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IIA Business Knowledge for Internal Auditing Sample Questions (Q317-Q322):

NEW QUESTION # 317
Compared with prototyping, life cycle methodologies are appropriate for problems involving:

A. High user understanding of tasks and large project size.
B. Low user understanding of tasks and small project size.
C. Uncertainty of requirements and large project size.
D. Low user understanding of tasks and uncertainty of requirements.

Answer: A

Explanation:
The life cycle approach is best employed when systems are large and highly structured, users understand the tasks to be performed by the information system, and the developers have directly applicable experience in designing similar systems. In the life cycle process, each stage of development is highly structured, and requirements are clearly defined.

NEW QUESTION # 318
Which of the following standards would be most useful in evaluating the performance of a customer- service group?

A. Employees should maintain a positive attitude when dealing with customers.
B. The average time per customer inquiry should be kept to a minimum.
C. All customer inquiries should be answered within seven days of receipt.
D. Customer complaints should be processed promptly.

Answer: C

NEW QUESTION # 319
Which of the following statements about desktop computers, servers, and mainframe computers is true?

A. Desktop computers usually more than servers but less than mainframes.
B. Because of the increase, desktop computers, there will be little need for mainframes in the near future.
C. The cost per transaction to process on each type of computer has decreased in recent years.
D. Servers must be programmed directly in machine language while mainframes use higher-level language.

Answer: C

Explanation:
Advances in technology have resulted in less expensive computers and increased computing power. The cost to process transactions on all kinds of computers has therefore decreased.

NEW QUESTION # 320
Monitoring is an important component of internal control. Which of the following is not an example of monitoring?

A. Management has asked internal auditing to perform regular audits of the controls over cash processing.
B. Management regularly compares divisional performance with budgets for the division.
C. Data processing management regularly generates exception reports for unusual transactions or volumes of transactions and follows up with investigation as to causes.
D. Data processing management regularly reconciles batch control totals for items processed with batch controls for items submitted.

Answer: D

Explanation:
Monitoring assesses the quality of internal control over time. Management considers whether internal control is properly designed and operating as intended and modifies it to reflect changing conditions. Monitoring may be in the form of separate, periodic evaluations or of ongoing monitoring. Ongoing monitoring occurs as part of routine operations. It includes management and supervisory review, comparisons, reconciliations, and other actions by personnel as part of their regular activities. However, reconciling batch control totals is a processing control. This information is relevant to a theory of constraints TOC) analysis. A manufacturer that can sell all of its output produces its sole product using three operations. Each unit sells for US $120, and direct materials costing US $48 per unit are added at the start of the first operation. Other variable costs are immaterial. The following annual cost and capacity information is available concerning those operations:

NEW QUESTION # 321
When an entity reports deferred tax assets and liabilities, deferred tax expense or income reflects:

A. The changes in deferred tax assets and deferred tax liabilities.
B. A change in deferred tax liabilities.
C. Amount of the total tax liability.
D. A change in deferred tax assets.

Answer: A

Explanation:
Deferred tax expense or income is the sum of the changes in the deferred tax assets and deferred tax liabilities. For example, this amount reflects changes relating to the origination or reversal of temporary differences, changes in tax rates and imposition of new taxes.

NEW QUESTION # 322
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New IIA-CIA-Part3 Exam Duration | Exam IIA-CIA-Part3 Flashcards

2025 IIA-CIA-Part3: Business Knowledge for Internal Auditing –The Best New Exam Duration

IIA Business Knowledge for Internal Auditing Sample Questions (Q317-Q322):

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