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IIA-CIA-Part3 Exam is a computer-based exam that consists of 100 multiple-choice questions. IIA-CIA-Part3 exam is divided into two parts, with the first part consisting of 30 questions that cover general business knowledge, and the second part consisting of 70 questions that cover more specific areas of internal auditing. Candidates are given 2.5 hours to complete the exam, and must achieve a score of at least 600 out of 750 to pass. Successfully passing IIA-CIA-Part3 exam is a significant achievement for anyone looking to advance their career in internal auditing.
The Certified Internal Auditor (CIA) certification is a widely recognized professional qualification for internal auditors. To become a CIA, candidates must pass a series of exams that cover various aspects of internal auditing. One of these exams is the IIA-CIA-Part3, also known as the Business Knowledge for Internal Auditing exam. IIA-CIA-Part3 Exam focuses on the business environment and the role of internal auditing in it.
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IIA Business Knowledge for Internal Auditing Sample Questions (Q346-Q351):
NEW QUESTION # 346
An organization buys equity securities for trading purposes and sells them within a short time period. Which of the following is the correct way to value and report those securities at a financial statement date?
- A. At fair value with changes reported in net income.
- B. At amortized cost in the income statement.
- C. At fair value with changes reported in the shareholders' equity section.
- D. As current assets in the balance sheet
Answer: A
NEW QUESTION # 347
Setting the introductory price of a new product relatively high is:
- A. Price skimming.
- B. Penetration pricing.
- C. Market-based pricing.
- D. Pricing by intermediaries.
Answer: A
Explanation:
Price skimming is the practice of setting an introductory price relatively high to attract buyers who are not concerned about price and to recover research and development costs rather quickly. The opposite approach is to use penetration pricing, which involves setting a relatively low price to gain deep market penetration quickly.
NEW QUESTION # 348
Which of the following statements is true regarding an organization's inventory valuation1?
- A. The valuation will be correct it the inventory includes goods sent on consignment to another organization
- B. The valuation will be correct if the inventory includes goods received on consignment from another organization
- C. The valuation will be incorrect it the inventory includes goods m transit shipped free on board (FOB) destination to another organization
- D. The valuation will be incorrect it the inventory includes goods in transit shipped FOB shipping point from another organization
Answer: B
NEW QUESTION # 349
Which of the following is the best approach to overcome entry barriers into a new business?
- A. Offer a standard product that is targeted in the recognized market.
- B. Use an established distribution relationship.
- C. Enter into a slow-growing market.
- D. Invest in commodity or commodity-like product businesses.
Answer: B
NEW QUESTION # 350
A retail organization mistakenly did not include $10,000 of inventory in the physical count at the end of the year.
What was the impact to the organization's financial statements?
- A. Cost of sales is understated and net income is overstated.
- B. Cost of sales and net income are understated.
- C. Cost of sales and net income are overstated.
- D. Cost of sales is overstated and net income is understated.
Answer: B
NEW QUESTION # 351
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