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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2022-03-14.q256 Dumps
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Question 241

Which of the following is a primary driver behind the creation and prioritization of new strategic initiatives established by an organization?

Correct Answer: B
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Question 242

Market-skimming pricing strategies could be appropriate when:

Correct Answer: A
Market-skimming pricing is used when a new product is introduced at the highest price possible given the benefits of the product. For market skimming to work, the product must appear to be worth its price, the costs of producing a small volume cannot be so high that they eliminate the advantage of charging more, and competitors cannot enter the market and undercut the price.
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Question 243

A carpet manufacturer maintains a retail division consisting of stores stocking its brand and other brands, and a manufacturing division that makes carpets and pads. An outside market exists for carpet padding material in which all padding produced can be sold. The proper transfer price for padding transferred from the manufacturing division to the retail division is:

Correct Answer: D
The three basic criteria that the transfer pricing system in a decentralized company should satisfy are to 1) provide information allowing central management to evaluate divisions with respect to total company profit and each division's contribution to profit, 2) stimulate each manager's efficiency without losing each division's autonomy, and 3) motivate each divisional manager to achieve his/her own profit goal in a manner contributing to the company's success. The market price should be used as the transfer price to avoid waste and maximize efficiency in a competitive economy an outside market in which all padding produced can be sold). This price also measures the product's profitability and the division managers' performance in a competitive environment.
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Question 244

Which of the following are critical risk and control issues that an internal auditor must address?
I Rapid technology changes
II Maintenance of transaction integrity
III. Website content review and approval
IV.
Changes to organizational structures

Correct Answer: D
Some of the more critical risk and control issues to be addressed by the internal auditor are
General project management risks
Specific security threats, such as denial of service, physical attacks, viruses, identity theft, and unauthorized access or disclosure of data
Maintenance of transaction integrity under a complex network of links to legacy systems and data warehouses
Website content review and approval when there are frequent changes and sophisticated customer features and capabilities that offer around-the-clock service
Rapid technology changes
Legal issues, such as increasing regulations throughout the world to protect individual privacy, enforceability of contracts outside of the organization's country, and tax and accounting issues Changes to surrounding business processes and organizational structures
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Question 245

Which of the following should an organization consider when developing strategic objectives for its business processes?
1. Contribution to the success of the organization.
2. Reliability of operational information.
3. Behaviors and actions expected of employees.
4. How inputs combine with outputs to generate activities.

Correct Answer: D
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