IIA-CIA-Part3 Free Practice Test

- (Exam Topic 1)
Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:

1. A. Motivation.
2. B. Performance.
3. C. Organizational structure.
4. D. Communication.

Correct Answer: D

- (Exam Topic 1)
Which of the following statements is true regarding outsourced business processes?

1. A. Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.
2. B. Generally, independence is improved when the internal audit activity reviews outsourced business processes.
3. C. The key controls of outsourced business processes typically are more difficult to audit because they are designed and managed externally.
4. D. The system of internal controls may be better and more efficient when the business process is outsourced compared to internally sourced.

Correct Answer: D

- (Exam Topic 1)
During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

1. A. $170,000
2. B. $280,000
3. C. $300,000
4. D. $540,000

Correct Answer: A

- (Exam Topic 2)
An organization has a total asset turnover of 3.0 times and a total debt-to-total assets ratio of 80 percent. If the organization has total debt of $1 000 000 what is the organization's sales level?

1. A. $266.667
2. B. $416,667
3. C. $3.750.000
4. D. $5 000.000

Correct Answer: C

- (Exam Topic 1)
The cost to enter a foreign market would be highest in which of the following methods of global expansion?

1. A. Joint ventures.
2. B. Licensing.
3. C. Exporting.
4. D. Overseas production.

Correct Answer: D