  • B. Increase the transfer price
  • C. Charge at the arm's length price
  • D. Charge at the optimal transfer price
Answer: A

NEW QUESTION # 232
In Year 2, the entity had cash provided by operations of:
  • A. US $244,000
  • B. US $344,000
  • C. US $219,000
  • D. US $469,000
Answer: C
Explanation:
Cash provided by operations equals profit, plus depreciation, minus the increase in accounts receivable, minus the decrease in accounts payable. The cash provided is US $219,000 [$294,000 + $50,000 -$300,000 - $200,000) -$275,000 - $250,000)]. An increase in receivables is a noncash component of profit. A decrease in accounts payable is added when adjusting cost of goods sold to reflect cash paid to suppliers. Thus, it is subtracted when adjusting profit to arrive at cash provided by operations. An entity has the following statements:


NEW QUESTION # 233
......
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