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The IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Certification Exam is designed to test the knowledge and skills of internal auditors in the areas of business acumen and understanding of the organization’s operations. This certification is offered by the Institute of Internal Auditors (IIA), a global organization that provides professional development and certification for internal auditors.
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IIA Business Knowledge for Internal Auditing Sample Questions (Q22-Q27):
NEW QUESTION # 22
Management of a company is attempting to build a reputation as a world-class manufacturer of quality products. Which of the following measures would not be used by the firm to measure quality?
- A. The percentage of shipments returned by customers because of poor quality.
- B. The number of parts shipped per day.
- C. The percentage of products passing quality tests the first time.
- D. The number of defective parts per million.
The number of parts shipped per day would most likely be used as a measure of the effectiveness and efficiency of shipping procedures, not the quality of the product. This measure does not consider how many of the parts are defective.
NEW QUESTION # 23
Which of the following is a project planning methodology that involves a complex series of required simulations to provide information about schedule risk?
- A. Integrated Project Plan.
- B. Monte Carlo Analysis.
- C. Earned Value Management (EVM).
- D. Project Management Information System (PMIS)
Explanation/Reference: https://opentextbc.ca/projectmanagement/chapter/chapter-16-risk-management-planning-project- management/
NEW QUESTION # 24
Which of me following rs appfccaWe lo both a job order cost system and a process cost system?
- A. The unit cost can be calculated by dividing the total manufacturing costs for the period by the units produced during the period
- B. Total manufacturing costs are determined at the end of each period.
- C. Costs are summarized in a production cost repot for each department
- D. Three manufacturing cost elements are tracked direct materials direct labor and manufacturing overhead.
NEW QUESTION # 25
The entity should invest in Project(s) <List A> and has an optimal capital budget of <List B> million.
- A. Option A
- B. Option B
- C. Option C
- D. Option D
The inf.-,reaction of the IOS and MCC schedules determines the cost of capital and the optimal capital budget. The entity should begin with the project having the highest return and continue accepting projects as long as the IRR the MCC. The highest ranked project is A, with a $50 million cost and a 14% IRR. The MCC is only 6% over this range of financing. The next highest ranked project is B, with a US $75 million cost and a 12% IRR. When US $125 million has been invested, the marginal cost of the next unit of capital is 10%, so Project B. is also acceptable, bringing the optimal capital budget to US $125 million. Project C is not acceptable because it has an 8% return. The MCC is 10% for the first US $50 million invested in this project and 12% for the remaining US $75 million.
NEW QUESTION # 26
Which of the following statements regarding database management systems is not correct?
- A. Applications pass on the instructions for data manipulation which are then executed by the database management system.
- B. The data within the database management system can only be manipulated directly by the database management system administrator.
- C. Database management systems handle data manipulation inside the tables, rather than it being done by the operating system itself in files.
- D. The database management system acts as a layer between the application software and the operating system.
NEW QUESTION # 27
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