Free IIA-CIA-Part3 Exam Dumps

Question 61

- (Exam Topic 1)
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

A. The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.
B. The organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.
C. The cost of rework, hidden by the current system, is 50 percent of the total cost of all services.
D. 50 percent of total organizational cost has been allocated on a volume basis.

Correct Answer:D

Question 62

- (Exam Topic 2)
An internal auditor was asked to review an equal equity partnership In one sampled transaction Partner A transferred equipment into the partnership with a self-declared value of $10,000 and Partner B contributed equipment with a self-declared value of $15 000 The capital accounts of each partner were subsequently credited with S12,500. Which of the following statements is true regarding this transaction?

A. The capital accounts of the partners should be increased by the original cost of the contnbuted equipment.
B. The capital accounts should be increased using a weighted average based on the current percentage of ownership
C. No action is needed as the capital account of each partner was increased by the correct amount
D. The capital accounts of the partners should be increased by the fair market value of their contribution

Correct Answer:C

Question 63

- (Exam Topic 2)
A rapidly expanding retail organization continues to be tightly controlled by its original small management team. Which of the following is a potential risk in this vertically centralized organization?

A. Lack of coordination among different business units.
B. Operational decisions are inconsistent with organizational goals.
C. Suboptimal decision-making.
D. Duplication of business activities.

Correct Answer:C

Question 64

- (Exam Topic 1)
A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:

A. Empathetic listening.
B. Reframing.
C. Reflective listening.
D. Dialogue.

Correct Answer:B

Question 65

- (Exam Topic 1)
Which of the following statements pertaining to a market skimming pricing strategy is not true?

A. The strategy is favored when unit costs fall with the increase in units produced.
B. The strategy is favored when buyers are relatively insensitive to price increases.
C. The strategy is favored when there is insufficient market capacity and competitors cannot increase market capacity.
D. The strategy is favored when high price is perceived as high quality.

Correct Answer:A