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Exam Code: IIA-CIA-Part2
Exam Name: Practice of Internal Auditing
Vendor: IIA

60 Questions & Answers
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NEW QUESTION: 1
In Microsoft Dynamics AX 2012, which transaction type can be used for fixed asset disposal?
A. Depreciation adjustment
B. Provision for reserve
C. Write down
D. Acquisition adjustment
Answer: B

NEW QUESTION: 2
The three elements needed to estimate the cost of equity capital for use in determining a firm's weighted
average cost of capital are:
A. Current dividends per share, expected growth rate in dividends per share, and current market price per
share of common stock.
B. Current dividends per share, expected growth rate in earnings per share, and current market price per
share of common stock.
C. Current earnings per share, expected growth rate in dividends per share, and current market price per
share of common stock.
D. Current earnings per share, expected growth rate in earnings per share, and current book value per
share of common stock.
Answer: A
Explanation:
Choice "d" is correct. The three elements needed to estimate the cost of equity capital are:
1 . Current dividends per share (D)
2 . Expected growth rate in dividends (g) and
3 . Current market price per share of common stock (P)
The question asks the candidate to identify the three elements needed to estimate the cost of equity
capital for use in determining a firm's weighted average cost of capital. The cost of equity capital is
defined by the following mathematical expression where the cost of capital or return (R) is: R = D/P + g
Choice "d" is consistent with our text, the Explanation: and the Gordon Growth Model. Use of earnings per
share, as suggested by choice "a" is sometimes referred to as the constant growth model and assumes
that all earnings per share are either ultimately distributed or reinvested for the benefit of the shareholder.
Earnings are anticipated to grow to infinity.

NEW QUESTION: 3
Which Layer 2 protocol encapsulation type supports synchronous and asynchronous circuits and has built- in security mechanisms?
A. Frame Relay
B. X.25
C. PPP
D. HDLC
Answer: C
Explanation:
Explanation/Reference:
Explanation:
High-Level Data Link Control (HDLC) -HDLC is the default encapsulation type on point-to-point, dedicated links, and circuit-switched connections. It is used typically when communicating between two Cisco devices. It is a bit-oriented synchronous data link layer protocol.
Point-to-Point Protocol (PPP) -Provides router-to-router and host-to network connections over synchronous and asynchronous circuits. PPP was designed to work with several network layer protocols, such as IP, and IPX. PPP also has built in security mechanisms such as PAP and CHAP X.25/Link Access Procedure, Balanced (LAPB) -ITU-T standard that defines how connections between DTE and DCE are maintained for remote terminal access and computer communications in public data networks. X.25 specifies LAPB, a data line layer protocol. X.25 is a predecessor to Frame Relay.
Frame Relay -Industry standard, switched data link layer protocol that handles multiple virtual circuits. It is a next-generation to X.25 that is streamlined to eliminate some of the time-consuming processes (such as error correction and flow control) that were employed in X.25


NEW QUESTION: 4
An EMC NetWorker customer wants to replicate backup data stored on their Data Domain system to a new, offsite Data Domain system. They want the benefits of replicating data in deduplicated format.
However, they also want to be able to manage and report on the replicated save sets using NetWorker media database information.
To meet their requirements, which method of storing backup data on the Data Domain system and which type of replication should be used?
A. DD Boost for the backup data and clone-controlled replication
B. DD Boost for the backup data and regular clone operation
C. AFTD for the backup data and clone-controlled replication
D. AFTD for the backup data and regular clone operation
Answer: A


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