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  3. CIA-III

Financial CIA-III Exam (page: 56)
Financial The Certified Internal Auditor Part 3
Updated on: 17-Feb-2026

Viewing Page 56 of 312
CIA-III PDF 1554 Questions

As of week 8, the Gantt chart shows that the project is:

  1. Complete.
  2. Ahead of schedule.
  3. On schedule.
  4. Behind schedule.

Answer(s): B

Explanation:

Assuming that 1) each of the bars represents the expected time necessary to complete an activity and 2) the shaded regions represent the portions completed, activity A has been completed as scheduled and activities B and C are ahead of schedule. Consequently, the project is ahead of schedule.



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?

  1. b ­ a) =2
  2. a + b) =2
  3. a + 4m +b) =6
  4. 4 abm) =6

Answer(s): C

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.



The process of adding resources to shorten selected activity times on the critical path in project scheduling is called:

  1. Crashing.
  2. The Delphi technique.
  3. ABC analysis.
  4. A branch-and-bound solution.

Answer(s): A

Explanation:

Activity times are estimated for normal effort and crash effort. Crashing is the process of adding resources to shorten activity times on the critical path in project scheduling. The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc. are presented below. The numbers in the diagram are the expected times in days) to perform each activity in the project.



The expected time of the critical path is:

  1. 12.0 days.
  2. 13.0 days.
  3. 11.5 days.
  4. 11.0 days.

Answer(s): B

Explanation:

The critical path is the longest path. The longest path in the diagram is A-D-E, which requires 13 days 5.5 + 7.5) based on expected times. The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc. are presented below. The numbers in the diagram are the expected times in days) to perform each activity in the project.



To keep costs at a minimum and decrease the completion time by 1-1/2 days, Networks, Inc.
should crash activity)

  1. AD and AB.
  2. DE.
  3. AD.
  4. AB and CE.

Answer(s): A

Explanation:

The critical longest) path is A-D-E, which has an expected time of 13 days 5.5 +7.5). However, to decrease the project's completion time by 1.5 days, paths A-B-C-E 4.5 + 1.0 + 6.5 = 12 days) and A-B-D-E 4.5 + .5 + 7.5 = 12.5 days) as well as A-D-E must also be shortened. Hence, A-D-E must be reduced by 1.5 days, A-B-C-E by .5 day, and A-B-D-E by 1.0 day. The only way to decrease A-D-E by 1.5 days is to crash activity. AD 5.5 expected time - 4.0 crash time = 1.5 days). Crashing DE results in a 1.0-day saving 7.5 -- 6.5) only.
Crashing AB is the efficient way to reduce both A-B-C-E and A-B-D-E by the desired amount of time because it i s hart of both paths. The incremental cost of crashing AB is U $1,000 US $4,000 crash cost -- US $3,000 normal cost) to shorten the completion time by 1.0 day 4.5 -- 3.5). The alternatives for decreasing both A-B-C-E and A-B-D-E are more costly.



Viewing Page 56 of 312



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