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IIA Business Knowledge for Internal Auditing Sample Questions (Q318-Q323):

NEW QUESTION # 318
In the determination of cost of goods sold, <List A> must be <List B> cash payments for goods along with other adjustments.

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

Answer: D

Explanation:
To convert from the cash basis cash payments) to the accrual basis cost of goods sold), an accounts payable must be added to cash payments for goods to determine net purchases.
Net purchases is then adjusted for the change in inventory to determine cost of goods sold.

NEW QUESTION # 319
A company employs a process cost system using the first-in, first-out FIFO) method. The product passes through both Department 1 and Department 2 in order to be completed.
Units enter Department 2 upon completion in Department 1 Additional direct materials are added in Department 2 when the units have reached the 25% stage of completion with respect to conversion costs. Conversion costs are added proportionally in Department 2.
The production activity in Department 2 for the current month was as follows:

How many equivalent units for direct materials were added in Department 2 for the current month?

A. 80,000 units
B. 70,000 units
C. 95.000 units.
D. 85,000 units.

Answer: B

Explanation:
Beginning inventory is 40% complete. Hence, direct materials have already been added. Ending inventory has not reached the 25% stage of completion, so direct materials have not yet been added to these units. Thus, the equivalent units for direct materials calculated on a FIFO basis are equal to the units started and completed in the current period 85.000 units completed - 15,000 units in BWIP = 70,000 units started and completed). A manufacturing company employs a process cost system. The company's product passes through both Department 1 and Department 2 in order to be completed. Conversion costs are incurred uniformly throughout the process in Department 2. The direct material is added in Department 2 when conversion is 80% complete. This direct material is a preservative that not change the volume. Spoiled units are discovered at the final inspection and are recognized then for sting purposes. The physical flow of units for the current month is presented below.

NEW QUESTION # 320
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. Plan development.
B. Testing.
C. Scope and initiation phase.
D. Business impact analysis.

Answer: D

NEW QUESTION # 321
Which of the following factors would reduce dissatisfaction for a management trainee but would not particularly motivate the trainee?

A. Promotion.
B. A sense of achievement.
C. An incremental increase in salary.
D. Recognition.

Answer: C

NEW QUESTION # 322
Image processing systems have the potential to reduce the volume of paper circulated throughout an organization. To reduce the likelihood of users relying on the wrong images, management should ensure that appropriate controls exist to maintain the:

A. Initial sequence of index data.
B. Accessibility of image data.
C. Legibility of image data.
D. Integrity of index data.

Answer: D

Explanation:
Data integrity is a protectibility objective. If index data for image processing systems are corrupted, users will likely be relying on the wrong images.

NEW QUESTION # 323
......

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IIA-CIA-Part3 Actualtest, New IIA-CIA-Part3 Test Question

New IIA-CIA-Part3 Test Question, IIA-CIA-Part3 Clear Exam

IIA Business Knowledge for Internal Auditing Sample Questions (Q318-Q323):

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