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IIA-CIA-Part3-3P exam comprises of 100 questions and lasts for three hours. The questions are based on a multiple-choice format, and candidates should expect to answer questions that test their knowledge, comprehension, analysis, and the evaluation of concepts related to the internal audit profession.

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IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Sample Questions (Q206-Q211):

NEW QUESTION # 206
Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?

A. Risk tolerance
B. Performance.
C. Threats and opportunities.
D. Governance

Answer: C

NEW QUESTION # 207
When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

A. Indirect product costs
B. Direct period costs
C. Direct product costs
D. Indirect period costs.

Answer: C

NEW QUESTION # 208
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?

A. Identifying the risks affecting the organization, the objectives, and then the processes concerned.
B. Analyzing the organization's strategic plan where the business processes are defined.
C. Identifying the processes at the activity level.
D. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.

Answer: D

NEW QUESTION # 209
An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent. If the organization has total debt of $1 000 000 what is the organization's sales level?

A. $416,667
B. $3.750.000
C. $5 000.000
D. $266.667

Answer: B

NEW QUESTION # 210
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?

A. Knowledge-based systems.
B. Biometrics.
C. Electronic funds transfer.
D. Standardized graphical user interface.

Answer: C

NEW QUESTION # 211
......

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