Examcollection IIA-CIA-Part3 Free Dumps - IIA-CIA-Part3 Valid Test Practice
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IIA Business Knowledge for Internal Auditing Sample Questions (Q329-Q334):
NEW QUESTION # 329
The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:
- A. Eliminate the need for an allowance for doubtful accounts.
- B. Use a method that approximates the matching principle.
- C. Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.
- D. Use an aging schedule to more closely estimate uncollectible accounts.
Answer: B
NEW QUESTION # 330
Preferred stock has [List A] like common stock and [List B] payment like bonds.
- A. A maturity date
fixed periodic - B. A maturity date
No fixed periodic
No maturity date
A fixed periodic - C. No maturity date
No fixed periodic - D. List A
List B
Answer: B
NEW QUESTION # 331
Based on its current operating levels Glucose LLC estimates that its annual level of taxable profit in the foreseeable future will be US $200,000 annually_ Enacted tax rates for the tax jurisdiction in which Glucose operates are 15% for the first US $50.000 of taxable profit.
25% for the next US $50.000 of taxable profit, and 35% for taxable profit in excess of US $100,000. Which tax rate should Glucose use to measure a deferred tax liability or asset?
- A. 15%
- B. 27.5%
- C. 0
- D. 25%
Answer: B
Explanation:
In measuring a deferred tax liability DTL or asset DTA), the objective is to use the enacted or substantively enacted tax rate(s) expected to apply to taxable profit in the periods in which the deferred tax liability or asset is expected to be settled or realized. If different rates apply to different taxable profit levels, a DTA or DTL is measured based on the average rates expected to apply in the periods when the TDs are expected to reverse. Accordingly, the applicable tax rate is 21.5%.
NEW QUESTION # 332
A cost-volume-profit model developed in a dynamic environment determined that the estimated parameters used may vary between limits. Subsequent testing of the model with respect to all possible values of the estimated parameters is termed:
- A. A time-series study.
- B. Statistical hypothesis testing.
- C. A sensitivity analysis.
- D. Statistical estimation.
Answer: C
Explanation:
After a problem has been formulated into any mathematical model, it may be subjected to sensitivity analysis. Sensitivity analysis is a method for studying the effects of changes in one or more variables on the results of a decision model.
NEW QUESTION # 333
When an organization is choosing a new external auditor, which of the following is the most appropriate role for the chief audit executive to undertake?
- A. Identify regulatory requirements to be considered.
- B. Determine the selection criteria.
- C. Assess the appraisal and actuarial services.
- D. Review and acquire the external audit service.
Answer: A
NEW QUESTION # 334
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