IIA CIA IIA-CIA-PART3-3P Questions & Answers

• Question 411:

  The economic order quantity can be calculated using the following formula:

  Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

  A. Decrease by about 17 percent.

  B. Decrease by about 7 percent.

  C. Increase by about 7 percent.

  D. Increase by about 17 percent.

  Correct Answer: D

• Question 412:

  In mergers and acquisitions, which of the following is an example of a horizontal combination?

  A. Dairy manufacturing company taking over a large dairy farm.

  B. A movie producer acquires movie theaters.

  C. A petroleum processing company acquires an agro-processing firm.

  D. A baker taking over a competitor.

  Correct Answer: D

• Question 413:

  Which of the following are appropriate reasons for internal auditors to document processes as part of an

  audit engagement?

  1) To determine areas of primary concern.

  2) To establish a standard format for process mapping.

  3) To define areas of responsibility within the organization.

  4) To assess the performance of employees.

  A. 1 and 2 only

  B. 1 and 3 only

  C. 2 and 3 only

  D. 2 and 4 only

  Correct Answer: B