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IIA CIA Exam Part Three: Business Knowledge for Internal Auditing Sample Questions (Q47-Q52):
NEW QUESTION # 47
According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?
- A. Management must review the quality policy, analyze data about quality management system performance, and assess opportunities for improvement and the need for change.
- B. The quality management system must be documented in the articles of incorporation, quality manual, procedures, work instructions, and records.
- C. The entity must have processes for inspections, testing, measurement, analysis, and improvement.
- D. Key processes across the entity which impact quality must be identified and included.
Answer: B
NEW QUESTION # 48
Which of the following concepts of managerial accounting is focused on allocating overheads to products?
- A. Just-in-time method
- B. Theory of constraints
- C. Break-even analysis
- D. Activity-based costing
Answer: D
NEW QUESTION # 49
Which of me following is true of matrix organizations?
- A. It is best suited for firms with scattered locations or for multi-lira. large-scale firms
- B. A combination of product and functional departments allows management lo utilize personnel from various functions
- C. A unity-of-command concept requires employees to report technically, functionally, and administratively to the same manager
- D. Authority responsibility and accountability of the units involved may vary based on the project's life, or the organization's culture
Answer: B
NEW QUESTION # 50
In which of the following scenarios would transfer pricing be used?
- A. Company A owns both Company B and Company C; all three companies sell goods to the public.
- B. Company A owns Company B; Company B sells goods to Company
- C. Company A moves goods internally from one location to another.
- D. Company A does not own Company
Company A charges Company B a fee to sell Company B's goods without taking ownership of the goods.
Answer: B
NEW QUESTION # 51
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?
- A. Risk sharing.
- B. Risk avoidance.
- C. Risk acceptance.
- D. Risk reduction.
Answer: D
NEW QUESTION # 52
......
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