IIA-CIA-Part3 IIA Exam Questions and Free Practice Test

Question 115

- (Exam Topic 1)
Which of the following is an example of a nonfinancial internal failure quality cost?

A. Decreasing gross profit margins over time.

B. Foregone contribution margin on lost sales.

C. Defective units shipped to customers.

D. Excessive time to convert raw materials into finished goods.

Correct Answer:D

Question 116

- (Exam Topic 2)
An investor has acquired an organization that has a dominant position in a mature, slow-growth industry and consistently creates positive financial income Which of the following terms would the investor most likely label this investment in her portfolio?

A. A star

B. A cash cow

C. A Question mark

D. A dog

Correct Answer:B

Question 117

- (Exam Topic 1)
Preferred stock is less risky for investors than is common stock because:

A. Common stock pays dividends as a stated percentage of face value.

B. Common stock has priority over preferred stock with regard to earnings and assets.

C. Preferred dividends are usually cumulative.

D. Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.

Correct Answer:C

Question 118

- (Exam Topic 1)
Which of the following should an organization consider when developing strategic objectives for its business processes?
* 1. Contribution to the success of the organization.
* 2. Reliability of operational information.
* 3. Behaviors and actions expected of employees.
* 4. How inputs combine with outputs to generate activities.

A. 1 and 2 only

B. 1 and 3 only

C. 2 and 4 only

D. 3 and 4 only

Correct Answer:B

Question 119

- (Exam Topic 1)
Which is the least effective form of risk management?

A. Systems-based preventive control.

B. People-based preventive control.

C. Systems-based detective control.

D. People-based detective control.

Correct Answer:D

Question 120

- (Exam Topic 2)
Which of the following application controls verifies the accuracy of transaction results in a system?

A. Input controls

B. Output controls

C. Processing controls

D. Integrity controls

Correct Answer:C

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