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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 31

An organization prepares a statement of privacy to protect customers' personal information. Which of the following might violate the privacy principles?

Correct Answer: B
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Question 32

Which of the following application controls can be defined as controls that monitor data Being processed and in storage to ensure it remains consistent and correct?

Correct Answer: B
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Question 33

The amortization of intangible assets with finite useful lives is justified by the:

Correct Answer: B
Every business is assumed to be a going concern that will continue operating indefinitely. Thus liquidation values are not important. For example if an entity is not a going concern, its intangible assets are reported at liquidation values, not at historical cost net of amortization.
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Question 34

On January 2, Year 1, Kine Co. granted Morgan, its preside -I t. share options to buy 1.000 shares of Kine's US $10 per ordinary stock. The options call for a price of US$20 per share and are exercisable for 3 years following the grant date. Morgan exercised the options on December 31, Year 1. The market price of the shares was US $50 on January 2, Year 1, and US $70 on the following for December 31. The market price of the shares is followed because the fair value of the option is not reliable measurable, by what net amount should equity increased as a result of the grant and exercise of the options?

Correct Answer: A
The measurements January 2, Year 'I_ At that date, the intrinsic value of the options is US $30.000 [1,000 shares$50 market price -$20 option price)]. This US $30,000 will be recorded as both compensation expense and options outstanding. The net effect on equity is 0. When the options are exercised the US $20,0001.000 shares $20 option price)]. This US $30,000 will be recorded as both compensation expense and options outstanding will be allocated to share capital as US $30,000 of options are exercised, the US $ 20,0001,000 shares x $20 exercise price) cash received and the US $30,000 of options are exercised price) cash received and the US $30,000 of options outstanding will be allocated to share capital as US $10,000 ordinary stock and US $40,000 additional paid in capital. The net effect on equity will be a US $20,000 increase.
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Question 35

Which of the following designations refers to taxes that will not necessarily take a larger absolute amount of income as income rises?

Correct Answer: C
Regressive taxes are those for which the average tax rate falls as income rises. They take a smaller percentage of income as income rises, so they will not necessarily take a larger absolute amount of income as income rises.
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