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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-10-13.q454 Dumps
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Question 96

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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Question 97

During a payroll audit, the internal auditor is assessing the security of the local area network of the payroll department computers. Which of the following IT controls should the auditor test?

Correct Answer: A
Reference: IIA Business Knowledge for Internal Auditing, IT Application Controls section.
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Question 98

In a traditional manufacturing operation, direct costs would normally include:

Correct Answer: C
Direct costs are readily identifiable with and attributable to specific units of production. Wood is a raw material a direct cost) of furniture.
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Question 99

Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange (EDI)?

Correct Answer: A
Reference: IIA Business Knowledge for Internal Auditing, Supply Chain Management section.
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Question 100

Which of the following controls helps protect externally stored sensitive or confidential data from cyberthreats?

Correct Answer: A
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