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IIA-CIA-Part3 certification exam is one of the most comprehensive exams for internal auditors. It is designed to test the knowledge and understanding of candidates in the area of business knowledge for internal auditing. IIA-CIA-Part3 exam covers a wide range of topics, including business acumen, financial management, risk management, and information technology. Passing the exam is an essential step towards becoming a certified internal auditor (CIA).

Achieving the IIA-CIA-Part3 certification demonstrates to employers and colleagues that the candidate has a deep understanding of business knowledge and its application to the internal audit function. It also demonstrates a commitment to professional development and continuing education. Business Knowledge for Internal Auditing certification is recognized globally and can lead to increased job opportunities and higher salaries for internal auditors.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q334-Q339):

NEW QUESTION # 334
Which of the following is not one of the seven elements of risk?

A. Uncertainty.
B. Frequency
C. Timing.
D. ROI analysis.

Answer: C

Explanation:
The seven elements of risk are threat events, single loss exposure value, frequency, uncertainty. safeguards and controls, safeguard and control costs, and cost/benefit or ROI analysis. Timing, which is not a risk element, is when a risk may occur_ It is different from frequency, which is how often an uncertain event might occur.

NEW QUESTION # 335
A new advertising agency serves a wide range of clients including manufacturers, restaurants, service businesses, department stores, and other retail establishments. The accounting system the advertising agency has most likely adopted for its record keeping in accumulating costs is:

A. Process costing.
B. Operation costing.
C. Job-order costing.
D. Relevant costing.

Answer: C

Explanation:
Job-order costing is used by organizations whose products or services are readily identified by individual units or batches. The advertising agency accumulates its costs by client Job-order costing is the most appropriate system for this type of nonmanufacturing firm.

NEW QUESTION # 336
The effective-interest method and the straight-line method of amortizing a bond discount differ in that the effective-interest method results in:

A. Escalating annual interest expense over the term of the bonds.
B. Higher total interest expense over the term of the bonds.
C. Constant annual interest expense over the term of the bonds.
D. Shrinking annual interest expense over the term of the bonds.

Answer: A

Explanation:
Under the effective-interest method, interest expense for each period equals the effective interest rate times the carrying value of the bond issue. As the discount is amortized, the carrying value rises and interest expense increases.

NEW QUESTION # 337
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

A. Observing and analyzing controls.
B. Prioritizing known risks.
C. Reviewing organizational objectives.
D. Identifying risks to the organization's operations.

Answer: C

NEW QUESTION # 338
An entity has US $100 of current assets, US $100 of fixed assets, US $100 of debt, and US $100 of equity. If it then leases a US $75 asset in a(n) ,List A, lease agreement, the debt-to-assets ratio of the entity will be <List B>

A. Option D
B. Option A
C. Option C
D. Option B

Answer: A

Explanation:
If the lease is a finance lease, both the asset and the obligation for future payments are
recorded. The entity would have current assets of US $100, debt of US $175$100 + $75), fixed assets of US $175$100 + 175), and equity of US $100. Hence, the debt-to-assets ratio would be 64%US $175 275).

NEW QUESTION # 339
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