IIA-CIA-Part3 Exam Dumps - Business Knowledge for Internal Auditing

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Question # 137

Which of the following statements is true regarding cost-volume-profit analysis?

Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted

Breakeven is the amount of units sold to cover variable costs

Breakeven occurs when the contribution margin covers fixed costs

Following breakeven, net operating income will increase by the excess of fixed costs less the variable costs per unit sold

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Question # 138

Capital budgeting involves choosing among various capital projects to find the one(s) that will maximize a company's return on its financial investment. Which of the following parties approves the capital budget?

Board of directors.

Senior management.

Chief financial officer.

Accounting personnel.

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Question # 139

Which of the following authentication controls combines what a user knows with the unique characteristics of the user, respectively?

Voice recognition and token

Password and fingerprint

Fingerprint and voice recognition

Password and token

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Question # 140

According to Maslowâ€™s hierarchy of needs theory, which of the following best describes a strategy where a manager offers an assignment to a subordinate specifically to support his professional growth and future advancement?

Esteem by colleagues

Self-fulfillment

Sense of belonging in the organization

Job security

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Question # 141

According to IIA guidance, which of the following best describes an adequate management (audit) trail application control for the general ledger?

Report identifying data that is outside of system parameters.

Report identifying general ledger transactions by time and individual.

Report comparing processing results with original input.

Report confirming that the general ledger data was processed without error.

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Question # 142

Which of the following is an example of a key systems development control typically found in the in-house development of an application system?

Logical access controls monitor application usage and generate audit trails.

The development process is designed to prevent, detect, and correct errors that may occur.

A record is maintained to track the process of data from input, to output, to storage.

Business users' requirements are documented, and their achievement is monitored.

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Question # 143

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

Direct product costs

Indirect costs

Direct period costs

Indirect period costs

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Question # 144

An organizationâ€™s account for office supplies on hand had a balance of $9,000 at the end of year one. During year two, the organization recorded an expense for purchasing office supplies. At the end of year two, a physical count determined that the organization has $11,500 in office supplies on hand. Based on this information, what would be recorded in the adjusting entry at the end of year two?

A debit to office supplies on hand for $2,500

A debit to office supplies on hand for $11,500

A debit to office supplies on hand for $20,500

A debit to office supplies on hand for $42,500

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