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IIA Business Knowledge for Internal Auditing Sample Questions (Q77-Q82):

NEW QUESTION # 77
An audit manager has just returned from an executive training program and has suggested that the audit department develop a mathematical model to help identify factors that may be causing changes in the cost of production. According to the manager, the model should recognize that the company currently has three separate production (cost) centers.
Which of the following approaches would best provide the analysis suggested by the audit manager?

A. Develop a linear regression analysis relating the cost of production to the cost of goods sold.
B. Develop a 3-year ratio analysis of the cost of production compared to the cost of raw inventory across the three departments.
C. Develop a multiple regression analysis of production costs, including such variables as raw material inventory costs, number of employees in the department, and overtime pay.
D. Develop a classical variables sampling estimate of cost of production per department, with the sample stratified by the dollar value of each product produced.

Answer: C

Explanation:
Regression analysis extends correlation to find an equation for the linear relationship among variables. The behavior of a dependent variable, such as cost of production, is explained in terms of one or more independent variables (for example, raw material costs, employees, overtime). Thus, multiple regression analysis determines functional relationships among quantitative variables.

NEW QUESTION # 78
If the bank uses the rnaxirna criterion for selecting the location of the branch, it will select:

A. L3
B. L4
C. L1
D. L2

Answer: B

Explanation:
Under the maximax criterion, the decision maker selects the choice that maximizes the maximum profit. The maximum profits for the five locations are

A bank plans to open a branch in one of five locations labeled L1, L2, L3, L4, L5). Demand for bank services may be high, medium, or low at each of these locations. Profits for each location-demand combination are presented in the payoff matrix.

NEW QUESTION # 79
Which of the following computer hardware devices allows for an immediate update of merchandise inventory in a retail environment?

A. Monitor.
B. Point-of-sale terminal.
C. Video display terminal.
D. Inventory control terminal.

Answer: B

Explanation:
Point-of-sale terminals capture data by optical scanning or by keying. The data are then transmitted to a CPU. The system permits collection of sales data, updating and ordering of inventory, pricing at the point of sale, and checking of customer credit cards.

NEW QUESTION # 80
Which of the following statements regarding database management systems is not correct?

A. The data within the database management system can only be manipulated directly by the database management system administrator.
B. Applications pass on the instructions for data manipulation which are then executed by the database management system.
C. The database management system acts as a layer between the application software and the operating system.
D. Database management systems handle data manipulation inside the tables, rather than it being done by the operating system itself in files.

Answer: A

NEW QUESTION # 81
To trace data through several applies qti on programs, an auditor needs to know what programs use the data, which files contain the data, and which print-td reports display the data. If data exist only in a database system, the auditor could probably find all of this information in a

A. Data dictionary.
B. Database schema.
C. Data encryptor.
D. Decision table.

Answer: A

Explanation:
The data dictionary is a file possibly manual but usually computerized) in which the records relate to specified data items. It contains definitions of data items, the list of programs used to process them, and the reports in which data are found. Only certain persons or entities are permitted to retrieve data or to modify data items. Accordingly, these access limitations are also found in the data dictionary.

NEW QUESTION # 82
......

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100% Pass 2025 IIA IIA-CIA-Part3: Business Knowledge for Internal Auditing–Efficient Latest Exam Practice

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IIA Business Knowledge for Internal Auditing Sample Questions (Q77-Q82):

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