IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 851:

  In deciding whether to have a work group make a decision or to make the decision personally, a manager should consider

  A. When the decision is needed.
  B. How important it is for the work group to accept the decision.
  C. Whether there are strong individuals in the work group who could dominate the decisionmaking process.
  D. All of the answers are correct.
  D. All of the answers are correct.

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  Explanation

  If the decision is needed immediately, group decision making may not be indicated because assembling the group and the often inefficient interactions of its members are time consuming. Another disadvantage of group decision making is the possibility a few people will dominate the deliberations. If they lack ability, the group may not be effective. An advantage of the decision-making process is that it fosters acceptance by the members of the group. Participation by the individuals who will be required to implement the solution adopted increases the likelihood of its success.

• Question 852:

  A bicycle manufacturer incurs a combination of fixed and variable costs with the production of each bicycle Which of the following statements true recording these costs?

  A. If the number of bicycles produced is increased by 15 percent, the variable cost per unit will increase proportionally
  B. The fixed cost per unit will vary directly based on the number of bicycles produced during the production cycle
  C. The total variable cost will vary proportionally and inversely with the number of bicycles produced during a production run
  D. If the number of bicycles produced is increased by 30 percent the fixed cost per unit will decline
  D. If the number of bicycles produced is increased by 30 percent the fixed cost per unit will decline

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  Explanation

• Question 853:

  The first step in determining product price is:

  A. Determining the cost of the product.
  B. Developing pricing objectives.
  C. Evaluating prices set by the competitors.
  D. Selecting a pricing method.
  B. Developing pricing objectives.

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  Explanation

• Question 854:

  An organization that relies heavily on IT wants to contain the impact of potential business disruption to a period of approximately four to seven days. Which of the following business recovery strategies would most efficiently meet this organization's needs?

  A. A recovery strategy whereby a separate site has not yet been determined but hardware has been reserved for purchase and data backups
  B. A recovery strategy whereby a separate site has been secured and is ready for use, with fully configured hardware and real-time synchronized data
  C. A recovery strategy whereby a separate site has been secured and the necessary funds for hardware and data backups have been reserved
  D. A recovery strategy whereby a separate site has been secured with configurable hardware and data backups
  D. A recovery strategy whereby a separate site has been secured with configurable hardware and data backups

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  Explanation

• Question 855:

  A corporation adheres to an open-systems perspective belief that the organization must adapt to changes in the environment to be successful. Which of the following would be inconsistent with the corporation following an open-systems framework?

  A. The corporation attempts to utilize resources in order to be self-sufficient.
  B. The corporation experiments with different production methods to find the method that is the most efficient and effective.
  C. The corporation emphasizes the overall result of projects instead of the individual inputs.
  D. The corporation requires employees to undergo monthly training seminars.
  A. The corporation attempts to utilize resources in order to be self-sufficient.

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  Explanation

  Open systems acknowledge the need to interact with their environment and therefore are not able to be self-sufficient. Self-sufficiency is a quality inherent in closed systems because closed systems try to avoid interaction with the external environment.

• Question 856:

  Which of the following statements is true with regard to information protection?

  A. All personal information, by definition is considered to be sensitive, requiring specialized controls.
  B. Information is not considered personal if it can only be linked to or used to identify an individual indirectly.
  C. Individuals who provide personal information to organizations share in the risk of inappropriate disclosure.
  D. Good protection controls remove any restrictions on the quantity of personal information that can be collected
  A. All personal information, by definition is considered to be sensitive, requiring specialized controls.

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  Explanation

• Question 857:

  A company experiences a decrease in unit sales over the long run. It is in a(n):

  A. Emerging industry.
  B. Global industry.
  C. Mature industry.
  D. Declining industry.
  D. Declining industry.

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  Explanation

  A declining industry is not simply at a low point in the business cycle but has sustained a permanent decrease in unit sales over the long run. Michael E. Porter's view is that this phase of the industry life cycle does not correspond exactly to the decline stage in the product life cycle. Moreover, he argues that the nature of the competition and the range of strategic choices in the decline phase are diverse and vary widely from industry to industry. The result is that some industries may be able to negotiate decline without intense rivalry, long-term overcapacity, and ruinous losses.

• Question 858:

  An organization decided to invest in new office equipment for $320,000. The estimated useful life of the equipment is four years. The residual value will be $40,000. The depreciation method is straight-line. The new equipment will allow the organization to save $150,000 per year. The estimated tax rate used in the organization is 30 percent. The required rate of return is 15 percent. The following are present values of $1 during four years for 15 percent: Year 1 = $0.87 Year 2 = $0.76 Year 3 = $0.66 Year 4 = $0.57

  What is net present value of this investment?

  A. $71,140
  B. $63,160
  C. $40,360
  D. $3,100
  D. $3,100

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  Explanation

• Question 859:

  Which of the following statements is true regarding partnership liquidation?

  A. Operations can continue after the liquidation if all partners agree
  B. Partnership liquidation ends both the legal and economic life of an entity
  C. Partnership liquidation occurs when there is capital deficiency Stable
  D. When a partnership is liquidated, each partner pays creditors from cash received
  B. Partnership liquidation ends both the legal and economic life of an entity

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  Explanation

• Question 860:

  According to IIA guidance, a business impact analysis would include which of the following steps?

  A. Defining staffing alternatives needed for recovery
  B. Selecting recovery solutions and recovery sites
  C. dentifying the business processes
  D. Defining alternative sourcing of critical functions
  C. dentifying the business processes

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  Explanation