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Vendor: IIA
Exam Code: IIA-CIA-Part3-KR
Exam Name: Business Knowledge for Internal Auditing (IIA-CIA-Part3 Korean Version)
Certification: Certified Internal
Total Questions: 137 Q&A
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Which of the following is the best explanation for diseconomies of scale?
A. coordination problems
B. indivisibilities
C. diminishing returns
Answer: A
Diseconomies of scale occur when long-run average cost is rising. A good explanation for this is coordination problems resulting from the difficulty of managing large organizations. Answer C
(diminishing returns) is a short-run problem that comes from the fact that all inputs cannot be adjusted, and is thus unrelated to diseconomies of scale.

The CDS quote for the bonds of Bank X is 200 bps. Assuming a recovery rate of 40%, calculate the default hazard rate priced in the CDS quote.
A. 2.00%
B. 3.33%
C. 0.80%
D. 5.00%
Answer: B
Hazard rate x Loss given default = CDS quote. In other words, Hazard rate x (1 - recovery rate) = CDS quote.
We can therefore calculate the hazard rate for this problem as 200 bps/(1 - 40%) = 3.33%.

Your company manages all its desktop computers by using System Center Configuration Manager (Current Branch).
You need to collect software usage data from all the computers. The solution must ensure that all the software usage data is sent to Configuration Manager daily.
Which two actions should you perform? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Deploy the script to the All Systems collection
B. Create a script that contains the commercial ID for Windows Analytics.
C. Deploy a Group Policy object (GPO) that contains the script.
D. Modify the Client Settings.
E. Create a software metering rule.
Answer: D,E