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IIA-CIA-Part3 - Certified Internal Auditor - Part 3, Business Analysis and Information Technology - Dump Information

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Exam Code : IIA-CIA-Part3
Exam Name : Certified Internal Auditor - Part 3, Business Analysis and Information Technology
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The bullwhip, or whiplash, effect on inventories begins when retailers face uncertain demand from consumers caused by randomness in buying habits. It can be avoided by:

  1. The need to purchase or manufacture goods in cost-efficient batches.

  2. Changes in price that may encourage purchases in anticipation of future increases.

  3. Shortages that may lead to rationing by suppliers or manufacturers and hoarding by manufacturers or retailers.

  4. Sharing of information and coordination among the organizations in the supply chain.

Answer: D


Sharing information about sales, inventory, pricing, advertising campaigns, and sales forecasts by all functions and organizations in the supply chain moderates demand uncertainty for all parties. The desired results are (1) minimization of inventories held by suppliers, manufacturers, and retailers; (2) avoidance of stockouts; (3) fewer rush orders; and (4) production as needed by retailers.


A desired result of the sharing of information by all functions and organizations in the supply chain is:

  1. Fewer rush orders.

  2. Maximization of inventories held by suppliers, manufacturers, and retailers.

  3. Stockouts.

  4. Incompatibility of the information systems of the parties.

Answer: A


Sharing information about sales, inventory, pricing, advertising campaigns, and sales forecasts by all functions and organizations in the supply chain moderates demand uncertainty for all parties. The desired results are (1) minimization of inventories held by suppliers, manufacturers, and retailers; (2) avoidance of stockouts; (3) fewer rush orders; and (4) production as needed by retailers.


Which of the following are intermediaries between sellers and buyers?

  1. Agent

  2. Broker

  3. Consignee

  4. Consumer

  1. I and II only.

  2. I and III only.

  3. I, II, and III only.

  4. I. II, III,and IV.

Answer: C


A distribution channel is a series of interdependent marketing institutions that facilitate the transfer of a product from producer (seller) to consumer (buyer). Intermediaries include merchant middlemen, agents, brokers, consignees, and facilitating intermediaries.


The channel structure in which producers, wholesalers, and retailers act as a unified system is a:

  1. Horizontal distribution system.

  2. Vertical distribution system.

  3. Unilateral distribution system.

  4. Multichannel system.

Answer: B


In vertical distribution systems, producers, wholesalers, and retailers act as a unified system. Channel conflict is managed through common ownership, contractual relationships, or administration by one or a few dominant channel members. Horizontal distribution systems consist of two or more companies at one level of the channel working together to exploit new opportunities, such as the introduction of ATMs in supermarkets. The joint nature of horizontal distribution efforts is the tool for managing channel conflict. In a multichannel system, a single firm sets up two or more channels to reach one or more customer segments. Because such a system

is managed by a single firm, channel conflicts can be evaluated and managed internally.

Which of the following channel structures have the best means of managing channel conflict?

  1. Conventional

  2. Vertical

  3. Horizontal

  4. ultichannel

  1. I and II.

  2. II, III,and IV.

  3. I, III,and IV.

  4. II and III.

Answer: B


In vertical distribution systems, channel conflict is managed through common ownership, contractual relationships, or administration by one or a few dominant channel members. The joint nature of horizontal distribution efforts is the tool for managing channel conflict. In a multichannel system, because such a system is managed by a single entity, channel conflicts can be evaluated and managed internally. Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers, each of which is a separate profit-maximizing business. The profit objective of each independent channel member may result in actions that are not

profitmaximizing for the system as a whole, and the conventional distribution system

offers no means for controlling channel conflict.


The airlines have been leaders in the use of technology. Customers can make reservations either with an airline or through a travel agency. In this situation, a travel agency is classified as which type of distribution channel?

  1. An intermediary

  2. A jobber

  3. A distributor

  4. A facilitating agent

Answer: A


Marketing intermediaries assist companies in promoting, selling, and distributing

theirgoods and services to ultimate consumers. For example, travel agents access an airline's computerizedreservation system and make reservations for their customers without ever taking title to the ticket.


On January 1, an entity issued a 10-year US $500,000 bond at 96% of its face amount. The bond bears interest at 12%, payable on January 1 and July 1. The entry to record the issuance of the bond on January 1 is:


  1. Option A

  2. Option B

  3. Option C

  4. Option D

Answer: C


The entity received US $480,000 cash on the issuance of the bond. Its face amount is US$500,000, the amount to be paid at maturity. Hence, the credit to bonds payable is US$500,000. The US$20,000 difference is recorded as a discount on bonds payablea debitand is amortized over the life of the issue.

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Accountants and auditors earned a median yearly income of $sixty seven,one hundred ninety in 2015, as per information released by means of the BLS. knowledgeable Certification and carrying on with training students seeking to turn into CIAs (certified inside auditors) ought to flow the four-half exam administered via the Institute of inside Auditors. They ought to cling a bachelor's or master's degree and have completed not less than two years of internal auditing journey. each and every section of the examination have to be achieved inside two years of each and every other. people who have develop into certified in inner auditing need to maintain their certification by way of completing carrying on with expert schooling (CPE) hours each two years. 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The demand for auditors is anticipated to grow by using 11% over the next decade, and potential students have various certificate programs to choose from together with interior auditing, residential power, and IT. Obviously it is hard assignment to pick solid certification questions/answers assets concerning review, reputation and validity since individuals get sham because of picking incorrectly benefit. Killexams.com ensure to serve its customers best to its assets concerning exam dumps update and validity. The vast majority of other's sham report objection customers come to us for the brain dumps and pass their exams cheerfully and effectively. We never trade off on our review, reputation and quality because killexams review, killexams reputation and killexams customer certainty is vital to us. 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