IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 101:

  Which of the following indicates a high performance team?

  A. Pride in the team leader.
  B. Quick agreement on the first proposed solution for problems facing the team.
  C. Care in risk-taking.
  D. Commitment to personal growth of team members.
  D. Commitment to personal growth of team members.

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  Explanation

  Team effectiveness is reflected in achievement of objectives, innovation, adaptability, commitment, and favorable evaluations by senior management. According to Hans Thamhain, team effectiveness is determined by three sets of interdependent factors. Team effectiveness requires that all factors need to be addressed continually. A high- performance team is committed to the personal growth of its team members.

• Question 102:

  Management decides to accept the risk on a significant audit observation related to the organization's exposure to fraud risk. The chief audit executive considers the finding to have a high residual risk. Which of the following steps should be performed last?

  A. Gather risk appetite data
  B. Inform the internal legal counsel
  C. Inform the board
  D. Consult with the organization's regulators
  D. Consult with the organization's regulators

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  Explanation

  The CAE must first gather data on risk appetite and discuss the matter with senior management. If unresolved, the CAE then escalates to the board (Option C). Only if the board accepts the risk and the CAE believes the exposure remains

  unacceptable should the final step involve informing regulators (Option D) when required by law or regulation.

  Thus, the correct answer for the last step is consulting with regulators (Option D).

  IIA Standards -Standard 2600: Communicating the Acceptance of Risks.

• Question 103:

  A purchasing agent placed a rush telephone order with a supplier. The clerk in the supplier's office repeated the order specifications back to the purchasing agent. No written confirmations were exchanged. The shipment arrived late and was of the wrong quantity.

  However, the purchasing agent was unable to prove that the shipment was unsatisfactory.What link of the communication chain has failed in this scenario?

  A. Encoding.
  B. Decoding.
  C. Medium.
  D. Feedback.
  C. Medium.

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  Explanation

  In the communication process, the medium is the channel through which the communication flows. The failure in this case was caused by the choice of a medium that did not create a permanent record of the facts of the communication. A multinational firm was attempting to buy a controlling interest in a medium size US $10 million annual sales) foreign metal-working firm. The multinational firm's negotiator in the foreign country sent the following email:The foreign firm won't deal unless 51% ownership." The executive committee of the multinational firm, not wanting a minority interest, then canceled the deal. Upon returning to the multinational firm, the negotiator pointed out that the foreign firm wanted to sell no more than 51% ownership in order to retain at least 49%. Thus, the deal could have been made.

• Question 104:

  The manager of customer service checking at the bank is most likely to encounter conflicts) because of:

  A. The department's reliance on the savings manager and the money market manager.
  B. The manager of customer service checking providing services for customers who do not have checking accounts.
  C. The requirement that the manager of customer service checking must report directly to both the president and the vice president for customer accounts.
  D. A potential disagreement with the director of personnel about a subordinate's performance appraisal.
  D. A potential disagreement with the director of personnel about a subordinate's performance appraisal.

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  Explanation

  The director of personnel DP) must coordinate all employee evaluations. Although the manager of checking services is in a line position that is not under the DP, s)he works with the DP when hiring, dismissing, transferring, or evaluating employees.

• Question 105:

  Which of the following is false with regard to quality circles and self-managed teams?

  A. Managerial acceptance by tradition-oriented managers.
  B. Self-managed teams are assigned by management, and quality circle teams are voluntary.
  C. Self-managed teams and quality circles often have better cohesion among members.
  D. Self-managed teams and quality circles are often able to help the organization operate more efficiently and effectively.
  A. Managerial acceptance by tradition-oriented managers.

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  Explanation

  Managerial acceptance is the primary obstacle to adoption of self-managed teams.Tradition orientedmanagers often perceive the loss of authority to a self-managed team as a threat to their status.

• Question 106:

  Which of the following leadership types is best known as an agent of change?

  A. Participative leader.
  B. Traitist leader.
  C. Transformational leader.
  D. Free-rein leader.
  C. Transformational leader.

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  Explanation

  A transformational leader is an agent of change who attempts to inspire the members of the organization to aspire to, and to achieve, more than they thought was possible. Transformational leadership emphasizes vision, development of the individual, empowerment of the worker, and the challenging of traditional assumptions. The transformational leader normally has charisma, is motivational, provides intellectual stimulation to workers, and gives individualized consideration.

• Question 107:

  Which of the following items represents the first thing that should be done with obtained data in the data analytics process?

  A. Verify completeness and accuracy.
  B. Verify existence and accuracy.
  C. Verify completeness and integrity.
  D. Verify existence and completeness.
  A. Verify completeness and accuracy.

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  Explanation

• Question 108:

  During disaster recovery planning, the organization established a recovery point objective. Which of the following best describes this concept?

  A. The maximum tolerable downtime after the occurrence of an incident.
  B. The maximum tolerable data loss after the occurrence of an incident.
  C. The maximum tolerable risk related to the occurrence of an incident.
  D. The minimum recovery resources needed after the occurrence of an incident.
  B. The maximum tolerable data loss after the occurrence of an incident.

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  Explanation

• Question 109:

  Advantages of decentralization include all of the following except:

  A. Decisions are more easily made.
  B. Managers' motivation increases.
  C. Greater uniformity in decisions.
  D. Problems can be dealt with on the spot.
  C. Greater uniformity in decisions.

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  Explanation

  Organizational design should achieve a balance between centralization and decentralization. The main benefits of centralization are more effective control and reduced costs through resource sharing. The main benefits of decentralization are flexibility and adaptability that permit a rapid response to changes in circumstances. Accordingly, increased uniformity in decision making is an advantage of centralization. It reflects the benefit of more effective control.

• Question 110:

  Which of the following would best prevent unauthorized external changes to an organization's data?

  A. Antivirus software, firewall, data encryption.
  B. Firewall, data encryption, backup procedures.
  C. Antivirus software, firewall, backup procedures.
  D. Antivirus software, data encryption, change logs.
  A. Antivirus software, firewall, data encryption.

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  Explanation