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IIA-CIA-Part3 certification exam is a crucial step for internal auditors who want to demonstrate their proficiency in business knowledge. IIA-CIA-Part3 exam is the third part of the Certified Internal Auditor (CIA) certification process offered by the Institute of Internal Auditors (IIA). IIA-CIA-Part3 Exam is designed to assess a candidate's ability to apply business concepts and principles to internal auditing practices.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q215-Q220):

NEW QUESTION # 215
Auditors often make use of computer programs that perform routine processing functions, such as sorting and merging. These programs are made available by computer companies and others and are specifically referred to:

A. User programs.
B. Compiler programs.
C. Utility programs.
D. Supervisory programs.

Answer: C

Explanation:
Utility programs are provided by manufacturers of equipment to perform routine processing tasks required by both clients and auditors, such as extracting data, sorting, merging, and copying. Utility programs are pretested, are independent of the client's own programming efforts, and furnish useful information without the trouble of writing special programs for the engagement.

NEW QUESTION # 216
Which of the following is an objective of logical security controls for information systems?

A. To restrict access to specific data and resources.
B. To ensure complete and accurate recording of data.
C. To provide an audit trail of the results of processing.
D. To ensure complete and accurate processing of data.

Answer: A

Explanation:
The primary objective of security controls for information systems is to restrict access to data and resources both hardware and software) to only authorized individuals.

NEW QUESTION # 217
The Entity has dividend-payout ratio of:

A. 40.0%
B. 19.6%
C. 28.6%
D. 50.0%

Answer: D

Explanation:
The dividend-payout ratio is the ratio of dividends paid to profit for the period. Hence, it equals 50.0% US $100 dividends $200 profit). An entity's financial statements for the current year are presented below:

NEW QUESTION # 218
Which of me following is applicable to both a job order cost system and a process cost system?

A. Costs are summarized in a production cost repot for each department
B. Total manufacturing costs are determined at the end of each period.
C. Three manufacturing cost elements are tracked direct materials direct labor and manufacturing overhead.
D. The unit cost can be calculated by dividing the total manufacturing costs for the period by the units produced during the period

Answer: C

NEW QUESTION # 219
When an entity increases its degree of financial leverage DFL), the:

A. Equity beta of the entity falls.
B. Systematic risk of the entity rises.
C. Standard deviation of returns on the equity of the entity rises.
D. Systematic risk of the entity falls.

Answer: C

Explanation:
The DFL equals the percentage change in FPS earnings available to ordinary shareholders) divided by the percentage change in net operating profit or loss. When the DFL rises, fixed interest charges and the riskiness of the entity rise. As a result, the variability of returns will increase. In other words, the standard deviation of returns of the entity rises.

NEW QUESTION # 220
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