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Exam IIA-CIA-Part1 All Questions

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Exam IIA-CIA-Part1 topic 1 question 78 discussion

Actual exam question from IIA's IIA-CIA-Part1
Question #: 78
Topic #: 1
[All IIA-CIA-Part1 Questions]

A manufacturer uses a materials requirements planning (MRP) system to track inventory, orders, and raw materials requirements. What condition should an auditor search for in the MRP database if a preliminary assessment indicated that inventory is understated?
I. Item cost set at zero.
II. Negative quantities on hand.
III. Order quantity exceeding requirements.
IV. Inventory lead times exceeding delivery schedule.

  • A. I and II only
  • B. I and IV only
  • C. II and IV only
  • D. III and IV only
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Suggested Answer: A 🗳️

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Magic_Fab
3 months ago
I don't understand this. Can please someone explain it?
upvoted 1 times
ciaprepper
2 months, 3 weeks ago
I. Item cost set at zero. = Total inventory value would be less than actual on the record if the item cost is set at zero instead of its actual price. II. Negative quantities on hand. = The inventory quantity is literally <0, so would be understated.
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