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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Exam is an essential certification exam for internal auditors seeking to enhance their knowledge and skills in the field of business. IIA-CIA-Part3 Exam covers a broad range of business topics and is designed to test the candidate's ability to apply business concepts and principles to internal audit activities. Business Knowledge for Internal Auditing certification is recognized globally and is highly valued by employers, making it an excellent way for internal auditors to advance their careers.

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Passing the IIA-CIA-Part3 Exam demonstrates a significant achievement in an individual's career as an internal auditor. It not only validates their knowledge and skills but also enhances their credibility and marketability. Business Knowledge for Internal Auditing certification is highly valued by employers as it assures them that the certified individual has the necessary knowledge to perform their duties effectively and efficiently. Additionally, achieving this certification can lead to career advancement opportunities, higher salaries, and increased job security.

IIA-CIA-Part3 (Business Knowledge for Internal Auditing) certification exam is a globally recognized certification that demonstrates an individual's knowledge and expertise in the field of internal auditing. Business Knowledge for Internal Auditing certification is offered by the Institute of Internal Auditors (IIA), which is a professional association that provides education, certification, and guidance for internal auditors worldwide.

IIA Business Knowledge for Internal Auditing Sample Questions (Q304-Q309):

NEW QUESTION # 304
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 # 305
Where complex problems need to be addressed, which of the following communication networks would be most appropriate?

A. All-channel.
B. Wheel.
C. Circle.
D. Chain.

Answer: A

NEW QUESTION # 306
An entity that sprays chemicals in residences to eliminate or prevent infestation of insects requires that customers prepay for 3 months' service at the beginning of each new quarter. Select the term that appropriately describes this situation from the viewpoint of the entity.

A. Accrued income.
B. Deferred income.
C. Earned income.
D. Prepaid expense.

Answer: B

Explanation:
The prepayment does not meet the income recognition criteria the future inflow of economic benefits is not sufficiently certain given that the entity has not done what is required to be entitled to those benefits. Thus, the amount received in advance is considered a liability deferred income) because it represents an obligation to perform a service in the future an outflow of economic benefits) arising from a past transaction.

NEW QUESTION # 307
Plantation should treat Lease B as a(n):

A. Operating lease. charging US $3,500 in rental expense and US $500 in executor costs to annual operations.
B. Finance lease with an initial asset value of US $9,590.
C. Finance lease with an initial asset value of US $10,200.
D. Finance lease with an initial asset amount of US $10,960

Answer: B

Explanation:
A finance lease is one in which the risks and rewards of ownership are transferred to the lessee. For accounting purposes, the lessee treats a finance lease as similar to the purchase of an asset capitalized at the fair value of the leased asset or, if lower the present value of the minimum lease payments. The lessee's minimum lease payments include the required payments, excluding contingent rent and executor costing taxes and insurance), plus any amounts guaranteed by the lessee or a related party. If a bargain purchase option exists, however, minimum lease payments equal the required payments plus the amount of the option. If the present value of the minimum lease payments calculated without guaranteed amounts or a bargain purchase option) is substantially all of the asset's fair value, the lease normally is accounted for as a finance lease. Given that the executor costs associated with the lease are to be paid by the lesser.
A portion of the lease rental price is for those costs. not for the asset. Consequently the annual minimum lease payment equals the annual payment minus the executory costs. or US $3,500$4,000 yearly rental - $500). The present value of the minimum lease payments is therefore US $9,590 $3,500 x 2.74), which is substantially all of the fair value of the asset. Thus the lease should be capitalized. The appropriate amount of the initial asset value is the present value of the minimum lease payments calculated above.

NEW QUESTION # 308
A company is deciding whether to purchase an automated machine to manufacture one of its products. Expected net cash flows from this decision depend on several factors, interactions among those factors, and the probabilities associated with different levels of those factors. The method that the company should use to evaluate the distribution of net cash flows from this decision and changes in net cash flows resulting from changes in levels of various factors is:

A. Differential analysis.
B. Simulation and sensitivity analysis.
C. Linear programming.
D. Correlation analysis.

Answer: B

Explanation:
Simulation is a technique for experimenting with logical and mathematical models using a computer. Sensitivity analysis examines how the model's outcomes change as the parameters change.

NEW QUESTION # 309
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