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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2024-06-15.q282 Dumps
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Question 76

A large hospital has an existing contract with a vendor in another country to provide software support and maintenance of the hospital's patient records information system. From the hospital management's perspective, which of the following controls would be most effective to address privacy risks related to this outsourcing arrangement?

Correct Answer: D
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Question 77

According to HA guidance or IT which of the following spreadsheets is most likely to be considered a high-risk user-develop application?

Correct Answer: B
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Question 78

Which of the following statements about slack time and milestones are true?
1. Slack time represents the amount of time a task may be delayed without delaying the entire project.
2. A milestone is a moment in time that marks the completion of the project's major deliverables.
3. Slack time allows the project manager to move resources from one task to another to ensure that the project is finished on time.
4. A milestone requires resource allocation and needs time to be completed.

Correct Answer: C
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Question 79

An entity uses the retail method of inventory estimation for interim reporting purposes.
Management expects some normal shrinkage in the inventory because of theft. What effect will the failure to consider this shrinkage have on the computation of1) the cost retail ratio, and2) the estimated ending inventory at retail?

Correct Answer: B
The retail method of inventory estimation applies a cost-retail ratio to the ending inventory at retail to determine ending inventory at cost For example, a popular method calculates the ratio as goods available for sale at cost divided by goods available at retail, with markups but not markdowns included in the calculation of the retail amount. Normal inventory is subtracted from the retail amount of goods available because are not available. However, abnormal amounts of theft, etc., are removed from the cost and retail amounts. The reason for the difference in treatment is that normal but not abnormal inventory losses are anticipated and included in the selling retail value). Accordingly, failure to account for normal inventory shrinkage has no effect on the calculate cost-retail ratio but overstates ending inventory at retail.
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Question 80

During its first year of operations, a company produced 275.000 units and sold 250.000 units The following costs were incurred during the year:

The differences between operating profit calculated on the absorption-costing basis and on
the variable-costing basis is that absorption-costing operating profit is

Correct Answer: A
Absorption-costing operating profit will exceed variable-costing operating income because production exceeds sales, resulting in a deferral of fixed manufacturing overhead in the inventory calculated using the absorption method. The difference of US $200,000 is equal to the fixed manufacturing overhead per unit US $2,200,000 -275,000 = US $8.00) times the difference between production and sales 275,000 -250,000 = 25,000, which is the inventory change in units).
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