IIA-CIA-Part2

IIA-CIA-Part2 practice questions, page 22 of 39, with answer review and explanations.

Question 106

A company owns a machine that will produce 100 light switches in four hours. Due to increased demand, a second machine capable of producing 100 light switches in three hours has been added. Approximately how many hours will it take to produce 100 light switches using both machines working together?

  1. 7.0
  2. 3.5
  3. 1.7
  4. 0.58

Question 107

A retail sales company has discontinued a product that normally sold for $100. During the first month of a sale of the product, a 20 percent discount was given. Later that sale price was reduced by an additional 40 percent. What was the overall discount from the original selling price?

  1. 60 percent.
  2. 52 percent.
  3. 48 percent.
  4. 30 percent.

Question 108

A recent survey indicated that residents of a small town take the train to a nearby city eight times per month, on average. The same survey showed that the number of train trips that a resident takes per month (y) is determined by the number of days per month that the resident works in the nearby city (x), according to the equation: y = 2 + 2x. A person who never works in the nearby city is expected to take the train:

  1. Zero times per month.
  2. Two times per month.
  3. Four times per month.
  4. Eight times per month.

Question 109

A manager of one of a retailer's several retail outlets is stealing cash from cash sales, recording the sales as accounts receivable, and subsequently writing off the fictitious accounts receivable as bad debts. Which of the following comparisons would be most effective in signaling the possibility of such a fraud?

  1. Bad debt expense as a percentage of sales, compared to that of the other outlets.
  2. Bad debt expense as a percentage of sales, compared to that of previous years.
  3. Percentage of past-due accounts receivable, compared to that of the other outlets.
  4. Percentage of past-due accounts receivable, compared to that of previous years.

Question 110

An auditor is performing a review of a complex process to identify opportunities to increase efficiency. What is the most practical way to document the process to identify areas of inefficiency?

  1. Write a description of the process activities in sequential order.
  2. Develop a PERT (program evaluation and review technique) diagram.
  3. Flowchart the process.
  4. Create a decision tree.