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CIA-IV - The Certified Internal Auditor Part 4 - Dump Information

Vendor : Financial
Exam Code : CIA-IV
Exam Name : The Certified Internal Auditor Part 4
Questions and Answers : 535 Q & A
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CIA-IV Questions and Answers

Pass4sure CIA-IV Dumps with Real Questions & Practice Test


QUESTION: 180

The managerial factor that may lead to overbuilding in an industry is


  1. Management's belief that the career consequences of overcapacity appear to be more serious than those of under capacity.

  2. Management's production orientation.

  3. Inflation of expectations by industry buzz.

  4. Uncertainty caused by changes in industry structure.


Answer: B

Management that is production-oriented may be more likely to overbuild than marketing-or finance- oriented management.


QUESTION: 181

What governmental factor most likely will lead to overbuilding in a global industry?


  1. Tax incentives are given to local subsidiaries of foreign firms.

  2. The government favors an indigenous industry that has a small minimum efficient scale.

  3. Environmental regulations are imposed on domestic firms.

  4. Anti-bribery laws impede domestic firms from competing globally.


Answer: A

Governmental factors may lead to overbuilding. For example, tax incentives may promote excess capacity by permitting foreign subsidiaries to pay no tax on earnings retained in the business. A nation also may wish to create an indigenous industry. When the minimum efficient scale is great in relation to world demand, the excess production in the country may contribute to global overcapacity. Furthermore, governmental employment pressures may result in overbuilding to create jobs or avoid job loss.


QUESTION: 182

Which factor is most likely to limit expansion of a firm's productive capacity?


  1. Senior managers have production backgrounds.

  2. The firm operates in one industry.

  3. Current technology will soon be obsolete.

  4. Demand uncertainty is low.


Answer: C

A firm's behavior may send signals to competitors that building is unwise. For example, it may announce an expansion project or indicate in some way that forecasts of demand are unfavorable or that current technology will soon be obsolete.


QUESTION: 183

What condition is most likely necessary to the success of a strategy of preemptive expansion?


  1. Competitors believe that the move is preemptive.

  2. The result is intense industry conflict.

  3. The firm does not know the expectations of competitors about the market.

  4. The learning-curve effect is small.


Answer: A

Competitors must believe that the move is preemptive. Hence, the firm should know competitors' expectations about the market or be able to influence them favorably. Moreover, the preempting firm must have credibility, such as resources, technology, and a history of credibility, to support its statements and moves.


QUESTION: 184

Entry into a new business may be made by internal development or acquisition. Entry through internal development usually involves creation of a full-fledged new business entity. The costs likely to be incurred by an internal entrant include

II. nvestments to overcome entry barriers

  1. Change in the equilibrium level of supply and demand

  2. Lower prices charged by competitors

  3. Higher marketing costs


  1. I and II only.

  2. I and IV only.

  3. II, Ill, and IV only.

  4. I, II, Ill, and IV.


Answer: D

An internal entrant must cope with structural barriers and retaliation by existing firms. Costs incurred by the internal entrant include initial investments to overcome entry barriers (facilities, inventory, branding, technology, distribution channels, sources of materials, etc.), operating losses in the start-up phase, and the effects of retaliation (e.g., higher marketing


costs, capacity expansion, or lower prices). Other costs include the price increases for factors of production that may result because of the new entry. Also, the capacity added to the industry by the entrant may affect the equilibrium level of supply and demand. The result may be additional competitive costs as firms with excess capacity cut prices.


QUESTION: 185

Entry into a new business may be made by acquisition. The analysis differs from that for entry by internal development. A key point is that prices are set in the market for acquisitions. Accordingly, a buyer should most likely expect to make above- average profits when the


  1. Market is active and well organized.

  2. Seller can choose to continue operating the business.

  3. Market for acquisitions is imperfect.

  4. Buyer adopts a sequential entry strategy.


Answer: C

Acquisitions are more likely to earn above-average profits when the expected present value to the seller of continuing operations is low, e.g., because the seller needs funds, has capital limits, or has management weaknesses. Above-average profits also are more likely when the market for acquisitions is imperfect. For example, (1) the buyer may have better information,

(2) there are few bidders, (3) the economy is weak, (4) the seller is weak, or (5) the seller has reasons to sell other than profit maximization. Moreover, the buyer may have a unique ability to operate the seller.


QUESTION: 186

A firm enters a new business by creating a full-fledged new entity (an internal entrant). The internal entrant is least likely to cause disruption and retaliation in a


  1. Slow-growth industry.

  2. Fragmented industry.

  3. Commodity-producing industry.

  4. Highly-concentrated industry.


Answer: B

In a fragmented industry, many firms might be affected but not significantly. These firms also might have no ability to retaliate. Firms in a fragmented industry have insignificant market shares and little influence on industry outcomes.


QUESTION: 187

Entry by a firm into a new business may be through the creation of a full-fledged new business entity. The new entrant is most likely to cause industry disruption and retaliation when


  1. The industry is fast-growing.

  2. The industry is highly concentrated.

  3. Fixed costs are low.

  4. The market is segmented.


Answer: B

In a highly concentrated industry, the internal entrant is more likely to have a significant and noticeable effect on particular firms with the ability to retaliate. In a fragmented industry, many firms might be affected but not significantly. These firms also might have no ability to retaliate.


QUESTION: 188

A firm may decide to enter a new business by creating a new entity. After undertaking a structural analysis, the internal entrant chooses an appropriate target industry. The most likely target is an industry in which the entrant


  1. Will have to develop its own distribution network.

  2. Can raise mobility barriers after entry.

  3. Will not have to compete with a dominant firm that seeks to protect the industry.

  4. Calculates that the costs of retaliation to existing firms are less than the benefits.


Answer: B

A distinctive ability to influence industry structure is another basis for earning above-average profits. Thus, an ability to raise mobility barriers after the firm has entered the industry is a reason to target that industry. Moreover, a firm may be able to recognize that entering a fragmented industry will start a process of consolidation and increased entry barriers.


QUESTION: 189

A firm wishes to enter a new business by creating a new entity (an internal entrant). The internal entrant is most likely to achieve above-average profits by targeting which industry?


  1. An industry with high entry costs.

  2. An industry with a stabilized structure.

  3. A new industry.


  4. An industry in equilibrium if entry positively affects the firm's existing businesses.


Answer: C

A firm may be able to achieve above-average profits by choosing appropriate targets. For example, an industry may be in disequilibrium because it is new, entry barriers are rising, or firms have poor information. In a new industry,

  1. the structure is not established,

  2. entry barriers are low, (3) retaliation is unlikely,

  1. resource supplies have not been locked up, and

  2. brands are not well developed.

However, initial firms may have greater costs than later entrants. Rising entry barriers favor an early entrant whose subsequent competitors will face higher costs. The early entrant also may have an edge in product differentiation. Poor information may perpetuate disequilibrium because firms that might enter the industry may not be aware of its potential.


QUESTION: 190

According to the behavioral theory of management.


  1. Employees are motivated to fulfill needs.

  2. Morale problems are not goal related.

  3. Compensation is a universal motivator.

  4. Productivity is not correlated with job satisfaction.


Answer: A

The behavioral theory of management holds that all people including employees) have complex needs, desires, and attitudes. The fulfillment of needs is the goal toward which employees are motivated. Effective leadership matches need-fulfillment rewards with desired behavior tasks) that accomplishes organizational goals.


Financial CIA-IV Exam (The Certified Internal Auditor Part 4) Detailed Information

Certified Internal Auditor (CIA): Strengthen Your Core
The CIA journey begins with a focus on The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards) and aspects of mandatory guidance under the IPPF. The journey continues with a focus on managing an internal audit project and culminates with concepts related to internal control, risk, governance, and technology. The CIA is a 3-part process for establishing your foundational core and starting point for career growth to:
Distinguish you from your peers.
Demonstrate your proficiency with internal staff and external clients.
Develop your knowledge of best practices in the industry.
Demonstrate your proficiency and professionalism.
Lay a foundation for continued improvement and advancement.
Get Started
Internal Audit Practitioner: A New First Stop on Your Road to Success
The IIA's Internal Audit Practitioner designation.The Internal Audit Practitioner designation is a great way to quickly demonstrate your internal audit aptitude. You can earn this new designation through social badging by completing the Internal Audit Practitioner application and taking and passing the Certified Internal Auditor (CIA) Part One exam.
Candidates who have successfully completed the CIA Part One exam within the past 24 months are also eligible to apply.
For more information, please visit the Internal Audit Practitioner web page.
Six Steps to Certification
If you need help getting started, refer to the six steps to certification an internal auditor should review when making the decision to become certified in the profession.
Quick Links
Internal Audit Practitioner
CIA Eligibility Requirements
CIA Exam Syllabus
Sample Exam Questions
CPE Requirements for CIAs
CIA Exam Preparation Resources
CBT Exam Tutorial
Internal Audit Practitioner: A New First Stop on Your Road to Success
​The IIA's Internal Audit Practitioner designation.To support new and rotational auditors as they endeavor to take the first step on their personal journey into internal auditing, The IIA is pleased to announce the Internal Audit Practitioner designation.
The Internal Audit Practitioner designation is a great way to quickly demonstrate your internal audit aptitude. You can earn this new designation through social badging by completing the Internal Audit Practitioner application and taking and passing the Certified Internal Auditor® (CIA®) Part One exam. You can apply through CCMS to obtain this special designation.
Candidates who have previously passed CIA Part One who wish to obtain the Internal Audit Practitioner designation may apply as long as they passed the exam no more than 24 months prior to applying for the designation.
Ideal for New or Rotational Internal Auditors
If you are beginning your auditing career journey, obtaining this designation allows you to make a statement about your knowledge and aptitude as you progress through CIA Part 2 and 3. If you are navigating through a rotational role, the Internal Audit Practitioner designation provides you with the foundational knowledge you will need to make the most of your experience.
A Great Way to Train your Staff on the Foundation of Internal Audit
If you manage an audit team, the Internal Audit Practitioner designation is a great way to establish a common foundation of skills and knowledge related to internal audit best practices. Set your team up for internal audit success by taking steps to insure they are well versed in internal audit basics by encouraging your associates to take and pass Part One of the CIA exam and earn the Internal Audit Practitioner designation.
Pricing Information
This chart states the application and registration fees for the Internal Audit Practitioner program:
​First-time Applicant Members​ ​Nonmember
​Internal Audit Practitioner Application fee ​US$100 US$200​
​CIA Part One Exam registration fee US$250​ ​US$350
Applicants who have already completed and passed the CIA Part One exam 24 months prior to applying for the Internal Audit Practitioner designation must complete the Internal Audit Practitioner application at a reduced fee:
​Previously passed the CIA Part One exam within 24 months ​Members Nonmembers​
​Internal Audit Practitioner Application fee US$50​ US$100​
Register through CCMS today! To learn more about the program and eligibility requirements, please visit the Internal Audit Practitioner FAQ.
Eligibility Requirements
Please refer to the Internal Audit Practitioner FAQ for full details.
Requirements
Internal Audit Practitioner candidates must meet the eligibility requirements for character, work experience, and identification. Before a candidate application can be approved, ALL documentation (character reference and identification) must be received and approved by The IIA’s Certification staff.
Work Experience
Internal Audit Practitioner candidates must have six months internal auditor or equivalent experience (i.e., experience in audit or assessment disciplines, including internal auditing, external auditing, quality assurance, compliance, and internal control). The experience requirement must be fulfilled by the point of completion. There is no defined educational requirement.
Experience Verification Form
Once you have completed the form, please access the Certification Document Upload Portal and upload your form(s) there. (Submit the document type as Work Experience.)
Character Reference
Candidates must exhibit high moral and professional character and must submit a Character Reference Form signed by a CIA, CGAP, CCSA, CFSA, CRMA, or the candidate's supervisor.
Character Reference Form
Once you have completed the form, please access the Certification Document Upload Portal and upload your form(s) there. (Submit the document type as Character Reference.)
Proof of Identification
Candidates must provide proof of identification in the form of a copy of the candidate’s official passport or national identity card. These must indicate current status; expired documents will not be accepted. All documents must be scanned and uploaded through the Document Upload Portal in a manner that ensures the photo is clearly legible.
Internal Audit Practitioner FAQ
FAQ Expand All
What is the Internal Audit Practitioner program?
The Internal Audit Practitioner program is offered by The IIA and provides separate recognition and status for candidates who successfully complete and pass the CIA Part One exam.
How will the Internal Audit Practitioner program benefit candidates?
The Internal Audit Practitioner program is the initial key to professional success, opening doors for career opportunities, and earning candidates increased credibility and respect within their profession and organization.
For most, it is an important stepping stone towards completion of the full CIA or of those specialty certifications that require completion of the CIA Part One exam as a co-requisite (currently CRMA). It is also a desirable minimum achievement for those who are likely to be in internal auditing for two years or less.
Who is eligible to apply?
Please use the PDF to determine if you are eligible to apply.
What are the eligibility requirements?
The eligibility requirements for Internal Audit Practitioner are as follows:
Valid photo ID
Completion of the Internal Audit Practitioner program application
Character reference
Six months internal audit or equivalent experience (i.e., experience in audit or assessment disciplines, including internal auditing, external auditing, quality assurance, compliance, and internal control)
The experience requirement must be fulfilled by the point of completion. There is no defined educational requirement.
How much does the Internal Audit Practitioner recognition program cost?
The application and registration fees for the Internal Audit Practitioner program are as follows:
​First-time Applicant ​Members ​Non-member ​ ​
​Internal Audit Practitioner Application fee USD​ $100 ​USD $200 ​
​CIA Part One Exam
registration fee ​USD $250 ​USD $350 ​
Applicants who have already completed and passed the CIA Part One exam 24 months prior to applying for the Internal Audit Practitioner designation must complete the Internal Audit Practitioner application at a reduced fee:
Previously passed the CIA
P1 exam within 24 months​ Members​ Non-member​
Internal Audit Practitioner
Application fee​ USD $50​ USD $100​
Do I have to be a member of The IIA to apply?
While Internal Audit Practitioner candidates are not required to join The IIA, we strongly encourage you to take advantage of the member benefits including exam fee discounts, free CPE reporting, networking opportunities, and more.
If you live within North America click HERE
If you live outside of North America click HERE
How do I apply to the Internal Audit Practitioner program?
Complete the Internal Audit Practitioner application (available late June) through The IIA’s Certification Candidate Management System (CCMS).
Once you have submitted your application, submit your required documentation through The IIA’s document upload portal. Once your documents have been approved, you will automatically receive notification of your status. To access The IIA’s document upload portal click HERE.
How do I register for the CIA Part One exam?
Once your application for the Internal Audit Practitioner is approved, log into CCMS and complete the CIA Part One exam registration form. The exam is available through computer-based testing, allowing you to test year-round at more than 500 locations worldwide at any IIA-authorized Pearson VUE testing center. To locate the testing centers nearest you, visit the Pearson VUE website. You must apply and register in The IIA's Certification Candidate Management System (CCMS) prior to scheduling an exam.
What is the syllabus for the CIA Part One exam?
The topics tested include aspects of mandatory guidance from the IPPF; internal control and risk concepts; as well as tools and techniques for conducting internal audit engagements.
Note: All items in this section of the syllabus will be tested at the Proficiency knowledge level unless otherwise indicated below.
Mandatory Guidance (35-45%)
Internal Control/Risk (25-35%) – Awareness Level
Conducting Internal Audit Engagement – Audit Tools and Techniques (25-35%)
To review the full syllabus for the CIA Part One exam please click HERE. To review sample exam questions for the CIA Part One exam please click HERE.
How long is the CIA Part One exam?
The CIA Part One exam consists of 125 questions. Candidates will have 2 hours and 30 minutes to complete the exam.
What do I have to do to retain my recognition?
Internal Audit Practitioners will be awarded 2 years of CPE. At the end of the two years, you can report CPE once to keep your designation active for 12 additional months. At the end of the 3rd full year of holding the Internal Audit Practitioner, the designation will automatically expire.
For example if you earn the Internal Audit Practitioner on 1 June 2015, your first CPE report is due on or before 31 December 2017. After that, your designation will expire at the end of 2018.
What if I earn a certified status in the CIA or CRMA programs?
If you complete the CIA program (pass all three parts of the CIA exam) or obtain the CRMA, your Internal Audit Practitioner designation will automatically expire.
Why does my designation expire after 3 full years?
​The Internal Audit Practitioner is not designed to be held indefinitely. This program is designed to accommodate those that will only be in the professional for a short amount of time, and those that do not yet have enough experience to enter the full CIA program. As such, the designation will expire after 3 full calendar years.
Will candidates receive certification?
​The Internal Audit Practitioner program is not a certification program. The program is intended to recognize candidates who successfully complete the CIA Part One exam and are approved for the program.
Will I receive a paper certificate?
​No, individuals that earn the Internal Audit Practitioner designation will not receive a paper certificate. Instead, you will receive a digital badge that represents your achievement. Candidates will be able to display their recognition through social badging. Social badging allows holders of IIA qualifications to digitally display their credentials on social and professional networking sites at no cost to the candidate. For more information on Social Badging, please click HERE.
Certified Internal Auditor® (CIA®) Exam Syllabus
The Certified Internal Auditor (CIA) exam tests a candidate's knowledge of current internal auditing practices and understanding of internal audit issues, risks and remedies.
Exam Non-disclosure
The CIA exam is a non-disclosed examination, which means that current exam questions and answers will not be published or divulged.
NOTE: Exam topics and/or format are subject to change as approved by The IIA's Professional Certification Board (PCB).
Part 1 – Internal Audit Basics
125 questions | 2.5 Hours (150 minutes)
The CIA exam Part 1 topics tested include aspects of mandatory guidance from the IPPF; internal control and risk concepts; as well as tools and techniques for conducting internal audit engagements. Note: All items in this section of the syllabus will be tested at the Proficiency knowledge level unless otherwise indicated below.
Part 2 – Internal Audit Practice
100 questions | 2.0 Hours (120 minutes)
The CIA exam Part 2 topics tested include managing the internal audit function via the strategic and operational role of internal audit and establishing a risk-based plan; the steps to manage individual engagements (planning, supervision, communicating results, and monitoring outcomes); as well as fraud risks and controls. Note: All items in this section of the syllabus will be tested at the Proficiency knowledge level unless otherwise indicated below.
Part 3 – Internal Audit Knowledge Elements
100 questions | 2.0 Hours (120 minutes)
The CIA exam Part 3 topics tested include governance and business ethics; risk management; organizational structure, including business processes and risks; communication; management and leadership principles; information technology and business continuity; financial management; and the global business environment. Note: All items in this section of the syllabus will be tested at the Awareness knowledge level unless otherwise indicated below.
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