Expert Answers to IIA Exam IIA-CIA-Part3 Questions

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CIA Internal Audit Function

Internal Audit Function

Last Update Aug 4, 2026
Total Questions : 791

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Questions 2

Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

Options:

The organization sells inventory to an overseas subsidiary at fair value.

The local subsidiary purchases inventory at a discounted price.

The organization sells inventory to an overseas subsidiary at the original cost.

The local subsidiary purchases inventory at the depreciated cost.A

Discussion 0

Questions 3

A retail organization mistakenly did have include $10,000 of Inventory in the physical count at the end of the year. What was the impact to the organization ' s financial statements?

Options:

Cost of sales and net income are understated.

Cost of sales and net income are overstated.

Cost of sales is understated and not income is overstated.

Cost of sales is overstated and net Income is understated.

Discussion 0

Questions 4

The manager of the sales department wants to Increase the organization ' s net profit margin by 7% (from 43% in the prior year to 50% in the current year). Given the information provided in the table below, what would be the targeted sales amount for the current year?

Questions 4

Options:

$20,000,000

$24.500.000

$30.000.000

$35.200.000

Discussion 0

Questions 5

An organization decided to invest in new office equipment for $320,000. The estimated useful life of the equipment is four years. The residual value will be $40,000. The depreciation method is straight-line. The new equipment will allow the organization to save $150,000 per year. The estimated tax rate used in the organization is 30 percent. The required rate of return is 15 percent.

The following are present values of $1 during four years for 15 percent:

Year 1 = $0.87

Year 2 = $0.76

Year 3 = $0.66

Year 4 = $0.57

What is net present value of this investment?

Options:

$71,140

$63,160

$40,360

$3,100

Discussion 0

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