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The IIA-CIA-Part3 exam is a critical component of the certification process for internal auditors. It tests the candidate's understanding of business processes, financial management, and risk management frameworks. Passing this exam demonstrates that the candidate has the necessary knowledge and skills to provide valuable insights into the business operations of their organization. It is an essential step for internal auditors who want to advance their careers and increase their value to their organizations.
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IIA Business Knowledge for Internal Auditing Sample Questions (Q250-Q255):
NEW QUESTION # 250
Which of the following statements is true concerning internal control in an electronic data interchange (EDI) system?
- A. Preventive controls generally are more important than detective controls in EDI systems.
- B. Internal controls in EDI systems rarely permit control risk to be assessed at below the maximum.
- C. Control objectives for EDI systems generally are different from the objectives for other information systems.
- D. Internal controls related to the segregation of duties generally are the most important controls in EDI systems.
Answer: A
Explanation:
In general, preventive controls are more important than detective controls because the benefits typically outweigh the costs. In electronic processing, once a transaction is accepted, there is often little opportunity to apply detective controls. Thus, it is important to prevent errors or frauds before they happen.
NEW QUESTION # 251
An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the dat a. Which of me following statements is true regarding this scenario?
- A. The auditor is cleaning the data in preparation for determining which processes may tie involved
- B. The auditor is reviewing the data prior to defining the question
- C. The auditor is analyzing the data in preparation for communicating the results
- D. The auditor is normalizing data in preparation for analyzing it
Answer: D
NEW QUESTION # 252
Which of the following would not impair the objectivity of internal auditor?
- A. Management assurance on risks.
- B. Providing assurance that risks assessed are correctly evaluated.
- C. Setting the risk appetite.
- D. Implementing risk responses on behalf of management.
Answer: B
NEW QUESTION # 253
Which of the following is not a common feature of cumulative preferred stock?
- A. Priority over common stock with regard to earnings.
- B. Priority over common stock with regard to dividend payment.
- C. Priority over common stock with regard to assets.
- D. Priority over common stock with regard to dilution of shares.
Answer: D
NEW QUESTION # 254
When financial statements are being prepared, which of the following items requires that accountants estimate the effects of future conditions and events?
- A. The purchase price for an acquired building.
- B. The physical quantity of inventory.
- C. The price of a marketable security.
- D. The amount of recoverable mineral reserves.
Answer: D
Explanation:
Changes in estimates used in accounting are necessary consequences of periodic presentations of financial statements. Preparing financial statements requires estimating the effects of future events. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and residual values of depreciable able assets, warranty costs, periods benefited by a deferred cost, And recoverable mineral reserves.
NEW QUESTION # 255
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