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Exam Name:	CIA Exam Part Three: Business Knowledge for Internal Auditing
Exam Code:	IIA-CIA-Part3-3P Dumps
Vendor:	IIA	Certification:	CIA
Questions:	488 Q&A's	Shared By:	brooklyn

Question 12

Which of the following statements pertaining to a market skimming pricing strategy is not true?

Options:

The strategy is favored when unit costs fall with the increase in units produced.

The strategy is favored when buyers are relatively insensitive to price increases.

The strategy is favored when there is insufficient market capacity and competitors cannot increase market capacity.

The strategy is favored when high price is perceived as high quality.

Discussion

Question 13

When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

Options:

Identifying risks to the organization's operations.

Observing and analyzing controls.

Prioritizing known risks.

Reviewing organizational objectives.

Discussion

Question 14

A department purchased one copy of a software program for internal use. The manager of the department installed the program on an office computer and then made two complete copies of the original software.

Copy 1 was solely for backup purposes.

Copy 2 was for use by another member of the department.

In terms of software licenses and copyright law, which of the following is correct?

Options:

Both copies are legal.

Only copy 1 is legal.

Only copy 2 is legal.

Neither copy is legal.

Discussion

Question 15

For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?

1) It significantly raises compensation and staffing costs.

2) It produces resentment among the organization's employees in host countries.

3) It limits career mobility for parent-country nationals.

4) It can lead to cultural myopia.

Options:

1 and 4 only

2 and 3 only

1, 2, and 3 only

1, 2, and 4 only

Discussion

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