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IIA Business Knowledge for Internal Auditing Sample Questions (Q204-Q209):

NEW QUESTION # 204
When using PERT Program Evaluation Review Technique), the expected time for an activity when given an optimistic time A), a pessimistic time B), and a most likely time m) is calculated by which one of the following formulas?

A. 4 abm) =6
B. a + b) =2
C. b - a) =2
D. a + 4m +b) =6

Answer: D

Explanation:
PERT was developed to aid managers in controlling large, complex projects. PERT analysis includes probabilistic estimates of activity completion times. Three time estimates are made: Optimistic, most likely, and pessimistic. The time estimates for an activity are assumed to approximate a beta probability distribution. PERT approximates the mean of the beta distribution by dividing the sum of the optimistic time, the pessimistic time, and four times the most likely time by six.

NEW QUESTION # 205
Under a total quality management (TQM) approach:

A. Quality control is performed by highly trained inspectors at the end of the production process.
B. Measurement occurs throughout the process, and errors are caught and corrected at the source.
C. A large number of suppliers are used in order to obtain the lowest possible prices.
D. Upper management assumes the primary responsibility for the quality of the products and services.

Answer: B

Explanation:
TQM emphasizes quality as a basic organizational function. TQM is the continuous pursuit of quality in every aspect of organizational activities. One of the basic principles of TQM is doing it right the first time. Thus, errors should be caught and corrected at the source.

NEW QUESTION # 206
To ensure privacy in a public key encryption system, knowledge of which of the following keys would be required to decode the received message?
I. Private
II.
Public

A. I.
B. Both l and ll. D Neither I nor IL
C. II.

Answer: A

Explanation:
In a public key system, the public key is used to encrypt the message prior to transmission, whereas the private key is needed to decrypt decode) the message.

NEW QUESTION # 207
At the introduction stage of an innovative product, the profit growth is normally slow due to:

A. Available alternatives.
B. Expensive sales promotion.
C. High competition. C A mass market

Answer: B

Explanation:
The introduction stage is characterized by slow sales growth and lack of profits because of the high expenses of promotion and selective distribution to generate awareness of the
product and encourage customers to try it. Thus, the per-customer cost is high. Competitors are few, basic versions of the product are produced, and higher-income customers innovators) are usually targeted. Cost-plus prices are charged. They may initially be high to permit cost recovery when unit sales are low. The strategy is to infiltrate the market, plan for financing to cope with losses, build supplier relations, increase production and marketing efforts, and plan for competition.

NEW QUESTION # 208
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. Earned income.
B. Deferred income.
C. Prepaid expense.
D. Accrued income.

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 # 209
......

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Ted Stone Ted Stone

Biography

100% Pass IIA-CIA-Part3 - Business Knowledge for Internal Auditing Updated Certification Torrent

IIA-CIA-Part3 Valid Test Pass4sure, IIA-CIA-Part3 Test Vce

IIA Business Knowledge for Internal Auditing Sample Questions (Q204-Q209):

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Ted Stone Ted Stone

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100% Pass IIA-CIA-Part3 - Business Knowledge for Internal Auditing Updated Certification Torrent

IIA-CIA-Part3 Valid Test Pass4sure, IIA-CIA-Part3 Test Vce

IIA Business Knowledge for Internal Auditing Sample Questions (Q204-Q209):

Newest IIA-CIA-Part3 Exam Collection - IIA-CIA-Part3 Practice Torrent & IIA-CIA-Part3 Actual Pdf