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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 146

Which inventory pricing method generally approximates current cost for each of the following?

Correct Answer: C
FIFO assigns the most recent purchase prices to ending inventory and the earliest purchase prices to cost of goods sold. LIFO uses the earliest acquisition costs to price the ending inventory. It is not permitted by the IFRSs. Thus, FIFO approximates current for ending inventory, and LIFO approximates current cost of goods sold.
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Question 147

To reduce security exposure when transmitting proprietary data communication lines, a company should use:

Correct Answer: D
Encryption involves using a fixed algorithm to manipulate plaintext The information is sent in its manipulated form and the receiver translates the information back into plain text. Cryptographic devices protect data in transmission over communication lines.
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Question 148

While conducting' audit procedures at the organization's data center an internal auditor noticed the following:
- Backup media was located on data center shelves.
- Backup media was organized by date.
- Backup schedule was one week in duration.
The system administrator was able to present restore logs.
Which of the following is reasonable for the internal auditor to conclude?

Correct Answer: B
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Question 149

Which of the following best describes the purpose of fixed manufacturing costs?

Correct Answer: D
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Question 150

Refer to the exhibit.

If the profit margin of an organization decreases, and all else remains equal, which of the following describes how the "Funds Needed" line in the graph below will shift?

Correct Answer: C
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