RELIABLE RELIABLE IIA-CIA-PART3 TEST TUTORIAL OFFER YOU THE BEST EXAM STUDY SOLUTIONS | IIA BUSINESS KNOWLEDGE FOR INTERNAL AUDITING

Reliable Reliable IIA-CIA-Part3 Test Tutorial Offer You The Best Exam Study Solutions | IIA Business Knowledge for Internal Auditing

Reliable Reliable IIA-CIA-Part3 Test Tutorial Offer You The Best Exam Study Solutions | IIA Business Knowledge for Internal Auditing

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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. Business Knowledge for Internal Auditing 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-CIA-Part3 - Pass-Sure Reliable Business Knowledge for Internal Auditing Test Tutorial

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IIA Business Knowledge for Internal Auditing Sample Questions (Q56-Q61):

NEW QUESTION # 56
If two entities, entity' - and entity Y. are alike in all respects except that entity X employs more debt financing and less equity financing than entity Y does. which of the following statements is true?

  • A. Entity X has more net earnings variability than entity Y.
  • B. Entity X has more operating earnings variability than entity Y.
  • C. Entity X has less financial leverage than entity Y.
  • D. Entity X has less operating earnings variability than entity Y.

Answer: A

Explanation:
Given that entity X is more highly leveraged, it has greater fixed financing charges than entity Y. Interest payments are fixed financing charges, but ordinary share dividends are not. As a result, entity X will be more risky and therefore will have a more volatile net income stream than entity Y. if other factors are, constant.


NEW QUESTION # 57
What is the deferred tax asset or liability reported on Lally's balance sheet on December 31 Year 2?

  • A. US $32,000
  • B. US $0
  • C. US $40,000
  • D. US $8,000

Answer: B

Explanation:
Deferred tax assets arise from deductible temporary differences and the carry Forward of unused tax losses and credits. Deferred tax liabilities arise from taxable temporary differences. The interest income not subject to tax resulted in neither future taxable nor future deductible amounts and therefore no deferred tax item was recognized for it. The only item resulting in a temporary difference was the rental income. A deferred tax liability would have been created at the end of Year I _ Given that the difference reversed in Year
2. no deferred amount existed at the end of Year 2.


NEW QUESTION # 58
During an audit of the payroll system, the internal auditor identifies and documents the following condition:
"Once a user is logged into the system, the user has access to all functionality within the system." What is the most likely root cause for tins issue?

  • A. There was no periodic review to validate access rights.
  • B. The application owner apparently did not approve the access request during the provisioning process.
  • C. The system authorization of the user does not correctly reflect the access rights intended.
  • D. The authentication process relies on a simple password only, which is a weak method of authorization.

Answer: C


NEW QUESTION # 59
Which of the following is not a barrier to effective communication?

  • A. Lack of source credibility.
  • B. Communication overload.
  • C. Similar frames of reference.
  • D. Filtering.

Answer: C


NEW QUESTION # 60
During which phase of disaster recovery planning should an organization identify the business units, assets, and systems that are critical to continuing an acceptable level of operations?

  • A. Business impact analysis.
  • B. Scope and initiation phase.
  • C. Plan development.
  • D. Testing.

Answer: A


NEW QUESTION # 61
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