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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-01-02.q249 Dumps
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Question 171

Because changes in accounting estimates relate to changes in circumstances in the [List A] period, they should be reported [List B]_ List A List B:

Correct Answer: B
Changes in accounting estimates arise as new events occur, as more experience is obtained, or as additional evidence is acquired. A change should be reported in the period in which it occurs, as well as prospectively if future periods are effected. Retroactive reporting is impracticable because of it would result in continual adjustments of prior years' financial statements.
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Question 172

A nation has a progressive tax structure with income tax brackets that are not indexed to inflation. An individual taxpayer experiences an income increase just equal to the general inflation rate moves into a higher tax bracket. The individual taxpayer will then experience List A- nominal taxes payable and- List B- real taxes payable.

Correct Answer: A
Because the taxpayer's income increase equal to the general inflation rate, no real no real increase in income has occurred. However, some or all of the increase is subject to a higher tax rate. Accordingly the taxpayer will experience an increase in both nominal taxes payable and in real taxes payable.
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Question 173

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

Correct Answer: B
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Question 174

Which of the following is not true about the advantages of adopting ISO 9000 standards?

Correct Answer: C
Market pressure is usually the primary reason that entities adopt ISO 9000 standards. However, many entities that register make internal process and quality improvement as a result. ISO 9000 forces entities to share information, which leads to a better understanding of who internal customers and users are.
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Question 175

A client communicates sensitive data across the Internet. Which of the following controls would be most effective to prevent the use of the information if it were intercepted by an unauthorized part?

Correct Answer: D
Encryption technology converts data into a code. Encoding data before transmission over communications lines makes it more difficult for someone with access to the transmission to understand or modify its contents.
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