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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 366

The internal auditor found that the purchasing department has a policy of setting all purchasing lead times to the highest number of days experienced within each product subassembly}, even though some subassemblies required 3 or more months to complete. To address the objective of reducing inventory holding costs related to this policy, the internal auditor should focus on:

Correct Answer: A
The effect of this policy is to increase inventory holding carrying) costs. Using the longest lead time avoids stock out costs but ensures that many items will be delivered long before they are needed.
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Question 367

Which of the following bring-your-own-device (BYOD) practices is likely to increase the risk of infringement on local regulations, such as copyright or privacy laws?

Correct Answer: D
Comprehensive and Detailed In-Depth Explanation:
Jailbreaking a locked smart device (removing manufacturer-imposed restrictions) increases the risk of infringing on copyright and privacy laws, as it allows unauthorized access to software and applications.
Option A (Not installing anti-malware software) - Increases security risks but does not directly violate regulations.
Option B (Haphazard OS updates) - Can lead to vulnerabilities but is not a legal issue.
Option C (Weak passwords) - Poses a security threat but does not impact compliance with laws.
Since jailbreaking often violates software licenses and may lead to illegal use of software, Option D is the correct answer.
Reference: IIA IT Security & BYOD Compliance Standards
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Question 368

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: B
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Question 369

The calculation of an economic order quantity EOQ) considers:

Correct Answer: D
The determination of the economic order quantity balances the variable costs of ordering and carrying inventory. Factors in the equation include the cost of placing an order, unit carrying cost, and annual demand in units. Carrying costs include storage costs, handling costs, insurance, property takes, obsolescence, and the opportunity cost of investing capital in inventory. Thus, the return on capital that is forgone when it is invested in inventory should be considered.
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Question 370

Data access security related to applications may be enforced through all of the following except:

Correct Answer: B
Utility programs perform routine functions e.g.. sorting and copying), are available to all users, and are promptly available for many different applications. Utility programs are one of the more serious weaknesses in data access security because some can bypass normal access controls.
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