IIA IIA-CIA-Part3 Latest Dumps Questions, IIA-CIA-Part3 Valid Test Prep
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>> IIA IIA-CIA-Part3 Latest Dumps Questions <<
IIA IIA-CIA-Part3 Accurate Questions and Answers
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IIA Business Knowledge for Internal Auditing Sample Questions (Q176-Q181):
NEW QUESTION # 176
Which one of the following is not a characteristic of an innovative manufacturing company?
- A. Emphasis on continuous improvement.
- B. Emphasis on existing products.
- C. Improved customer satisfaction through product quality.
- D. Responsiveness to the changing manufacturing environment.
Answer: B
Explanation:
Innovative companies are customer driven. Because customers demand ever better quality and competitors are attempting to provide that quality, continuous improvement called kaizen by the Japanese) is essential for such companies. Thus, the flaw of innovative products and services must be continuous. Simply emphasizing existing products is not an effective strategy for most organizations.
NEW QUESTION # 177
Which of the following statements regarding program change management is not correct?
- A. The degree of risk associated with a proposed change determines if the change request requires authorization.
- B. The goal of the change management process is to sustain and improve organizational operations.
- C. All changes should be tested in a non-production environment before migrating to the production environment.
- D. In order to protect the production environment, changes must be managed in a repeatable, defined, and predictable manner.
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION # 178
In creating a risk-based plan, which of the following best describes a top-down approach to understanding business processes?
- A. Analyzing the organization's strategic plan where the business processes are defined.
- B. Analyzing the organization's objectives and identifying the processes needed to achieve the objectives.
- C. Identifying the processes at the activity level.
- D. Identifying the risks affecting the organization, the objectives, and then the processes concerned.
Answer: B
NEW QUESTION # 179
All of the following are generally included in a cost-of-quality report except:
- A. Supplier evaluations.
- B. Warranty claims.
- C. Design engineering.
- D. Lost contribution margin.
Answer: D
Explanation:
A cost-of-quality report includes most costs related to quality, including the costs of external failure, internal failure, prevention, and appraisal. Lost contribution margins from poor product quality are external failure costs that normally do not appear on a cost-of-quality report because they are opportunity costs. Opportunity costs are not usually recorded by the accounting system, thereby understating the costs of poor quality. Lost contribution margins from reduced sales, market share, and sales prices are external failure costs that are also not usually included in a cost-of-quality report.
NEW QUESTION # 180
When ranking two mutually exclusive investments with different initial amounts, management should give first priority to the project:
- A. That has the greater accounting rate of return.
- B. Whose net after-tax flows equal the initial investment.
- C. That has the greater profitability index.
- D. That generates cash flows for the longer period of time.
Answer: C
Explanation:
The profitability excess present value) index facilitates the comparison of investments that have different initial costs. The profitability index equals the present value of future net cash inflows divided by the initial cash investment. The investment with the greater profitability index will be the preferred investment. However, if investments are mutually exclusive, the net present value method may be the better way of ranking project. The excess present value, index indicates the be return per dollar invested but does not consider the alternate', , possibilities for unused Funds. Thus, the small mutually exclusive projects may have the higher n~ is but the incremental investment in the larger project may make it the better choice. For example, a US $8,000,000 project may be a better use of funds than a combination of a US $6.000.000 project with a higher ,rx and the best alternative use of the remaining US $2,000,000. A company has the following three investment projects available:
The company has a 40% debt and 60% equity capital structure. Each monetary unit of investment funds will be raised in these proportions .40 of debt and .60 of equity). The marginal cost of financing increases with the amount of new funds raised, as follows:
These investment opportunities and financing costs are shown in the graph below:
MCC=Marginal cost of capital IOS=Investment opportunity schedule
NEW QUESTION # 181
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