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CIA-III - The Certified Internal Auditor Part 3 - Dump Information

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Exam Code : CIA-III
Exam Name : The Certified Internal Auditor Part 3
Questions and Answers : 1205 Q & A
Updated On : November 21, 2017
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CIA-III Questions and Answers

CIA-III

QUESTION: 307

Which of the following is an important senior management responsibility with regard to information systems security?


  1. Assessing exposures.

  2. Assigning access privileges.

  3. Identifying ownership of data.

  4. Training employees in security matters.


Answer: A

Senior management is responsible for risk assessment, including identification of risks and

consideration of their significance, the likelihood of their occurrence, and how they should be managed. Senior management is also responsible for establishing organizational policies regarding computer security and implementing a compliance structure. Thus, senior management should assess the risks to the integrity, confidentiality, and availability of information systems data and resources.


QUESTION: 308

Management's enthusiasm for computer security seems to vary with changes in the environment, particularly the occurrence of other computer disasters. Which of the following concepts should be addressed when making a comprehensive recommendation regarding the costs and benefits of computer security?

Potential loss if security is not implemented Probability of occurrences

Cost and effectiveness of the implementation and operation of computer security


  1. I only.

  2. I and II only.

  3. III only.

B. I, Il, and Ill.


Answer: D

Potential loss is the amount of dollar damages associated with a security problem or loss of assets. Potential loss times the probability of occurrence is an estimate expected value) of the exposure associated with lack of security. It represents a potential benefit associated with the implementation of security measures. To perform a cost-benefit analysis, the costs should be considered. Thus, all three items need to be addressed.


QUESTION: 309

Of the following, the greatest advantage of a database server) architecture is


  1. Data redundancy can be reduced.

  2. Conversion to a database system is inexpensive and can be accomplished quickly.

  3. Multiple occurrences of data items are useful for consistency checking.

  4. Backup and recovery procedures are minimized.


Answer: A

Data organized in files and used by the organization's various applications programs are

collectively known as a database. In a database system, storage structures are created that render the applications programs independent of the physical or logical arrangement of the data. Each data item has a standard definition, name, and format, and related items are linked by a system of pointers. The programs therefore need only to

specify data items by name, not by location. A database management system handles retrieval and storage. Because separate files for different applications programs are unnecessary, data redundancy can be substantially reduced.


QUESTION: 310

In an inventory system on a database management system DBMS), one stored record

contains part number, part name, part color, and part weight. These individual items are called


  1. Fields.

  2. Stored files.

  3. Bytes.

  4. Occurrences.


Answer: A

A record is a collection of related data items fields). A field data item) is a group of

characters representing one unit of information.


QUESTION: 311

An inventory clerk, using a computer terminal, views the following on screen part number, part description, quantity on hand, quantity on order, order quantity, and reorder point for a particular inventory item. Collectively, these data make up a


  1. Field.

  2. File.

  3. Database.

  4. Record.


Answer: D

A record is a collection of related data items fields). A field data item) is a group of

characters representing one unit of information. The part number, part description, etc., are represented by fields.


QUESTION: 312

Which of the following is the elementary unit of data storage used to represent individual

attributes of an entity?


  1. Database.

  2. Data field.

  3. File.

  4. Record.


Answer: B

A data item or field) is a group of characters. It is used to represent individual attributes of

an entity, such as an employee's address. A field is an item in a record.


QUESTION: 313

A file-oriented approach to data storage requires a primary record key for each file. Which of the following is a primary record key?

  1. The vendor number in an accounts payable master file.

  2. The vendor number in a closed purchase order transaction file.

  3. The vendor number in an open purchase order master file_

  4. All of the answers are correct.


Answer: A

The primary record key uniquely identifies each record in a file. Because there is only one

record for each vendor in an accounts payable master file. the vendor number would be the appropriate key.


QUESTION: 314

A business is designing its storage for accounts receivable information. What data file

concepts should be used to provide the ability to answer customer inquiries as they are received?


  1. Sequential storage and chains.

  2. Sequential storage and indexes.

  3. Record keys, indexes, and pointers.

  4. Inverted file structure indexes, and internal labels.


Answer: C

A record key is an attribute that uniquely identifies or distinguishes each record from the

others. An index is a table listing storage locations for attributes, often including those other than the unique record key attribute. A pointer is a data item that indicates the physical address of the next logically related record.


QUESTION: 315

Auditors making database queries often need to combine several tables to get the information they want. One approach to combining tables is known as


  1. Extraction.

  2. Joining.

  3. Sorting.

  4. Summarization.


Answer: B

In data management terminology, joining is the combining of data files based on a

common data element. For example, if rows in a table containing information about specified parts have been selected, the result can be joined with a table that contains information about suppliers. The join operation may combine the two tables using the supplier number assuming both tables contained this element) to provide information about the suppliers of particular parts.


QUESTION: 316

Users making database queries often need to combine several tables to get the information

they want. One approach to combining tables is


  1. Joining.

  2. Merging.

  3. Projecting.

  4. Pointing.


Answer: A

Joining is the combining of two or more relational tables based on a common data

element. For example, if a supplier table contains information about suppliers and a parts table contains information about parts, the two tables can be joined using the supplier number assuming both tables contain this attribute) to give information about the supplier of particular parts.


QUESTION: 317

All of the following are methods for distributing a relational database across multiple

servers except


  1. Snapshot making a copy of the database for distribution).

  2. Replication creating and maintaining replica copies at multiple locations)_

  3. Normalization separating the database into logical tables for easier user processing).

  4. Fragmentation separating the database into parts and distributing where they are needed).


Answer: C

A distributed database is stored in two or more physical sites. The two basic methods of

distributing a database are partitioning and replication_ However. normalization is a process of database design, not distribution. Normalization is the term for determining how groups of data items in a relational structure are arranged in records in a database. This process relies on "normal forms," that is. conceptual definitions of data records and specified design rules_ Normalization is intended to prevent inconsistent updating of data items. It is a process of breaking down a complex data structure by creating smaller, more efficient relations, thereby minimizing or eliminating the repeating groups in each relation.


QUESTION: 318

In a database system, locking of data helps preserve data integrity by permitting

transactions to have control of all the data needed to complete the transactions. However, implementing a locking procedure could lead to


  1. Inconsistent processing.

  2. Rollback failures.

  3. Unrecoverable transactions.

  4. Deadly embraces retrieval contention).


Answer: D

In a distributed processing system, the data and resources a transaction may update or use

should be held in their current status until the transaction is complete. A deadly embrace occurs when two transactions need the same resource at the same time. If the system does not have a method to cope with the problem efficiently, response time worsens or the system eventually fails. The system should have an algorithm for undoing the effects of one transaction and releasing the resources it controls so that the other transaction can run to completion.


QUESTION: 319

One advantage of a database management system DBMS) is

  1. That each organizational unit takes responsibility and control for its own data.

  2. The cost of the data processing department decreases as users are now responsible for

establishing their own data handling techniques.

  1. A decreased vulnerability as the database management system has numerous security

    controls to prevent disasters.

  2. The independence of the data from the application programs. which allows the

programs to be developed for the user's specific needs without concern for data capture problems.


Answer: D

A fundamental characteristic of databases is that applications are independent of the

database structure; when writing programs or designing applications to use the database. only the name of the desired item is necessary. Programs can be developed for the user's specific needs without concern for data capture problems. Reference can be made to the items using the data manipulation language, after which the DBMS takes care of locating and retrieving the desired items. The physical or logical structure of the database can be completely altered without having to change any of the programs using the data items, only the schema requires alteration.


QUESTION: 320

Which of the following is a false statement about a database management system application environment?


  1. Data are used concurrently by multiple users.

  2. Data are shared by passing files between programs or systems.

  3. The physical structure of the data is independent of user needs.

  4. Data definition is independent of any one program.


Answer: B

In this kind of system, applications use the same database There is no need to pass files

between applications.


QUESTION: 321

Which of the following should not be the responsibility of a database administrator?


  1. Design the content and organization of the database.

  2. Develop applications to access the database.

  3. Protect the database and its software.

  4. Monitor and improve the efficiency of the database.


Answer: B

The database administrator DBA) is the person who has overall responsibility for developing and maintaining the database. One primary responsibility is for designing the content of the database. Another responsibility of the DBA is to protect and control the database. A third responsibility is to monitor and improve the efficiency of the database. The responsibility of developing applications to access the database belongs to systems analysts and programmers.


QUESTION: 322

The responsibilities of a data administrator DA) include monitoring

  1. The database industry.

  2. The performance of the database.

  3. Database security.

  4. Backup of the system.


Answer: A

The DA handles administrative issues that arise regarding the database. The DA acts as an

advocate by suggesting new applications and standards. One of the DA's responsibilities is to monitor the database industry for new developments. In contrast, the database administrator DBA) deals with the technical aspects of the database


QUESTION: 323

To trace data through several applies qti on programs, an auditor needs to know what programs use the data, which files contain the data, and which print-td reports display the data. If data exist only in a database system, the auditor could probably find all of this information in a


  1. Data dictionary.

  2. Database schema.

  3. Data encryptor.

  4. Decision table.


Answer: A

The data dictionary is a file possibly manual but usually computerized) in which the

records relate to specified data items. It contains definitions of data items, the list of programs used to process them, and the reports in which data are found. Only certain persons or entities are permitted to retrieve data or to modify data items. Accordingly. these access limitations are also found in the data dictionary.


QUESTION: 324

Image processing systems have the potential to reduce the volume of paper

circulated throughout an organization. To reduce the likelihood of users relying on the wrong images, management should ensure that appropriate controls exist to maintain the


  1. Legibility of image data.

  2. Accessibility of image data.

  3. Integrity of index data.

  4. Initial sequence of index data.


Answer: C

Data integrity is a protectibility objective. If index data for image processing systems are

corrupted, users will likely be relying on the wrong images.


QUESTION: 325

What language interface would a database administrator use to establish the structure of

database tables?


  1. Data definition language.

  2. Data control language.

  3. Data manipulation language.

  4. Data query language.


Answer: A

The schema is a description of the overall logical structure of the database using data- definition language DDL), which is the connection between the logical and physical structure of the database. DDL is used to define, or determine, the database.


QUESTION: 326

Query facilities for a database system would most likely include all of the following except


  1. Graphical output capability.

  2. Data dictionary access.

  3. A data validity checker.

  4. A query-by-example interface.


Answer: C

The least likely feature of a query tool would be a data validity checker because the

database system has already enforced any validity constraints at the time the data were inserted in the database. Any further data validity checking would be a function of a user application program rather than a query.


QUESTION: 327

Which of the following would be the most appropriate starting point for a compliance evaluation of software licensing requirements for an organization with more than 15,000 computer workstations?


  1. Determine if software installation is controlled centrally or distributed throughout the organization.

  2. Determine what software packages have been installed on the organization' s

    computers and the number of each package installed.

  3. Determine how many copies of each software package have been purchased by the

    organization.

  4. Determine what mechanisms have been installed for monitoring software usage.


Answer: A

The logical starting point is to determine the point(s) of control. Evidence of license

compliance can then be assessed. For example, to shorten the installation time for revised software in a network, an organization may implement electronic software distribution ESD), which is the computer-to-- computer installation of software on workstations. Instead of weeks, software distribution can be accomplished in hours or days and can be controlled centrally. Another advantage of ESD is that it permits tracking or metering of PC program licenses.


QUESTION: 328

Use of unlicensed software in an organization

  1. Increases the risk of introducing viruses into the organization

  2. Is not a serious exposure if only low-cost software is involved

  3. Can be detected by software checking routines that run from a network server


  1. I only.

  2. I and II only.

  3. I, II, and Ill.

  4. I and Ill only.


Answer: D

Antivirus measures should include strict adherence to software acquisition policies. Unlicensed software is less likely to have come from reputable vendors and to have been carefully tested.Special software is available to test software in use to determine whether it has been authorized.


QUESTION: 329

The Internet consists of a series of networks that include


  1. Gateways to allow personal computers to connect to mainframe computers.

  2. Bridges to direct messages through the optimum data path_

  3. Repeaters to physically connect separate local area networks LANs).

  4. Routers to strengthen data signals between distant computers.


Answer: A

The Internet facilitates information transfer between computers. Gateways are hardware or

software products that allow translation between two different protocol families. For example, a gateway can be used to exchange messages between different email systems.


QUESTION: 330

Which of the following is true concerning HTML?


  1. The acronym stands for HyperText Material Listing.

  2. The language is among the most difficult to learn

  3. The language is independent of hardware and software.

  4. HTML is the only language that can be used for Internet documents.


Answer: C

HTML is the most popular language for authoring Web pages. It is hardware and software

independent, which means that it can be read by several different applications and on many different kinds of computer operating systems. HTML uses tags to mark information for proper display on Web pages.


QUESTION: 331

Which of the following is a false statement about XBRL?


  1. XBRL is freely licensed.

  2. XBRL facilitates the automatic exchange of information

  3. XBRL is used primarily in the U.S.

  4. XBRL is designed to work with a variety of software applications.


Answer: C

XBRL stands for eXtensible Business Reporting Language. It is being developed for

business and accounting applications. It is an XML-based application used to create, exchange, and analyze financial reporting information and is being developed for worldwide use.


Financial CIA-III Exam (The Certified Internal Auditor Part 3) 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.

Hezbollah: Portrait of a Terrorist Organization

Hezbollah has a 30-year history of terrorist activity in Lebanon, the Middle East and around the globe, directed against Israel, the Jewish people, the United States and the West, pro-Western Arab states and Hezbollah's enemies in Lebanon.  Overview

1. Since its establishment in Lebanon 30 years ago, Hezbollah has, without interruption, carried out or planned a variety of terrorist attacks around the globe, using different methods. Those terrorist attacks are part of Iranian policy, which uses Hezbollah as its main proxy through the Islamic Revolutionary Guards' Quds Force and other governmental institutions. The targets and emphases change from time to time according to Iranian and Hezbollah considerations and interests. The targets include Israel and the Jewish people, the United States and other Western countries, Hezbollah and Syria's opponents in Lebanon, and Arab regimes hostile to Iran and the "resistance camp" it leads.

2. In recent years Hezbollah has been involved in terrorist (an occasionally guerilla) activities in different arenas using various methods against its targets. At the same time, with Iranian and Syrian support, it has been upgrading its military-terrorist infrastructure in Lebanon, which far surpasses those of other terrorist organizations in the Middle East and beyond.

3. A short summary of Hezbollah's terrorist and guerilla activity and its military buildup follows.

1) In Lebanon Iran and Syria have enlarged and upgraded Hezbollah's military-terrorist infrastructure since the Second Lebanon War. Its main military asset is an arsenal of an estimated 60,000 rockets and missileswhich threaten Israel's civilians. Hassan Nasrallah, Hezbollah's leader, boasted that he had precise rockets and a bank of targets, and could turn the lives of hundreds of thousands of Israeli civilians into a living hell. Hezbollah also carries out personal terrorismagainst its opponents in Lebanon, mainly senior figures. The objective is to scare and deter Hezbollah's opponents, mainly after the erosion of its status following its support for the Syrian regime.

2) In the international arena, Hezbollah participates in the global terrorist campaign carried out by the Iranian Quds Force, whose main targets are Israeli diplomats and tourists. Hezbollah's most recent attack was on an Israeli tourist bus in Burgas, Bulgaria, considered successful (by Iran and Hezbollah), after a series of failed attacks abroad in previous years.

3) In the Palestinian arena, Hezbollah helped Iran upgrade the military-terrorist infrastructure of the terrorist organizations operating in the Gaza Strip after Operation Cast Lead, mainly Hamas and the Palestinian Islamic Jihad. On the eve of Operation Pillar of Defense the terrorist organizations had many thousands of rockets, among them long-range Fajr-5 rockets manufactured in Iran (eight of which hit or were intercepted in the greater Tel Aviv area). In addition, Hezbollah encourages terrorist attacks against Israel from the Gaza Strip and the Sinai Peninsula. During the Palestinian terrorist campaign known as the second intifada, Iran and Hezbollah provided the Palestinian terrorist organizations with financial and military support and handled terrorist squads in the Palestinian territories.

4) InsideIsrael Hezbollah carries out intelligence and subversive activities. Hezbollah, with Iranian aid, recently sent an unmanned aerial vehicle (UAV) to collect intelligence and to send Israel a deterrent message (UAVs could also be used for offensive purposes). Hezbollah also attempts to smuggle IEDs and weapons into for terrorist attacks (exploiting its ties to criminal networks) and to use Israeli Arabs for intelligence missions supporting its terrorist activities.

5) InSyria Hezbollah is part of the Iranian effort (led by the Quds Force) to prevent the topple of the Syrian regime, the central member of the so-called "resistance camp." Hezbollah provides the Assad regime with guidance, military training, intelligence and weapons, and hundreds of its operatives are present in Syria. In recent months several Hezbollah operatives died in the battles and others were taken prisoner by the rebels. However, Hezbollah does not admit to its military involvement in Syria and claimed that its operatives died while "fulfilling their commitment to jihad."

6) In the Arab states Iran uses Hezbollah for subversion, terrorism and guerilla activities: in Iraq Hezbollah operatives trained and handled the Shi'ite militias operated by the Quds Force against the United States and its allies (until America withdrew from Iraq at the end of 2011). In Yemen Hezbollah helped train the Iranian-supported Houthi rebels; and in Bahrain Hezbollah was recently publicly accused by Bahraini authorities of involvement in a series of explosions in the capital city of Manama. Its objective was to destabilize the Bahraini regime, against which Iran is waging a years-long campaign of terrorism and subversion. Hezbollah does not admit to involvement in terrorism and subversion in Arab countries.

The Structure of This Study

4. This study is the second part of comprehensive research into the terrorist and subversive activities Iran carries out around the globe directly, and though its main proxy, Hezbollah. The first part, which can be accessed on the Intelligence and Terrorism Information Center website,[1] deals with the Quds Force as spearheading Iran's global terrorism and subversion campaign during the last decade. Two additional parts, which will be issued in the future, will deal with the distribution (according to continent and country) of Iran's global terrorist activity and an analysis of the methods used by Iranian and terrorism and subversion.

5. The three appendices of this study providea chronological analysis of Hezbollah's most glaring terrorist activities in the 30 years since its founding, integral to Iran's overall policies.[2] In addition to terrorist attacks on civilians, Hezbollah has engaged in guerilla warfare in Lebanon and Iraq, against the IDF and against the United States and other Western armies. The targets have changed from time to time depending on Iranian policy, the constraints Hezbollah has had to deal with in Lebanon and the changing regional and international strategic circumstances during Hezbollah's 30 years of terrorist activity.

6. This study includes the following sections:

1) Hezbollah's place in the current global terrorist campaign against Israel.

2) Hezbollah's support for the Assad regime in Syria – update.

3) Summary of Hezbollah's record as a terrorist organization during the 30 years of its existence (1982-2012).

4) The issue of Hezbollah as a designated terrorist organization.

5)Three appendices dealing with the chronological distribution of Hezbollah's terrorist activities:

1) Appendix I: Hezbollah's terrorist activity, 2000-2012

A. Overview

B. The Lebanese arena

i) Building Hezbollah's rocket arsenal after the IDF left south Lebanon (2000-2006).

ii) Using the rocket arsenal to attack civilian targets in Israel during the Second Lebanon War.

iii) Updating the rocket arsenal after the Second Lebanon War (2006-2012)

iv) Employing terrorism and violence against Hezbollah's political opposition in Lebanon.

C. The Israeli arena

i) Overview.

ii) Sending a UAV into Israeli airspace.

iii) Using Israeli Arabs to collect intelligence.

iv) Using drug dealers to smuggle explosive devices into Israel territory.

            D. The Palestinian arena

i) Iranian and Hezbollah (as a subcontractor) support for the Palestinian terrorist organizations operating in the Gaza Strip (2006-2012).

ii) Iranian and Hezbollah encouragement for Palestinian terrorism during the second intifada (2000-2005).

iii) Hezbollah's involvement in smuggling weapons from Iran for the Palestinian terrorist organizations during the second intifada.

E. The global arena

i) Hezbollah participation in the global wave of anti-Israel terrorism (2008-2012).

ii) Exposure of a Hezbollah network in Egypt which planned to carry out terrorist attacks (2008)

            F. The Iraqi arena

i) The Quds Force's use of Hezbollah to support the Shi'ite militias against the United States and its allies (2006-2011)

ii) The affair of Ali Musa Daqduq

2) Appendix II: Hezbollah's terrorist activities during the 1990s

A. Overview

B. The global arena

i) Hezbollah's terrorist attacks in Argentina (1992, 1994).

ii) The failure of the attempted bombing of the Israeli embassy in Thailand (1994)

C. The Israeli arena

i) Terrorist attacks in Israel as well as in Gaza Strip, Judea and Samaria carried out through Europe.

ii) Terrorism and drugs: the abduction of Elhahan Tannenbaum (2000)

3)  Appendix III: Hezbollah's terrorist activities during the 1980s

A. Overview

B. The Lebanese arena

i) Bombing the American embassy and American and French military barracks in Beirut(1983).

ii) Severe blow to the Lebanese branch of the CIA.

iii) Abduction of Western nationals.

iv) Assassination of Western and Jewish figures.

v) Epilogue

C. The international arena

i) Attacks on the American and French diplomatic missions in Kuwait (1983).

ii) Attempted assassination of the Kuwaiti emir (1985)

iii) Hijacking planes

a) TWA (1985)

b) Kuwaiti airplanes (1984, 1988)

c) Air France (1987)

d) Air Afrique (1987)

iv) Iranian and Hezbollah involvement in the wave of killings in Paris (1986-1987)

v) Prevention of terrorist activity in Germany (1987, 1989)

vi) Hezbollah network exposed in Spain (1989)

Hezbollah's Role in the Current Global Terrorist Campaign against Israel

7. For the past four years Hezbollah has participated actively in Iran's global terrorist campaign against Israel. The recent attack on an Israeli tourist bus in Burgas, Bulgaria, which killed five Israeli tourists and their local bus driver, was the first "successful" attack in the current terrorist campaign, after a series of attempted attacks were foiled. In the terrorist campaign conducted abroad, Hezbollah serves as an Iranian proxy handled by the Qods Force, an elite unit of the Islamic Revolutionary Guards (IRG), which spearheads Iran's foreign terrorism.[3] Even before the founding of the Qods Force, in the summer of 1982 the IRG established Hezbollah in Lebanon, and has provided it with massive military and financial support in the 30 years since.

8. Hezbollah's current targets for terrorist attacks are primarily Israeli diplomatic missions abroad and groups of Israelis on vacation throughout the Mediterranean basin and other tourist destinations. Some of the attacks and attempted attacks were carried out by Hezbollah, directed and supported by the Qods Force (Bulgaria, Cyprus, Azerbaijan and Turkey) and some were carried out by the Qods Force without Hezbollah involvement (Azerbaijan, India, Georgia, Thailand and Kenya).

9. The terrorist campaign, from the Iranian perspective, is a Iranian response to the "soft war"[4] being waged against Iran and the "resistance camp," and is also intended to strengthen Iran's strategic bargaining capabilitiesand show the United States, the West and Israel that it can harm their interests around the globe. As far as Iran and Hezbollah are concerned, the terrorist campaign is also a way of getting revenge for the death of senior Hezbollah commander Imad Mughniyeh and the killing of Iranian nuclear scientists (for both of which Iran and Hezbollah blame Israel), thusdeterring Israel from taking other actions, especially in its war against terrorism and the Iranian nuclear program.[5]

10. During the past four years (2008-2012) Hezbollah attempted to carry out six terrorist attacks, some of them in Mediterranean countries popular with Israeli tourists. One proceeded according to Hezbollah's plans and the others were either prevented or failed. In our assessment, they were carried out by Hezbollah's foreign operations unit (See below). The attacks were the following:

1) Blowing up an Israeli tourist bus in Bulgaria (July 18, 2012): An IED weighing about 3 kilos, or about 6.6 lbs, blew up the back of a tourist bus about to take Israeli tourists from the airport to their hotel in the Black Sea resort of Burgas. According to the Bulgarian minister of the interior, the IED had been assembled in Bulgaria. The terrorist attack was carried out by a Hezbollah operativewho, according to information from the Bulgarian authorities, had a local supporter who has not yet been detained. The terrorist was killed by a technical fault which caused the IED to explode prematurely. The blast killed five Israeli tourists, the Bulgarian bus driver and the terrorist. In addition, 36 Israeli civilians were wounded, three of them seriously.

2) Attack targeting Israeli tourists in Cyprus, prevented (July 7, 2012): The local authorities in Limassol detained a 24-year old Lebanese Hezbollah operative who was collecting information about Israeli tourists arriving on the island by air; he was carrying a Swedish passport (the Hezbollah terrorist operative involved in the attack in Thailand also carried a Swedish passport; see below). In our assessment, he was collecting information in preparation for an attack on Israeli tourists visiting the island, possibly the same sort of attack carried out in Bulgaria.

3) A terrorist attack on Israelis at a tourist center in Bangkok, Thailand (middle of January, 2012): Hezbollah, instructed by the Qods Force, attempted to attack sites visited by Israelis using IEDs. A Lebanese Hezbollah terrorist operative named Hussein Atris, carrying a Swedish and Lebanese passports, was detained at the Bangkok airport.[6] Another Hezbollah operative, also carrying a Swedish passport, managed to escape. Hussein Atris' interrogation led the police to a commercial building in Bangkok where they found a large quantity of chemicals used in the manufacture of explosives (about 4,400 kilograms, or 4.85 tons, of nitrogen and about 40 liters, or 10.5 gallons, of ammonium nitrate). In our assessment, the presence of such a large stock of potentially dangerous chemicals indicates the existence of a long-standing, well-established Hezbollah network in Thailand. A month later, on February 14, 2012, the Qods Force attempted another attack in Bangkok, this time using a magnet to attach an IED to the car of an Israeli diplomat. The attempt, like the Qods Force attacks in India and Georgia in the former Soviet Union, was prevented by the local authorities.

4) On January 5, 2012, the Israeli media reported that Hezbollah was planning to carry out terrorist attacks on Israeli tourists in Europe, especially Bulgaria. The Bulgarian news agencies also reported concerns about attacks on Israeli andor Jewish targets in Bulgaria or Greece. On January 8 the Israeli media reported that a suspicious object had been found on a bus that entered Bulgaria from Turkey and was going to be used to transport Israeli tourists.

5) An unsuccessful attempt to assassinate the Israeli consul in Istanbul using an IED (May 26, 2011): The blast injured eight Turkish citizens. In July 2011 the Italian Corriere della Sera reported that three Hezbollah operatives from Beirut had often followed the Israeli consul from his home to the consulate. According to Sky News (April 2012), the Qods Force's Unit 400, responsible for attacks beyond the borders of Iran, was behind the attack. The attack was preceded, in 2009, by a joint Iran-Hezbollah attack on an Israeli target, and in 2010 by an Iranian attempt to attack an Israeli target, indicating Turkey as a favored location for Iran and Hezbollah's terrorist campaign.

6) An attempted attack on the Israeli embassy in Baku, Azerbaijan (May 2008): The attack was carried out by Hezbollah, in our assessment with support from the Qods Force. The terrorist cell was composed of two Hezbollah operatives, Ali Karaki, from Hezbollah's foreign operations unit, and Ali Najem al-Din, an explosives expert. The two underwent training in Iran before they were sent to Baku. They carried Iranian passports, and the Iranians also furnished them with a translator. Preparations for the attack, which had almost reached the final stage, were exposed when the Azeri security forces stopped a car carrying the two Hezbollah operatives. In the car they found guns with silencers, explosives, cameras, binoculars and pictures of the Israeli embassy. The two Hezbollah operatives were tried, found guilty, and sentenced to 15 years in prison (October 2009). During the first half of 2012 an attempted Qods Force assassination of two prominent Jewish figures in Baku was prevented. The attack was planned to be carried out during the Eurovision, without Hezbollah participation.

11. It is therefore evident that in recent years Hezbollah has been a close partner in Iran's global terrorist campaign, accelerating since May 2011. The campaign directly threatens all tourism, but its main targets are groups of Israeli tourists and Israel's diplomatic representatives around the globe. In our assessment, it reflects Iran and Hezbollah's readiness to expose themselves to risks, even at the price of a possible escalation with Israel.

To the Full Document in PDF Format Click Here

[1] 

The Story Of How An Ill-Conceived Minimum Wage Hike Destroyed The Samoan Economy

(This post originally appeared at the author's blog)

Like many football fans around the country, I recently tuned into a heavily promoted 60 Minutes segment on the uncanny ability of tiny American Samoa to produce a steady stream of NFL players. Although it was certainly interesting to learn how Pacific island warrior culture translated seamlessly into the disciplines of American football, and how the island's players adapted to the hard-scrabble terrain and poorly funded athletic fields, the most interesting aspect of the piece concerned economics rather than sports.

In passing, the narrator mentioned that American Samoa had recently experienced major setbacks, both natural and man-made. Earthquakes and tsunamis had left scores dead and inflicted major damage on the islands’ infrastructure. More ominously, one of the two major tuna canneries, which together accounted for up to half of the islands’ private sector jobs,[i] had closed. If the second cannery closes, as 60 Minutes mentioned is a distinct possibility, American Samoa will become completely dependent on Federal support. Whether the reporters considered the subject off-target for their piece or simply could not connect the dots, the pending economic disaster was left largely unexamined. However, the Samoan situation offers a very clear lesson for the rest of America about how government policies can devastate an economy, and how the road to hell is paved with good intentions.

For generations, American Samoa offered strong advantages for tuna canners. The close proximity to vast Pacific tuna schools, the islands’ good port facilities, political association with the United States, and an abundance of relatively inexpensive labor (by American standards) enticed StarKist and Chicken of the Sea to locate their primary canning facilities in American Samoa. Although the workers were paid, in recent years, wages that were below the U.S. minimum, given the low taxes and living costs, these wages were enough to offer the average worker a standard of living that was superior to the denizens of other islands in that area of the Pacific.[ii]

But then, in 2007, Washington came to the “rescue.” As part of its efforts to provide a “living wage” for all Americans, Congress passed a law to step up the minimum wage to $7.25 per hour across all U.S. states and territories by 2009.[iii] Understanding that such a law would devastate American Samoa by raising canning costs past the point where the companies could maintain profitability, the non-voting Samoan member of the U.S. House of Representatives convinced Congress to allow an exemption for the islands. However, Republicans raised allegations that Speaker of the House Nancy Pelosi, in whose district both Chicken of the Sea and StarKist had corporate offices, had caved to pressure from big donors and was allowing the continued "exploitation" of Samoan workers. Facing a sticky political situation, the exemption was removed.

The Samoan representative desperately sought to fend off what he was sure would be an economic calamity. He asked the Department of Labor to issue a report examining the potential consequences of the law upon the islands’ economy. The report explained that “nearly 80 percent of workers covered by the FLSA earned under $7.25 per hour. By comparison, if the U.S. minimum wage were increased to the level of the 75th percentile of hourly-paid U.S. workers, it would be raised to $16.50 per hour.” Therefore, the study continued, “there is concern that [the tuna canneries] will be closed prior to the escalation of the minimum wage … and that production will be shifted to facilities outside the U.S.” Ultimately, the Department of Labor concluded that “closure of the tuna canneries will cause a total loss of 8,118 jobs – 45.6 percent of total employment.” (emphasis mine) [iv]

Despite this dire forecast, the law went through. Two years later, the results could not be clearer: Chicken of the Sea closed its cannery and moved its production to a largely automated plant in Georgia,[iv] while StarKist has reduced its workforce and is threatening to leave as well.[v]

If that were to occur, which seems likely, American Samoa would be left with no functioning industry. Although many of the islanders have the size and athletic ability to be drafted into the NFL, clearly football will never serve as the backbone of their economy. By imposing an artificially high minimum wage on American Samoa, without taking into account actual economic conditions on the islands, Washington essentially decided that it was better to have no one working there than have thousands of people working for wages that the politicians felt were substandard.

Meanwhile, just as the minimum wage is destroying jobs in American Samoa, it is destroying jobs here on the mainland. Of course the numbers are fewer because the relative minimum is lower, but the principle is the same. Rather than causing wages to rise (which only do so as a function of increased worker productivity), minimum wage laws simply set the minimal level of productivity a worker must contribute to legally be allowed to work. In the case of American Samoa, tuna canners simply could not deliver $7.25 cents per hour of productivity, so their jobs were eliminated. Rather than being employed at $3.26 per hour (the level prior to the minimum wage hike), they are now unemployed at $7.25 per hour. Which do you think is better?

Among the unintended consequences of congressional “benevolence” are rapidly rising consumer prices, due to the higher shipping costs now necessary to bring consumer goods to the islands. Before the minimum wage hikes destroyed most of the canning jobs, lots of canned tuna were shipped from American Samoa to the U.S. (over 50% of the canned tuna in American markets came from American Samoa). One benefit of all the shipping traffic was a low cost of imports, as ships were coming to the islands anyway to pick up the tuna. However, with fewer ships coming to Samoa to pick up tuna, goods are now much more expensive to import. That is because the round trip cost of the journey must now be factored into import prices, as ships bringing in those goods now leave tuna-free. As a result, consumer prices rose from a 2006 annualized rate of 3%[v] to roughly 20% by 2008.[vi] So, not only is unemployment wide-spread, but the cost of living has risen sharply as well – a double whammy.

This just serves to highlight, once again, how inflexible central planning is compared to free markets. From housing to banking to money itself, the politicians would rather mandate prices that they deem acceptable than listen to the innumerable individual decisions that set market prices. Though not always as transparent as with the Samoan case, the result is the same, every time: economic dislocation, higher unemployment, the boom-bust cycle, and a lower standard of living.

On that note, I must take a step back and qualify some of the remarks I made in last week’s commentary “Poland’s Economy Is No Joke.” Motivated by the Polish Finance Minister’s terrific pro-market opinion piece in the Financial Times, the generally favorable economic statistics coming out of the country, and the impressions I received during my trip to that country a few months ago, I attempted to highlight how free-market reforms can contribute to economic success. Although in my research I did consult a few wise sources (and even the Polish embassy), based on the e-mails that I have subsequently received from readers in Poland, it appears that my portrait of the country’s current administration could have been more balanced.

In particular, my descriptions of the current tax system in Poland did not account for their onerous social security and value-added taxes. In addition, rather than boasting a pro-business agenda that encourages entrepreneurship, as I had argued, Polish citizens have pointed out to me that the labor laws in Poland are still far more restrictive than those of Western Europe (a pretty stodgy place itself). I also appeared to have given the government a pass for the corrupt manner in which the state’s industries were privatized following the fall of communism.

While I did claim that Poland “has continued the process of transforming [itself] into a laissez-faire paradise,” I did not mean to imply that the metamorphosis was even nearly complete. For the record, Poland still has a very long way to go. However, if their leaders can talk the talk, there is always hope they can walk the walk. Then again, politicians always have trouble with this, no matter what language they speak.

Learn more about Schiff and Euro Pacific Capital Here >

[i] 20090608,

Congress Sacks Samoan Economy

Like many football fans around the country, I recently tuned into a heavily promoted 60 Minutes segment on the uncanny ability of tiny American Samoa to produce a steady stream of NFL players. Although it was certainly interesting to learn how Pacific island warrior culture translated seamlessly into the disciplines of American football, and how the island's players adapted to the hard-scrabble terrain and poorly funded athletic fields, the most interesting aspect of the piece concerned economics rather than sports.

In passing, the narrator mentioned that American Samoa had recently experienced major setbacks, both natural and man-made. Earthquakes and tsunamis had left scores dead and inflicted major damage on the islands' infrastructure. More ominously, one of the two major tuna canneries, which together accounted for up to half of the islands' private sector jobs,[i] had closed. If the second cannery closes, as 60 Minutes mentioned is a distinct possibility, American Samoa will become completely dependent on Federal support. Whether the reporters considered the subject off-target for their piece or simply could not connect the dots, the pending economic disaster was left largely unexamined. However, the Samoan situation offers a very clear lesson for the rest of America about how government policies can devastate an economy, and how the road to hell is paved with good intentions.

For generations, American Samoa offered strong advantages for tuna canners. The close proximity to vast Pacific tuna schools, the islands' good port facilities, political association with the United States, and an abundance of relatively inexpensive labor (by American standards) enticed StarKist and Chicken of the Sea to locate their primary canning facilities in American Samoa. Although the workers were paid, in recent years, wages that were below the U.S. minimum, given the low taxes and living costs, these wages were enough to offer the average worker a standard of living that was superior to the denizens of other islands in that area of the Pacific.[ii]

But then, in 2007, Washington came to the "rescue." As part of its efforts to provide a "living wage" for all Americans, Congress passed a law to step up the minimum wage to $7.25 per hour across all U.S. states and territories by 2009.[iii] Understanding that such a law would devastate American Samoa by raising canning costs past the point where the companies could maintain profitability, the non-voting Samoan member of the U.S. House of Representatives convinced Congress to allow an exemption for the islands. However, Republicans raised allegations that Speaker of the House Nancy Pelosi, in whose district both Chicken of the Sea and StarKist had corporate offices, had caved to pressure from big donors and was allowing the continued "exploitation" of Samoan workers. Facing a sticky political situation, the exemption was removed.

The Samoan representative desperately sought to fend off what he was sure would be an economic calamity. He asked the Department of Labor to issue a report examining the potential consequences of the law upon the islands' economy. The report explained that "nearly 80 percent of workers covered by the FLSA earned under $7.25 per hour. By comparison, if the U.S. minimum wage were increased to the level of the 75th percentile of hourly-paid U.S. workers, it would be raised to $16.50 per hour." Therefore, the study continued, "there is concern that [the tuna canneries] will be closed prior to the escalation of the minimum wage ... and that production will be shifted to facilities outside the U.S." Ultimately, the Department of Labor concluded that "closure of the tuna canneries will cause a total loss of 8,118 jobs - 45.6 percent of total employment." (emphasis mine)[iv]

Despite this dire forecast, the law went through. Two years later, the results could not be clearer: Chicken of the Sea closed its cannery and moved its production to a largely automated plant in Georgia,[iv] while StarKist has reduced its workforce and is threatening to leave as well.[v]

If that were to occur, which seems likely, American Samoa would be left with no functioning industry. Although many of the islanders have the size and athletic ability to be drafted into the NFL, clearly football will never serve as the backbone of their economy. By imposing an artificially high minimum wage on American Samoa, without taking into account actual economic conditions on the islands, Washington essentially decided that it was better to have no one working there than have thousands of people working for wages that the politicians felt were substandard.

Meanwhile, just as the minimum wage is destroying jobs in American Samoa, it is destroying jobs here on the mainland. Of course the numbers are fewer because the relative minimum is lower, but the principle is the same. Rather than causing wages to rise (which only do so as a function of increased worker productivity), minimum wage laws simply set the minimal level of productivity a worker must contribute to legally be allowed to work. In the case of American Samoa, tuna canners simply could not deliver $7.25 cents per hour of productivity, so their jobs were eliminated. Rather than being employed at $3.26 per hour (the level prior to the minimum wage hike), they are now unemployed at $7.25 per hour. Which do you think is better?

Among the unintended consequences of congressional "benevolence" are rapidly rising consumer prices, due to the higher shipping costs now necessary to bring consumer goods to the islands. Before the minimum wage hikes destroyed most of the canning jobs, lots of canned tuna were shipped from American Samoa to the U.S. (over 50% of the canned tuna in American markets came from American Samoa). One benefit of all the shipping traffic was a low cost of imports, as ships were coming to the islands anyway to pick up the tuna. However, with fewer ships coming to Samoa to pick up tuna, goods are now much more expensive to import. That is because the round trip cost of the journey must now be factored into import prices, as ships bringing in those goods now leave tuna-free. As a result, consumer prices rose from a 2006 annualized rate of 3%[v] to roughly 20% by 2008.[vi] So, not only is unemployment wide-spread, but the cost of living has risen sharply as well - a double whammy.

This just serves to highlight, once again, how inflexible central planning is compared to free markets. From housing to banking to money itself, the politicians would rather mandate prices that they deem acceptable than listen to the innumerable individual decisions that set market prices. Though not always as transparent as with the Samoan case, the result is the same, every time: economic dislocation, higher unemployment, the boom-bust cycle, and a lower standard of living.

On that note, I must take a step back and qualify some of the remarks I made in last week's commentary "Poland's Economy Is No Joke." Motivated by the Polish Finance Minister's terrific pro-market opinion piece in the Financial Times, the generally favorable economic statistics coming out of the country, and the impressions I received during my trip to that country a few months ago, I attempted to highlight how free-market reforms can contribute to economic success. Although in my research I did consult a few wise sources (and even the Polish embassy), based on the e-mails that I have subsequently received from readers in Poland, it appears that my portrait of the country's current administration could have been more balanced.

In particular, my descriptions of the current tax system in Poland did not account for their onerous social security and value-added taxes. In addition, rather than boasting a pro-business agenda that encourages entrepreneurship, as I had argued, Polish citizens have pointed out to me that the labor laws in Poland are still far more restrictive than those of Western Europe (a pretty stodgy place itself). I also appeared to have given the government a pass for the corrupt manner in which the state's industries were privatized following the fall of communism.

While I did claim that Poland "has continued the process of transforming [itself] into a laissez-faire paradise," I did not mean to imply that the metamorphosis was even nearly complete. For the record, Poland still has a very long way to go. However, if their leaders can talk the talk, there is always hope they can walk the walk. Then again, politicians always have trouble with this, no matter what language they speak.

[i] 20090608, tunaseinersm & 20091028, cia.govlibrarypublicationsthe-world-factbookgeosaq.html[ii] 20080320. List of countries by GDP (PPP) per capita. The World Factbook, United States Central Intelligence Agency (CIA).[iii] 20070525, gpo.govfdsyspkgPLAW-110publ28htmlPLAW-110publ28.htm[iv] 200801, "Impact of reased Minimum Wages on the Economies of American Samoa and the Commonwealth of the Northern Mariana Islands" by the Office of the Assistant Secretary for Policy, U.S. Department of Labor.[v] 20090122 spc.intprismcountryasstats[vi] 20090409. samoanewsonlinemviewstory.php?storyid=5259&edition=1239271200

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CTPP Status Report

U.S. Department of TransportationFederal Highway AdministrationBureau of Transportation StatisticsFederal Transit AdministrationAASHTO Standing Committee on PlanningIn cooperation with the TRB Census Subcommittee

September 2006 Commuting in America III

By Alan Pisarski

Commuting in America III (CIA III) is complete and will be published by the Transportation Research Board (TRB). The report will be broadly distributed through the TRB distribution process as well as special mailings to Congress and State Agencies.

CIA III and its predecessors encompass the history of the working years of the baby boom generation, and now as that group heads off-stage the document considers the sources of new workers to meet future demands. One of the keys to this will be the immigrant population - who they are, what skills they provide, and where will they be located. This population is already having significant impacts on commuting. Another key will be keeping older workers in the labor force longer. This suggests strong needs for employers to go where the skilled workers are or where they want to be and to provide competitive amenities to attract workers.

This will impact days worked, hours worked, departure times, and mode choices. The older workforce varies sharply from the general work force in many attributes of travel time and mode.

CIA III has value for state and local interests as it sets the context for local patterns and trends while establishing benchmarks for local comparisons. Among the national patterns of interest are the following:

  • The journey to work share of all travel continues to decline as other trip purposes grow faster, but the home and the workplace are the two key anchors around which much of that travel occurs.
  • In the 1980s, the national pattern often reflected the local pattern in terms of mode choice with little variation across the country. In the 1990s, regional shifts, particularly in carpooling and transit, resulted in more local variation.
  • The shift to the single occupant vehicle continues but with far less virulence than in the 1980s across all states and metropolitan areas.
  • The suburban shift continues with dramatic changes in commuters leaving their home counties to work. This suggests strong influences on rural to suburb patterns and long distance - "extreme commutes" in the future. It will be important to see how these trends evolve with the increasing costs of fuel.
  • Perhaps the most significant demographic change has been the rise in African American auto ownership.
  • The rise of working at home may be among the key stories of the last few decades - in most places now more significant than walking to work and often rivaling transit in terms of share.
  • The great importance of transit to downtown CBDs is documented with some special work provided by individual metro areas via the TRB Urban Data Committee.
  • Dichotomous patterns are revealed in the datasets that have bearing at the national, state, and regional levels. There are four that are of particular focus in the book:

  • Metro areas above and below 5-million population (we now have 12 such areas with one- third of the nation's population).
  • Workers over and below age 55. These patterns are particularly significant for the future.
  • Workers leaving home before or after 8 a.m. The auto world is a "pre-eight" world.
  • Commuters traveling more or less than 20 minutes.
  • The book closes with the speculation on how past trends will play out in the future and what new patterns and trends are emerging to challenge policy makers and the profession.

    Ordering information:

    Copies are available for sale through TRB. Advanced orders are now being taken, with delivery of the publication expected by the end of October. Order now at

    The full data set comprising an extensive array of special tabulations done by the Census Bureau as part of the CTPP program will be available on the BTS Transtats website (

    The Next CTPP: SCOP Census Data Work Group Activities

    Jonette Kreideweis, Mn DOT

    The AASHTO Standing Committee on Planning (SCOP) Census Data Work Group has been working hard over the last year to develop an action plan for meeting future transportation needs for census based transportation planning products.

    In April 2006, the Work Group sponsored a workshop on "Priority Census Data Uses and Needs for Transportation". The workshop was supported by the FHWA Planning Capacity Building Program and cosponsored by several TRB data committees. The purposes of the workshop were to share information on census data uses, learn more about future census data products, identify census data needs and priorities and scope out a multi-year program of tasks and potential CTPP pooled fund project components.

    The workshop reaffirmed the importance of census data for effective transportation planning. Participants discussed the transition from the census long-form to the new American Community Survey (ACS) and the current financial limitations of FHWA to support census data related work activities. Results of the workshop recommend a future Census Transportation Planning Products (CTPP) pooled fund project made up of a combination of data, training, technical support and research products. A summary of the workshop can be found at

    The results of the census data workshop were presented at the AASHTO SCOP summer meeting in June 2006 in La Jolla, California. AASHTO SCOP members gave the Work Group approval to prepare a detailed CTPP pooled fund project proposal for discussion at the AASHTO Annual Meeting in October 2006.

    A subgroup of the SCOP Census Data Work Group has been meeting over the summer to develop a preliminary list of tasks and costs for a future CTPP. To address priority data, training, technical support and research needs will require a future CTPP pooled fund project in the range of $5.5 - $6.0 million. Subgroup results were discussed during an August SCOP Census Work Group conference call. Work on refinements will continue with the goal of having a CTPP project proposal available for AASHTO SCOP by the end of September 2006. Summaries of AASHTO SCOP Census Data Work Group activities are posted at

    2005 ACS Data Released

    On August 29, 2006, the Census Bureau released economic data from the 2005 ACS and covering the following characteristics:

  • ome
  • Employment status
  • Journey to work
  • Data was released for geographic areas with population more than 65,000.

    On October 3, 2006, CB will release housing characteristics including tenure, vehicle ownership, and place-of-work tables. Data can be accessed via the American Factfinder at:

    Ed Christopher (FHWA), Nanda Srinivasan (FHWA - contractor), and Ken Bryson (Census Bureau) presented a webcast on accessing the latest ACS data. The presentations from the webinar are archived at:

    Because ACS data are collected differently from Census 2000, there are bound to be some differences caused by methodological changes. Some factors to bridge Census 2000 journey-to-work data with ACS data (based on NCHRP 08-48) are posted at

    Ken Bryson's presentation with voice-over is also posted in macromedia format at

    The CTPP WG is also working on developing profiles for the nation, large cities, and MSAs (based on the November 2004 geographic definition of Core Based Statistical Areas used to tabulate 2005 ACS data). These profiles will cover selected journey-to-work tables from 1990, 2000, and 2005 ACS data. The profiles will be posted on the CTPP page at

    The NEW CTPP Northeastern Illinois CTPP Journey to Work Flow Summaries

    Offered On-Line at

    Since 2002, the Regional Transportation ity (RTA) of northeastern Illinois has been providing local and regional transportation agencies access to a wealth of transportation asset information on the RTAMS (Regional Transportation Asset Management System) website. The RTAMS website provides users access to the region's vast collection of detailed transportation and financial data, including data for the second largest transit system in the nation. Users can search and cross-reference RTAMS's data sets, including the location of transportation assets and services, public transit ridership, Tollway traffic volumes, planning studies, transit sales tax revenues and political jurisdictions. The site also provides an interactive map containing over 30 spatial data layers including aerial photography. The RTAMS website is continuously evolving with new data, functionality and contributors. Based on its popularity, a public version of RTAMS has been available since June 2005.

    When the CTPP 2000 (Part 3) was released, the RTA took the lead producing regional-level analyses of Journey-to-Work flows. The analyses included those workers who either live andor work within the RTA six county region. The analysis proved valuable in supporting a number of RTA planning initiatives. The RTA realized that the entire region could benefit from this dataset if it could be offered in an easy to use, interactive form on the RTAMS website.

    In April 2006, RTAMS unveiled its CTPP Work Flow application. The dataset contains flow information for a 37-county region that includes northeastern Illinois, northwestern Indiana and southeastern Wisconsin. The data has been extracted at the TAZ (Traffic Analysis Zone) level, containing over 9,000 geographies. Because of rounding and suppression at the TAZ level (unlike 1990 CTPP) aggregating to higher geographies created a rounding error. It was discovered that aggregating the Part 3 TAZ tabulations for the 6 county-area underreported total workers by 3.4% when compared with the county-to-county level tabulation provided with the CTPP 2000. To resolve this problem, CTPP 2000 work trips by means of transportation were calculated by dividing Table 3-14 (aggregate travel time by means of transportation) by Table 3-08 (mean travel time by means of transportation). This calculation reduced the error when aggregating to larger geographies to nearly zero.

    Users have two methods of identifying flows; using an interactive map or by selecting from a list of over 200 predefined geographies. These predefined geographies include TAZ aggregations of regions, counties, suburban and rural townships and sub-areas of the City of Chicago. By choosing to select from a list, users simply select an Origin-trip-end geography (or all areas) and the Destination trip end geography (or all areas). Using the interactive map, a user can create customized origin and destination geographies built from individual TAZs.

    Result tabulations include the number of workers by means of transportation, as well as average travel time to work by means of transportation. Below is an example of the default summary table of workers originating in Suburban Cook Co. and working in the City of Chicago.

    From the summary table, users have the ability to link to other flow result types. These include; number of workers by mode, percent mode share, and average travel time by mode. Users can also select to view the change in flows from 1990 to 2000 or toggle to the opposite trip end.

    The CTPP Work Flow application provides transportation and planning professionals, elected officials, advocacy organizations and the public a powerful and easy to use tool to access the rich work -trip flow data available in the CTPP. The application greatly reduces the amount of time necessary for users to download, learn and extract flows from the complex CTPP dataset.

    To access the CTPP Journey to Work Flow data, simply go to

    Use of CTPP at the Eastgate MPO, Youngstown, Ohio

    By Kathleen Rodi, Eastgate MPO

    The Eastgate MPO extensively relies on CTPP data for many planning applications. This article showcases two important applications.

    Development of "attractiveness" Variables

    Eastgate staff developed these factors to explain potential population shifts around the region at the geographic level of Traffic Analysis Zones. Based on census and other variables, staff designed a predictive model on "attractiveness variables." This model uses attributes considered by people in deciding where to live to help predict which areas will grow, which areas will remain stable, and which will lose population in the near future (e.g. 2030). The variables included population density, employment, population growth, ome, Housing Age, Housing Starts, Highway access, presence of water and sewer lines, crime rate, income tax and property tax.

    The Census Transportation Planning Package (CTPP) was extremely helpful in creating 2000 base data on population, employment, income and housing characteristic by TAZ. Mahoning and Trumbull Counties have a total of 657 traffic zones.

    Eastgate staff hosted two focus groups to obtain community feedback on their approach to the predictive model and attempted to weight the various variables by assigning relative factors to each. Real estate agents, community leaders, and area planners attended the focus group sessions. Many variables were discussed at great length and then assigned weighted values according to attractiveness andor importance. For example, for developing a factor for income, average household income for a traffic zone was divided by 10 million. ome was weakly weighted because it was felt that a small increase in income might not cause location shifts in place of residence.

    Estimation of Potential Transit Markets

    Using TAZs with high concentration of households with no vehicles, disabled population, or individuals with income below the poverty level, potential transit markets were estimated, and mapped. The CTPP data was overlaid with data on work locations paying less than $20,000 a year to visualize residential and work distributions of potential transit markets.

    CTPP Hotline - 202-366-5000ctppfhwa.dot.gov CTPP

    FHWAElaine MurakamiPH: 206-220-4460FAX: 206-220-7959 elaine.murakamifhwa.dot.gov

    Nanda SrinivasanPH: 202-366-5021FAX: 202-366-7742 nanda.srinivasandot.gov

    Ed Christopher (Urban Data Committee Chair)PH: 708-283-3534FAX: 708-283-3501 edcberwynedm

    FTACharles GoodmanPH: 202-366-1944FAX: 202-493-2478 charles.goodmandot.gov

    BTSPheny SmithPH: 202-366-2817FAX: 202-366-3370 pheny.smithdot.gov

    AASHTODave ClawsonPH: 202-624-5807FAX: 202-624-5806 davidcaashto

    Census Population DivisionPhil SalopekPH: 301-763-2454Fax: 301-457-2481 phillip.a.salopekcensus.gov

    TRB CommitteesEd Christopher (Urban Data Committee Chair)See under FHWA

    Bob Sicko (Census Subcommittee Chair)Mirai AssociatesPH : 425-415-0905FAX : 425-415-0935E-mail: bobmiraiassociatesm

    CTPP Listserve

    The CTPP Listserve serves as a web-forum for posting questions, and sharing information on Census data. Currently, over 700 users are subscribed to the listserve.To subscribe, please register by filling a form posted at:

    For questions on the listserve, please e-mail Ed Christopher at edcberwynedm.

  • Quantum Computing: Schrödinger’s Cat is SO Clever

    9 mins. to read

    The greatest technological leap forward for humanity in the second quarter of the 21st Century will be Quantum Computing (QC). It will accelerate computer processing speeds beyond our imagination. It’s a weird world; and yet the first QC inspired computers are already working on problems of mind-boggling complexity.

    Quantum Theory was formulated in Europe in the 1920s by Max Planck, Niels Bohr and others after Einsteinian Relativity had already become main stream. These two branches of physics have never fully been reconciled with one another. Relativity is the physics of the unspeakably large, while quantum theory is the physics of the unimaginably small. They appear to obey different laws. (Mankind, as Sir Arthur Eddington once ventured, is half way between the two.)

    The un-mathematicised nub of quantum theory is that matter (particles such as electrons) can exist in two places at once. Or even (sorry about this) anywhere in between. Physicists know this due to an experimental technique called diffraction. And they can describe this phenomenon mathematically. Quantum objects like electrons are sometimes observed as particles and sometimes as waves. Or they can be described as both at the same time.

    Conventional computers are based on bytes made up of eight bits. Hence computer scientists use a hexadecimal (base 16) number system because it is easier to express binary number combinations in hexadecimal than it is in any other base number system. Each bit – the lowest addressable component of your PC, laptop or iPad – is either ON or OFF. One or zero. Binary. And all the computing power that we experience arises from those trillions of microscopic switches on computer chips that are either on or off at any given moment.

    Now just try to imagine – if you can – a breed of computer where each addressable bit is not necessarily ON or OFF but both at the same time, or somewhere in between. This would mean that computers are no longer limited to processing information on an on or off binary basis. If this sounds barmy, you are in good company: Einstein himself was deeply uncomfortable with the implications of quantum theory. But the fact is that the mathematics of quantum theory works, even if the philosophical outcomes that arise from it are entirely counterintuitive.

    In 1926 the Austrian physicist Erwin Schrödinger (1887-1961) devised a mathematical equation called the wave function which can yield the probabilities that a particular particle will have specific characteristics when it is observed and measured by a physicist in an experiment. This equation, on which quantum mechanics was constructed, was later refined to use “complex” numbers – that is numbers, which do not reside on the conventional number line. Based on the conjectures which arose from the wave function, in 1935, Schrödinger formulated the thought experiment often referred to as the paradox of Schrödinger’s cat.

    Schrödinger imagined a cat sealed inside a box which contains a radioactive substance. The quantum wave function for the substance gives us a 50:50 chance that the substance will decay over a given time and, by so doing, will detonate a canister of poison which will kill the poor cat. Now, before we open the lid of the box to peek inside, we ask the question: is the cat alive or dead? The standard quantum theorists view based on the wave function mathematics is that, before we peek, the cat is simultaneously both alive and dead. It’s only when we open the lid that we get to find out what really happened to that unfortunate cat[i].

    Going back to the bits and bytes inside your computer, quantum mechanics can describe a bit that is simultaneously one and zero – before we get to test what it actually is. Quantum computation uses quantum bits, which can be in any superposition of states. Superposition is a concept in quantum mechanics which says that, for example, Schrödinger’s wretched cat could be (a) alive, (b) dead, alive and dead… or (for all I know) (d) neither dead nor alive. It also uses another concept from quantum mechanics called entanglement – the idea that two particles (or by extension computer bits) may be invisibly connected although they reside in different places.

    In the 1980s a computer scientist and mathematician named Richard Feynman translated a version of the wave function mathematics into a computer programme that could simulate these weird quantum properties inside a computer. Since then huge advances have been made.

    And there is right now a company based in Vancouver, Palo Alto and Washington DC which is as yet the only company to have sold QC inspired computers. D-Wave Systems . founded by Geordie Rose in 1999 is a private company backed and currently owned by a panel of blue chip venture capital and private equity firms including Kensington Capital Partners, Harris & Harris Group, Goldman Sachs, In-Q-Tel[ii], Draper Fisher Jurvetson, Bezos Expeditions and others. D-Wave Systems is the global leader in the development and manufacture of superconducting quantum computers which operate at very low temperatures. Its systems are already being used by top companies and institutions including Lockheed-Martin (NYSE:LMT), Google-Alphabet (NASDAQ:GOOGL), NASA, and the University of Southern California (USC).

    Geordie Rose, a Canadian ex-wrestler and academic, founded D-Wave Systems after reading a book on quantum computing by Colin Williams, a NASA scientist and a former research assistant to Professor Stephen Hawking. Colin Williams now works at D-Wave. Together, Rose, Williams and a team of top-flight brains developed a computer architecture called adiabatic annealing. (And my spell-checker didn’t even flinch.)

    In 2010 D-Wave Systems released their first commercial system, the D-Wave One quantum computer. Three years later it unveiled the 512-qubit D-Wave Two system. And in 2015 D-Wave announced that the 1000 qubit D-Wave 2X system was available. (A qubit is the common term for a quantum bit inside a quantum computer.) In addition, D-Wave Systems is developing layers of software to make the systems more accessible to users.

    D-Wave has been granted over 110 US patents and has published over 80 peer-reviewed papers in leading scientific journals. But there’s a problem here. The academic world is notoriously sceptical about the advance of science by private corporations. Some academics acknowledge that D-Wave’s machines are operating adiabatically, but not at quantum speed. Some think the machine is an advanced conventional computer but not a quantum computer at all. All think it is a game-changing advance.

    Google teamed up with NASA in 2013 to acquire their D-Wave machine. It is located in Mountain View, California, a few miles from the Googleplex. The machine is literally a three metre high black box which is largely a freezer with a remarkable chip at its core[iii]. The single computer chip is composed not of silicon but of tiny loops of niobium (a rare chemical element) wire cooled to a temperature well below that of deep space – in fact just above absolute zero. Qubits are highly sensitive little blighters – not only must they be kept at super-low temperatures, but a single molecule of air or a mild vibration can disturb them.

    There are also a number of quasi-governmental bodies working on quantum computing. The Russians have set up a body called the Russian Quantum Centre which claims to share research for all[iv]. In the UK the Centre for Quantum Computation (CQC) is an alliance of quantum information research groups at the University of Oxford. It was founded by Professor Artur Ekert, who is credited with inventing quantum cryptography, in 1998. Until recently, the CQC included research groups at the University of Cambridge, but the Cambridge groups now operate as an independent entity called the Cambridge Centre for Quantum Information and Foundations (CQIF)[v]. Lockheed Martin has teamed up with the University of Southern California to form the Quantum Computation Centre (QCC)[vi]. Moreover, it has been reported that China is preparing to launch a communications satellite which relies on quantum principles, the signals from which will be impossible for any other party to decode. With all this research underway it is likely that D-Wave Systems will have some competition for its machines soon.

    To what use might an increase in processing speed in the order of 100 million times current levels be put?

    First, as I have outlined before, medicine might be a major beneficiary by collating and interpolating enormous quantities of medical data quickly using algorithms of a sophistication that we can barely imagine now. I don’t see why the NHS couldn’t map everyone’s genome in the reasonably near future and then track that genome database against the entire data population of health outcomes. You can feed in all your aches and pains; the medics will update all your observed conditions and procedures. Very soon you might get an email on your implanted smartphone before you have a heart attack saying Dear Customer – you are about to have a heart attack – a self-driving ambulance with robot paramedics is on its way. Don’t panic.

    Second, there are still problems in pure mathematics that cannot be solved by the computers of today because it would take billions of years to crunch the numbers. The general rubric of optimization can be applied to a host of problems – from forecasting stock market prices to predicting the impact of climate change – but some optimisation problems may require entirely new mathematical tools. In my piece on European banks in the March edition of MI magazine I explained how Benoit B Mandelbrot envisioned that financial risk management might be revolutionised by fractal mathematics. We are still waiting for the breakthrough.

    Third, the growing problems of cyber-security – hacking and all that – might be resolved definitively – at last. It might be possible do this by anticipating hacking activity before it actually happens, doing Edward Snowdon and his ilk out of a job. But this is intimately tied up with AI.

    Fourth, self-driving vehicles and even self-flying aircraft will become standard. Lockheed Martin, in collaboration with NASA, is already using a D-Wave Systems machine to optimise flight control systems for a next-generation supersonic passenger jet to be delivered around 2030.

    Most importantly, and fifth, quantum computing will accelerate the arrival of Artificial Intelligence (AI). Geordie Rose thinks that machines will “outpace us” by 2028[vii]. AlphabetGoogle is already using the D-Wave X2 machine in its AI programme, for example to test image recognition software for mobile phones. There are already cases where computers write the algorithms that other computer systems use. Personally, I am a mild AI sceptic, in the sense that I believe, for philosophical reasons, that machines can crunch numbers ad nauseam; but can you programme creativity and intuition into things that are incapable of any sensory experience? The human brain, after all, is non-computational. That said I am sure that there will be Turing Machines[viii] in operation well within my lifetime. And I am now persuaded that space missions will reach the exoplanets sooner than we think – but with no “humans” on board.

    Sometimes it seems that technology is accelerating so rapidly that our brains are being subjected to intolerable G-forces. We’d better get used to it. Schrödinger’s cat is much cleverer than we can grasp – even though it’s probably dead!

    [i] See a discussion of the paradox in Quantum of Solitude by Jon Cartwright, New Scientist, 16 July 2016, page 30.

    [ii] In-Q-Tel is the venture capital arm of the CIA.

    [iii] See Clive Thompson’s article in Wired of 20 May 2014 available at:

    [iv]

    [v] See:

    [vi]

    [vii] See Metro, Friday, 01 July 2016.

    [viii] A Turing Machine is a computer that could trick you into thinking it was human if obscured behind a curtain.  This was Alan Turing’s definition of what an intelligent machine would be.

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