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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-07-07.q379 Dumps
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Question 46

An internal auditor was assigned to test for ghost employees using data analytics. The auditor extracted employee data from human resources and payroll. Using spreadsheet functions, the auditor matched data sets by name and assumed that employees who were not present in each data set should be investigated further.
However, the results seemed erroneous, as very few employees matched across all data sets. Which of the following data analytics steps has the auditor most likely omitted?

Correct Answer: D
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Question 47

When ranking two mutually exclusive investments with different initial amounts, management should give first priority to the project:

Correct Answer: D
The profitability excess present value) index facilitates the comparison of investments that have different initial costs. The profitability index equals the present value of future net cash inflows divided by the initial cash investment. The investment with the greater profitability index will be the preferred investment. However, if investments are mutually exclusive, the net present value method may be the better way of ranking project. The excess present value, index indicates the be return per dollar invested but does not consider the alternate', , possibilities for unused Funds. Thus, the small mutually exclusive projects may have the higher n~ is but the incremental investment in the larger project may make it the better choice. For example, a US $8,000,000 project may be a better use of funds than a combination of a US $6.000.000 project with a higher ,rx and the best alternative use of the remaining US $2,000,000. A company has the following three investment projects available:

The company has a 40% debt and 60% equity capital structure. Each monetary unit of investment funds will be raised in these proportions .40 of debt and .60 of equity). The marginal cost of financing increases with the amount of new funds raised, as follows:

These investment opportunities and financing costs are shown in the graph below:

MCC=Marginal cost of capital IOS=Investment opportunity schedule
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Question 48

An internal auditor has been approved lo gather data directly horn the organization's relational database management system tor data analyse To collect the data which of the Wowing is most important for the auditor to know?

Correct Answer: C
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Question 49

Derivatives that are not hedging instruments are always classified in which category of financial instruments?

Correct Answer: A
Financial assets or liabilities at fair value through profit or loss include those held for trading. Regardless of intent, a financial asset is held for trading if it is included in a portfolio with a recent pattern of short-term profit taking. Derivatives also are deemed to be held for trading unless they are designated and effective as hedging instruments.
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Question 50

An organization's balance sheet indicates that the total asset amount and the total capital stock amount remained unchanged from one year to the next, and no dividends were declared or paid. However, the organization reported a loss of $200,000. Which of the following describes the most likely year-over-year change to the organization's total liabilities and total stockholder equity?

Correct Answer: A
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