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IIA Business Knowledge for Internal Auditing Sample Questions (Q97-Q102):
NEW QUESTION # 97
Refer to the exhibit.
If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?
Answer: A
NEW QUESTION # 98
The loan department of a financial corporation makes loans to businesses. The costs of processing these loans are often several thousand dollars. The costs for each loan, which include labor, telephone, and travel, are significantly different across loans. Some loans require the use of outside services such as appraisals, legal services, and consulting services, whereas other loans do not require these services. The most appropriate cost accumulation method for the loan department of the corporation is:
Answer: A
Explanation:
Job-order costing is used by companies whose products or services are readily identified by individual units or a specific job, each of which receives varying amounts and types of input. The dissimilarity of the various loan services provided make job-order costing appropriate.
NEW QUESTION # 99
In preparing the annual profit plan for the coming year.
Based upon the data derived from the regression analysis, 420 maintenance hours in a month would mean the maintenance costs (rounded to the nearest US dollar) would be budgeted at:
Answer: B
Explanation:
Substituting the given data into the regression equation results in a budgeted cost of US $3,746 (rounded to the nearest US dollar).
y = a + bx = 684.65 + 7.2884(420) = US $3,746
NEW QUESTION # 100
How do data analysis technologies affect internal audit testing?
Answer: C
NEW QUESTION # 101
A major justification for investments in computer-integrated manufacturing CIM) projects is:
Answer: D
Explanation:
Automating and computerizing production processes requires a substantial investment in fined assets and an increase in risk because of greater fixed costs. CI also necessitates an increase in software costs and extensive worker retraining. However, the costs of spoilage, rework, and scrap are reduced along with labor costs. The qualitative advantages of I are increased flexibility, shorter manufacturing lead time, quicker development of new products, better product delivery and service, faster response to market changes, and improved competitiveness.
NEW QUESTION # 102
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