Ace Your IIA-CIA-Part3-3P CIA Exam

CIA Exam Part Three: Business Knowledge for Internal Auditing Questions and Answers

Question 45

The economic order quantity for inventory is higher for an organization that has:

Lower annual unit sales.

Higher fixed inventory ordering costs.

Higher annual carrying costs as a percentage of inventory value.

A higher purchase price per unit of inventory.

Question 46

Capacity overbuilding is most likely to occur when management is focused on which of the following?

Marketing.

Finance.

Production.

Diversification.

Question 47

Which of the following is a major advantage of decentralized organizations, compared to centralized organizations?

Decentralized organizations are more focused on organizational goals.

Decentralized organizations streamline organizational structure.

Decentralized organizations tend to be less expensive to operate.

Decentralized organizations tend to be more responsive to market changes.

Question 48

Which of the following statements is true regarding the use of public key encryption to secure data while it is being transmitted across a network?

Both the key used to encrypt the data and the key used to decrypt the data are made public.

The key used to encrypt the data is kept private but the key used to decrypt the data is made public.

The key used to encrypt the data is made public but the key used to decrypt the data is kept private.

Both the key used to encrypt the data and the key used to decrypt the data are made private.