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The IIA-CIA-Part3 Exam, also known as Business Knowledge for Internal Auditing, is an essential certification exam for internal auditors who want to demonstrate their extensive knowledge and skills in the field. This exam is conducted by the Institute of Internal Auditors (IIA) and is a crucial step towards obtaining the Certified Internal Auditor (CIA) designation. The IIA-CIA-Part3 Exam is designed to assess the candidate's understanding of business concepts, including risk management, organizational structure, governance, and financial management.

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The IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Certification Exam is a globally recognized certification program designed for internal auditors who want to enhance their knowledge of business operations and gain a deeper understanding of the internal audit process. The exam covers a range of topics, including financial management, strategic planning, risk management, and corporate governance. It is an essential certification for professionals who wish to advance their careers in internal auditing.

The IIA-CIA-Part3 exam consists of 100 multiple-choice questions, which must be completed within a three-hour time limit. To pass the exam, candidates must achieve a minimum score of 600 out of 800 possible points. The exam is computer-based and can be taken at any time of year, at a testing center or online.

IIA Business Knowledge for Internal Auditing Sample Questions (Q114-Q119):

NEW QUESTION # 114
Several surveys paint out that most managers use full product casts, including unit fixed casts and unit variable costs, in developing cast-based pricing. Which one of the following is least associated with cost-based pricing?

A. Fixed-cost recovery.B. Target pricing.C. Price justification.D. Price stability.

Answer: B

Explanation:
A target price is the expected market price of a product, given the company's knowledge of its customers and competitors. Hence, under target pricing, the sales price is known before the product is developed. Subtracting the unit target profit margin determines the long-term unit target cast. If cost-cutting measures do not permit the product to be made at or below the target cast, it will be abandoned.

NEW QUESTION # 115
Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?

A. We provide climate control in the home.B. We supply energy.C. We are a people-and-goods mover.D. We make movies.

Answer: D

NEW QUESTION # 116
Listed below are selected line items from the cost-of-quality report for Company B for last month.

What is Company B's total prevention and appraisal cost for last month?

A. US$786B. US$1,154C. US$2,665D. US$1,940

Answer: D

Explanation:
Prevention costs are incurred to prevent defects from occurring. An example is equipment maintenance. Appraisal costs are incurred to detect defective output during and after the production process. An example is product testing. Thus, total prevention and appraisal cost for the month equals US $1,940 (US $1,154 +US $786).

NEW QUESTION # 117
Which of the following is considered a physical security control?

A. System servers are secured by locking mechanisms with access granted to specific individuals.B. Transaction logs are maintained to capture a history of system processing.C. Failed system login attempts are recorded and analyzed to identify potential security incidents.D. System security settings require the use of strong passwords and access controls.

Answer: A

NEW QUESTION # 118
An organization is considering integration of governance, risk., and compliance (GRC) activities into a centralized technology-based resource. In implementing this GRC resource, which of the following is a key enterprise governance concern that should be fulfilled by the final product?

A. Compliance, audit, and risk management can find and seek efficiencies between their functions through integrated information reporting.B. The board should be fully satisfied that there is an effective system of governance in place through accurate, quality information provided.C. Data analytics can be utilized for trending of the data to ensure that patterns and ongoing monitoring occurs throughout the organization.D. Key compliance and risk metrics can be tracked and compared throughout the enterprise, aiding in identifying problem departments.

Answer: B

NEW QUESTION # 119
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