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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2023-01-15.q275 Dumps
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Question 1

The primary reason for adopting TOM was to achieve:

Correct Answer: A
TOM is an integrated system that anticipates, meets, and exceeds customers needs, wants, and expectations. The management and employees of a large household goods moving company decided to adopt total quality management TOM) and continuous improvement CI). The company believes that if it became nationally known as adhering to TOM and CI, one result would be an increase in the company's profits and market share.
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Question 2

An inventory planning method that minimizes inventories by arranging to have raw materials and subcomponents arrive immediately preceding their use is called:

Correct Answer: C
JIT is a manufacturing philosophy popularized by the Japanese that combines purchasing, production, and inventory control. As with MRP. minimization of inventory is a goal; however. JIT also encompasses changes in the production process itself. An emphasis on quality and a "pull" of materials related to demand are key differences between JIT and MRP. The factory is organized so as to bring materials and tools close to the point of use rather than keeping them in storage areas. A key element of the JIT system is reduction or elimination of waste of materials, labor, factory space, and machine usage. Minimizing inventory is the key to reducing waste. When a part is needed on the production line, it arrives just in time, not before. Daily deliveries from suppliers are the ultimate objective, and some Japanese users have been able to get twice-daily deliveries.
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Question 3

Which of following best demonstrates the application of the cost principle?

Correct Answer: A
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Question 4

An investment company is attempting to allocate its available funds between two investment alternatives, equities and bonds, which differ in terms of expected return and risk. The company would like to minimize its risk while earning an expected return of at least 10% and investing no more than 70% in either of the investment alternatives. An appropriate technique for allocating its funds between equities and bonds is:

Correct Answer: A
Linear programming is a mathematical technique for planning resource allocation that optimizes a given objective function that is subject to certain constraints. In this case, the maximum investment is constrained by a 70% limit on either investment choice.
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Question 5

When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

Correct Answer: B
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