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IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Sample Questions (Q32-Q37):

NEW QUESTION # 32
Which of the following statements accurately describes one of the characteristics that distinguishes a multinational company from a domestic company?

A. A multinational company uses raw materials and components from more than one country.B. A multinational company exports its products to other countries.C. A multinational company has stockholders in other countries.D. A multinational company operates outside of its country of origin.

Answer: D

NEW QUESTION # 33
A capital investment project will have a higher net present value, everything else being equal, if it has:

A. Cash inflows that are larger in the later years of the life of the project.B. Cash inflows that are larger in the earlier years of the life of the project.C. A higher initial investment level.D. A higher discount rate.

Answer: B

NEW QUESTION # 34
Which of the following statements is most accurate with respect to various forms, elements, and characteristics of business contracts?

A. A contract is a tool used by both suppliers and customers though it offers commercial assurance of the relationship, purely from a customer perspectiveB. Collaboration during contract negotiation encourages stakeholders to develop consensus but typically increases cycle times and the likelihood that the contract will failC. Differing legal requirements affect the attitudes of contracting parties as well as the length content and language of contractsD. A contract is a tool used by both suppliers and customers, the model and complexity of which generally remains constant

Answer: C

NEW QUESTION # 35
The process of scenario planning begins with which of the following steps?

A. Identifying how customers, suppliers, competitors, employees, and other stakeholders will react.B. Determining the trends that will influence key factors in the organization's environment.C. Selecting leading indicators to alert the organization of future developments.D. Selecting the issue or decision that will impact how the organization conducts future business.

Answer: D

NEW QUESTION # 36
An organization with an annual demand of 25.000 units correctly computes its economic order quantity to be 1,000 units Its safety stock is 300 units and the lead time is two days If there are 250 production days in a year what is the reorder point1?

A. 200 units.B. 500 units.C. 1,000 units.D. 300 units.

Answer: B

NEW QUESTION # 37
......

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