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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 351

If the bank uses the minimax regret criterion for selecting the location of the branch, it will select:

Correct Answer: B
Under the minimax regret criterion, the decision maker selects the choice that minimizes the maximum regret (opportunity cost). The maximum regret for each location is determined from the opportunity loss matrix.
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Question 352

On December 31, Year 1, Health entities reported a US $150,000 warranty expense in its income statement. The expense was based on actual warranty cost of US$30,000 in Year 1 and expected warrant costs of US $35,000 in Year 2, US $40,000 in Year 3, and US $45,000 in Year 4. For tax purposes, warrant costs are not deductible until paid. At December 31, Year 1, deferred taxes should be based on a:

Correct Answer: A
At year-end year 1, Health entities should report a US $120,000 warranty liability in its balance sheet. The warranty liability is equal to the US $150,000 warranty expense minus the US $30,000 warrant cost actually incurred in Year 1. Because warranty costs are not deductible until paid, the tax base of the warranty liability is 0. The result is a US $120,000 temporary difference US$120,000 carrying amount tax base). When the liability is settled through the actually incurrence of warranty costs, the amounts will be deductible. Thus, the temporary difference should be classified as a deductible temporary difference.
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Question 353

A manager has difficulty motivating staff to improve productivity, despite establishing a lucrative individual reward system. Which of the following is most likely the cause of the difficulty?

Correct Answer: B
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Question 354

According to IIA guidance, which of the following corporate social responsibility (CSR)
evaluation activities may be performed by the internal audit activity?
1.Consult on CSR program design and implementation.
2.Serve as an advisor on CSR governance and risk management.
3.Review third parties for contractual compliance with CSR terms.
4.Identify and mitigate risks to help meet the CSR program objectives.

Correct Answer: A
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Question 355

Which of the following is the most appropriate test to assess the privacy risks associated with an organization's workstations?

Correct Answer: B
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