IIA Certified Internal Auditor - Part 3, Business Analysis and Information Technology IIA-CIA-PART3-3P Dumps in PDF

Free IIA IIA-CIA-PART3-3P Real Questions (page: 20)

An international nonprofit organization finances medical research. The majority of its revenue and support comes from fundraising activities, investments, and specific grants from an initial sponsoring corporation. The organization has been in operation over 15 years and has a small internal audit department. The organization has just finished a major fundraising drive that raised US $500 million for the current fiscal period.
The following are selected data from recent financial statements (US dollar figures in millions):



The auditor wishes to determine if the change in investment income during the current year was due to (a) changes in investment strategy, (b) changes in portfolio mix, or (c) other factors.
Which of the following analytical review procedures should the auditor use?

  1. Simple linear regression that compares investment income changes over the past 5 years to determine the nature of the changes.
  2. Ratio analysis that compares changes in the investment portfolio on a monthly basis.
  3. Trend analysis that compares the changes in investment income as a percentage of total assets and of investment assets over the past 5 years.
  4. Multiple regression analysis that includes independent variables related to the nature of the investment portfolio and market conditions.

Answer(s): D

Explanation:

Regression analysis develops an equation to explain the behavior of a dependent variable (for example, investment income) in terms of one or more independent variables (for example, market risk and the risks of particular investments). Multiple regression analysis is the best approach because it allows the auditor to regress the change in investment income on more than one independent variable.



Which of the following is not an appropriate time series forecasting technique?

  1. Least squares.
  2. Exponential smoothing.
  3. The Delphi technique.
  4. Moving averages.

Answer(s): C

Explanation:

The Delphi technique is an approach in which the manager solicits opinions on a problem from experts, summarizes the opinions, and feeds the summaries back to the experts (without revealing any of the participants to each other). The process is reiterated until the opinions converge on an optimal solution. Thus, the Delphi technique is a qualitative, not a quantitative, method.



A company in the process of analyzing inventory safety stock levels is having difficulty because demand vanes widely from one week to the next. However, it has been discovered that demand occurs according to a probability distribution.
Which of the following is a stochastic model that the company could use in this situation?

  1. Markov process.
  2. Linear programming.
  3. Regression analysis.
  4. Critical path network analysis.

Answer(s): A

Explanation:

A stochastic model is probabilistic. Markov processes quantify the likelihood of a future event based on the current state of the process.



A company experiences both variable usage rates and variable lead times for its inventory items. The probability distributions for both usage and lead times are known. A technique the company could use for determining the optimal safety stock levels for an inventory item is:

  1. Queuing theory.
  2. Linear programming.
  3. Decision tree analysis.
  4. Monte Carlo simulation.

Answer(s): D

Explanation:

Simulation is a technique for experimenting with mathematical models using a computer. Monte Carlo simulation is a technique to generate the individual values for a random variable. A random number generator is used to produce numbers with a uniform probability distribution. The second step of the Monte Carlo process then transforms the random numbers into values consistent with the desired distribution. The performance of a model under conditions of uncertainty may be investigated by randomly selecting values for each of the variables in the model based on the probability distribution of each variable and then calculating the value of the solution. Advantages of Monte Carlo simulation are that time can be compressed, alternative policies can be considered, and complex systems can be analyzed.



A bank is designing an on-the-job training program for its branch managers. The bank would like to design the program so that participants can complete it as quickly as possible. The training program requires that certain activities be completed before others. For example, a participant cannot make credit loan decisions without first having obtained experience in the loan department. An appropriate scheduling technique for this training program is:

  1. PERT/CPM.
  2. Linear programming.
  3. Queuing theory.
  4. Sensitivity analysis.

Answer(s): A

Explanation:

PERT/CPM is a network technique for scheduling interrelated time series activities and identifying any critical paths in the series of activities The critical path is the longest path through the network.



Share your comments for IIA IIA-CIA-PART3-3P exam with other users:

D
Diran Ole
9/17/2023 5:15:00 PM

great exam prep

V
Venkata Subbarao Bandaru
6/24/2023 8:45:00 AM

i require dump

D
D
7/15/2023 1:38:00 AM

good morning, could you please upload this exam again,

A
Ann
9/15/2023 5:39:00 PM

hi can you please upload the dumps for sap contingent module. thanks

S
Sridhar
1/16/2024 9:19:00 PM

good questions

S
Summer
10/4/2023 9:57:00 PM

looking forward to the real exam

V
vv
12/2/2023 2:45:00 PM

good ones for exam preparation

D
Danny Zas
9/15/2023 4:45:00 AM

this is a good experience

S
SM 1211
10/12/2023 10:06:00 PM

hi everyone

A
A
10/2/2023 6:08:00 PM

waiting for the dump. please upload.

A
Anonymous
7/16/2023 11:05:00 AM

upload cks exam questions

J
Johan
12/13/2023 8:16:00 AM

awesome training material

P
PC
7/28/2023 3:49:00 PM

where is dump

Y
YoloStar Yoloing
10/22/2023 9:58:00 PM

q. 289 - the correct answer should be b not d, since the question asks for the most secure way to provide access to a s3 bucket (a single one), and by principle of the least privilege you should not be giving access to all buckets.

Z
Zelalem Nega
5/14/2023 12:45:00 PM

please i need if possible h12-831,

U
unknown-R
11/23/2023 7:36:00 AM

good collection of questions and solution for pl500 certification

S
Swaminathan
5/11/2023 9:59:00 AM

i would like to appear the exam.

V
Veenu
10/24/2023 6:26:00 AM

i am very happy as i cleared my comptia a+ 220-1101 exam. i studied from as it has all exam dumps and mock tests available. i got 91% on the test.

K
Karan
5/17/2023 4:26:00 AM

need this dump

R
Ramesh Kutumbaka
12/30/2023 11:17:00 PM

its really good to eventuate knowledge before appearing for the actual exam.

A
anonymous
7/20/2023 10:31:00 PM

this is great

X
Xenofon
6/26/2023 9:35:00 AM

please i want the questions to pass the exam

D
Diego
1/21/2024 8:21:00 PM

i need to pass exam

V
Vichhai
12/25/2023 3:25:00 AM

great, i appreciate it.

P
P Simon
8/25/2023 2:39:00 AM

please could you upload (isc)2 certified in cybersecurity (cc) exam questions

K
Karim
10/8/2023 8:34:00 PM

good questions, wrong answers

I
Itumeleng
1/6/2024 12:53:00 PM

im preparing for exams

M
MS
1/19/2024 2:56:00 PM

question no: 42 isnt azure vm an iaas solution? so, shouldnt the answer be "no"?

K
keylly
11/28/2023 10:10:00 AM

im study azure

D
dorcas
9/22/2023 8:08:00 AM

i need this now

T
treyf
11/9/2023 5:13:00 AM

i took the aws saa-c03 test and scored 935/1000. it has all the exam dumps and important info.

A
anonymous
1/11/2024 4:50:00 AM

good questions

A
Anjum
9/23/2023 6:22:00 PM

well explained

T
Thakor
6/7/2023 11:52:00 PM

i got the full version and it helped me pass the exam. pdf version is very good.

AI Tutor 👋 I’m here to help!