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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 196

Which of the following is the most likely reason an organization may decide to undertake a stock split?

Correct Answer: A
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Question 197

Division A produces a product with a variable cost of $5 per unit and an allocated fixed cost of S3 per unit The market price of the product is S15 plus 20 percent selling cost. Division B currently purchases this product from an external supplier but is going to purchase it from division A for S18 Which of the following methods of transfer pricing is being used?

Correct Answer: A
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Question 198

The current generation of ERP software ERP II) has added such front-office functions as:

Correct Answer: D
The current generation of ERP software EPP II) has added front-office functions.
Customer relationship management applications in ERP II extend to customer service, finance-related matters, sales, and database creation and maintenance. Integrated data are helpful in better understanding customer needs, such as product preference or location of retail outlets. Thus, the organization may be able to optimize its sales forecasts, product line, and inventory levels.
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Question 199

An automobile and personal property insurer has decentralized its information processing to the extent that headquarters has less processing capacity than any of its regional processing centers. These centers are responsible for initiating policies, communicating with policyholders, and adjusting claims. The company uses leased lines from a national telecommunications company. Initially, the company thought there would be little need for interregional communication, but that has not been the case. The company underestimated the number of customers that would move between regions and the number of customers with claims arising from accidents outside their regions. The company has a regional center in an earthquake-prone area and is planning how to continue processing if that center, or any other single center, were unable to perform its processing. The company considered mirroring the data stored at each regional center at another center. A disadvantage of such an arrangement is:

Correct Answer: B
If data stored at one regional center is to mirror the data stored at another center, the most efficient method to ensure each center has the most current data is to transfer data across a network. Consequently, the cost of network traffic would increase dramatically.
The complexity of the network would also increase as the network would need to provide a great deal of security when transferring data.
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Question 200

Rejection of unauthorized modifications to application systems could be accomplished through the use of:

Correct Answer: C
General controls include organizational controls, such as a policy an implementation control) that requires new programs and changes in programs after adequate testing) to be formally approved before being put into operation implemented). This policy is reflected in the maintenance of approval and change sheets with appropriate authorizations.
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