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Free IIA-CIA-Part3 Exam Braindumps (page: 36)

Page 36 of 390
PDF with 1555 Questions

Sales representatives for a manufacturing company are reimbursed for 100% of their cellular telephone bills. Cellular telephone costs vary significantly from representative to representative and from month to month, complicating the budgeting and forecasting processes. Management has requested that the internal auditors develop a method for controlling these costs.
Which of the following would most appropriately be included in the scope of the consulting project?

  1. Control self-assessment involving sales representatives.
  2. Benchmarking with other cellular telephone users.
  3. Business process review of procurement and payables routines.
  4. Performance measurement and design of the budgeting and forecasting processes.

Answer(s): C

Explanation:

A business process review (BPR) assesses the performance of administrative, financial, and other processes, such as those within the procurement and payables functions. BPR considers process effectiveness and efficiency, including the presence of appropriate controls, to mitigate business risk. It seeks to achieve improvements in such critical measures of performance as cost, quality, service, speed, and customer satisfaction. Because the objective is to control cellular phone costs, BPR is the appropriate tool.



An investment company is attempting to allocate its available funds between two investment alternatives, equities and bonds, which differ in terms of expected return and risk. The company would like to minimize its risk while earning an expected return of at least 10% and investing no more than 70% in either of the investment alternatives. An appropriate technique for allocating its funds between equities and bonds is:

  1. Linear programming.
  2. Capital budgeting.
  3. Differential analysis.
  4. Queuing theory.

Answer(s): A

Explanation:

Linear programming is a mathematical technique for planning resource allocation that optimizes a given objective function that is subject to certain constraints. In this case, the maximum investment is constrained by a 70% limit on either investment choice.



Which of the following will allow a manufacturer with limited resources to maximize profits?

  1. The Delphi technique.
  2. Exponential smoothing.
  3. Regression analysis.
  4. Linear programming.

Answer(s): D

Explanation:

Linear programming is a mathematical technique for planning resource allocation that optimizes a given objective function subject to certain constraints. Thus, it maximizes a revenue or profit function or minimizes a cost function, subject to constraints. For example, constraints may be limited (scarce) resources or minimum/maximum levels of production, performance, etc. In business, linear programming is used for planning resource allocations. Managers are often faced with problems of selecting the most profitable or least costly way to use available resources.



A traditional quality control process in manufacturing consists of mass inspection of goods only at the end of a production process. A major deficiency of the traditional control process is that:

  1. It is expensive to do the inspections at the end of the process.
  2. It is not possible to rework defective items.
  3. It is not 100% effective.
  4. It does not focus on improving the entire production process.

Answer(s): D

Explanation:

The process used to produce the goods is not thoroughly reviewed and evaluated for efficiency and effectiveness. Preventing defects and increasing efficiency by improving the production process raises quality standards and decreases costs.



Page 36 of 390



Post your Comments and Discuss IIA IIA-CIA-Part3 exam with other Community members:

Gosia commented on December 16, 2024
Hi, did you have the same questions on exams?
POLAND
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Becky commented on June 23, 2024
Exam collections here awesome. Kudos
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Shehata mohamed commented on December 13, 2023
Many thanks cia part 3
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IIA-CIA-Part3 commented on July 16, 2023
CIA Exam Part Three: Business Knowledge for Internal Auditing
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KC commented on December 20, 2017
Very helpful. For a another braindump I paid almost 4 times this and got the same material. Then I came across this site. Can't believe the same set of questions and answers are sold for almost a fraction of a price with much better quality and support.
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