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Exam Code: IIA-CIA-Part1
Exam Name: Essentials of Internal Auditing
Vendor: IIA

60 Questions & Answers
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NEW QUESTION: 1
A customer is deploying a Greenfield 802.11ac network on a floor that will support approximately 300 wireless devices. Which setting needs to be changed on Prime Infrastructure Planning Tool in order to predict the amount of access points the customer needs to service the new floor?
A. Data Coverage Support Margin
B. 802.11n Protocol Support
C. Demand Settings
D. Add AP Field
Answer: D
Explanation:
Reference:
https://www.cisco.com/c/en/us/td/docs/solutions/Enterprise/Borderless_Networks/Unified_A ccess/ CMX/CMX_PredRFPlan.pdf

NEW QUESTION: 2
Whatney Co. is considering the acquisition of a new, more efficient press. The cost of the press is
$ 360,000, and the press has an estimated six-year life with zero salvage value. Whatney uses straightline
depreciation for both financial reporting and income tax reporting purposes and has a 40 percent
corporate income tax rate. In evaluating equipment acquisitions of this type, Whatney uses a goal of a
four-year payback period. To meet Whatney's desired payback period, the press must produce a
minimum annual before-tax, operating cash savings of:
A. $114,000
B. $110,000
C. $90,000
D. $150,000
Answer: B
Explanation:
Choice "b" is correct. $110,000 minimum annual before-tax operating cash savings.
Step 1: Determine the after-tax annual cash savings. The question provides the cash outflow and the
desired payback period (which is calculated using after-tax cash flows). The $90,000 annual after-tax
cash flows is calculated as follows:

Step 2: Determine the amount of the annual depreciation expense. Because the question asks for annual
before-tax cash savings, we will need to convert the $90,000 after-tax cash savings we calculated in Step
1 ,above, to a before-tax amount. The depreciation tax shield plays a role in the after-tax cash flows, so
the annual depreciation of $60,000 must be calculated, as follows:

Step 3: Use algebra to determine the before-tax cash savings. Before-tax cash savings is equal to the
after-tax cash savings plus the taxes paid. So:
Let B = annual before-tax operating cash savings $90,000 after tax cash savings + [(B $60,000
depreciation expense ) (.40 tax rate)] = B $90,000 + [(B $60,000) (.40)] = B $90,000 + [.40B $24,000] = B
$ 90,000 $24,000 = .60B $66,000 = .60B $110,000 = B = annual before-tax operating cash savings


NEW QUESTION: 3

A. Option E
B. Option D
C. Option C
D. Option A
E. Option F
F. Option B
Answer: C,D

NEW QUESTION: 4

A. Option C
B. Option D
C. Option A
D. Option B
Answer: C


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