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IIA-CIA-Part3 exam is a three-hour computer-based test that consists of 100 multiple-choice questions. IIA-CIA-Part3 exam is administered at Pearson VUE test centers around the world. IIA-CIA-Part3 exam is designed to test the candidate's knowledge of business processes, financial management, risk management, and governance. Candidates who pass the exam are awarded the Certified Internal Auditor (CIA) designation.

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IIA-CIA-Part3 (Business Knowledge for Internal Auditing) Certification Exam is a globally recognized certification program designed for internal auditors who want to enhance their knowledge of business operations and gain a deeper understanding of the internal audit process. IIA-CIA-Part3 Exam covers a range of topics, including financial management, strategic planning, risk management, and corporate governance. It is an essential certification for professionals who wish to advance their careers in internal auditing.

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IIA Business Knowledge for Internal Auditing Sample Questions (Q173-Q178):

NEW QUESTION # 173
If an entity employs the sum-of-the-years'-digits SYD method of depreciation for an asset with an estimated useful life of 4 years, the percentage of the total depreciable cost that will be expensed in the third year is:

A. 70%
B. 20%
C. 10%
D. 25%

Answer: B

Explanation:
Under the SYD method, the amount of the depreciable cost that is expensed each year is the remaining useful life at the beginning of that year divided by the sum of the years of useful life. For the third year, the portion expensed is 20% [2 .1 + 2 + 3 + 4)].

NEW QUESTION # 174
The U.S. dollar amount of the costs of quality classified as prevention costs for the manufacturing firm would be:

A. US$701,000
B. US$736,000
C. US$643,000
D. US$768,000

Answer: A

Explanation:
Prevention costs are incurred to prevent defects. Examples are the costs of employee training, review of equipment design, preventive maintenance, and evaluation of suppliers. Accordingly, the prevention costs equal US $701,000 ($275,000 design reviews + $180,000 process engineering + $90,000 scheduled maintenance + $156,000 training).

NEW QUESTION # 175
The use of derivatives to either hedge or speculate results in:

A. Increased risk regardless of motive.
B. Decreased risk regardless of motive.
C. Offset risk when speculating and increased risk when hedging.
D. Offset risk when hedging and increased risk when speculating.

Answer: D

Explanation:
Derivatives, including options and futures, are contracts between the parties who contract. Unlike stocks and bonds, they are not claims on business assets. A futures contract is entered into as either a speculation or a hedge. Speculation involves the assumption of risk in the hope of gaining from price movements. Hedging is the process of using offsetting commitments to minimize or avoid the impact of adverse price movements.

NEW QUESTION # 176
In a critical path analysis, if slack time in an activity exists, the activity:

A. Is a backup activity to replace a main activity should it fail.
B. Is not essential to the overall project.
C. Involves essentially no time to complete.
D. Could be delayed without delaying the overall project.

Answer: D

Explanation:
Slack is the free time associated with each activity. In other words, paths that are not critical have slack time. Slack represents unused resources that can be diverted to the critical path.

NEW QUESTION # 177
According to IIA guidance, which of the following corporate social responsibility (CSR) evaluation activities may be performed by the internal audit activity?
1. Consult on CSR program design and implementation.
2. Serve as an advisor on CSR governance and risk management.
3. Review third parties for contractual compliance with CSR terms.
4. Identify and mitigate risks to help meet the CSR program objectives.

A. 1, 2, and 4
B. 1, 3, and 4
C. 1, 2, and 3
D. 2, 3, and 4

Answer: C

NEW QUESTION # 178
......

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IIA IIA-CIA-Part3 Dumps [2025]–Everything You Need to Know IIA-CIA-Part3 Exam Questions

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IIA Business Knowledge for Internal Auditing Sample Questions (Q173-Q178):

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