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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1091:

  Impediments to global competition may increase direct costs, make management more difficult, be imposed by governments or other institutions, or consist of resource limitations. Which of the following is most likely to be an impediment to global competition?

  A. A certain nation has a competitive advantage regarding the cost of producing a product.
  B. Proprietary technology provides a competitive advantage regarding the quality of a product.
  C. The product is highly differentiated.
  D. Product needs vary from country to country.
  D. Product needs vary from country to country.

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  Explanation

  Product needs may differ from country to country because of culture, climate, degree of economic development, income, legal requirements, technical standards, and other factors. This barrier inhibits global procurement and achievement of economies of scale and experience. The height of the barrier depends on the costs of product modifications. Complex segmentation within geographic markets has similar effects.

• Question 1092:

  Which of the following are conflict triggers?

  A. Deadlines.
  B. Policies, procedures, rules, or other standards viewed by employees as unfair.
  C. Not meeting expectations.
  D. All of the answers are correct.
  D. All of the answers are correct.

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  Explanation

  Deadlines are conflict triggers because time pressures may induce better performance (constructive) or anger and frustration (destructive). Polices, procedures, rules, or other standards viewed by employees as unfair are conflict triggers and should be changed to avoid competitive conflict if very unpopular. Not meeting expectations is a conflict trigger, but the problem can be avoided through clarifying in advance the expectations employees have about their jobs.

• Question 1093:

  Which of the following statements is true regarding the data dictionary?

  A. The data dictionary includes system tables and program files of a database.
  B. The data dictionary describes the content of information stored in the database.
  C. The data dictionary specifies objects such as users, permissions, and groups.
  D. The data dictionary includes system backup and encryption keys.
  B. The data dictionary describes the content of information stored in the database.

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  Explanation

  https://docs.oracle.com/cd/B10501_01/server.920/a96524/c05dicti.htm

• Question 1094:

  In the current year, a merchandising organization had an inventory turnover ratio of 3. 0, which was less than the industry average of 6. 5.

  Which of the following offers the most likely explanation for this difference?

  A. The organization has understated the amount of inventory in its financial statements
  B. The organization has overstated the cost of purchases in its financial statements.
  C. The organization is holding obsolete or damaged items in its inventory
  D. The organization experienced an unexpectedly large increase in sales shortly before year end.
  C. The organization is holding obsolete or damaged items in its inventory

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  Explanation

• Question 1095:

  Which of the following capital budgeting techniques considers the time value of money?

  A. Annual rate of return
  B. Incremental analysis
  C. Discounted cash flow
  D. Cash payback
  C. Discounted cash flow

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  Explanation

• Question 1096:

  Which of the following factors is least typical of an industry that faces intense competitive rivalry?

  A. Price-cutting.
  B. Large advertising budgets.
  C. Frequent introduction of new products.
  D. A high threat of substitutes.
  D. A high threat of substitutes.

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  Explanation

  A high threat of substitutes reduces the attractiveness of an industry. It tends to increase the price elasticity of demand and therefore limits price increases and profit margins. If other factors are constant, fewer entrants result in less intense competition.

• Question 1097:

  Which of the following is a strategy that organizations can use to stimulate innovation?

  1. Source from the most advanced suppliers.

  2. Establish employee programs that reward initiative.

  3. Identify best practice competitors as motivators.

  4. Ensure that performance targets are always achieved.

  A. 1 and 3 only
  B. 2 and 4 only
  C. 1, 2, and 3 only
  D. 1, 2, 3, and 4
  C. 1, 2, and 3 only

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  Explanation

• Question 1098:

  Auditor 1 and Auditor 2 are working on similar projects. After looking at Auditor 2's work, Auditor 1 informs Auditor 2 that Auditor 2's project contains many errors and is not acceptable. Auditor 1 discusses with Auditor 2 ways to improve to prevent the errors from happening again. Auditor 2 acknowledges the mistakes and vows to work harder. Auditor 2 listens to Auditor's 1 suggestions, corrects the errors on the current project, and returns a highquality project. This is an example of:

  A. Cooperative conflict.
  B. Competitive conflict.
  C. Destructive conflict.
  D. None of the answers are correct.
  A. Cooperative conflict.

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  Explanation

  Auditor 1's conflict with Auditor 2 is productive because dialogue between the two workers is productive. The workers share the same goals for a high-quality project.

• Question 1099:

  In what form of organization does an employee report to multiple managers?

  A. Bureaucracy.
  B. Matrix.
  C. Departmental.
  D. Mechanistic.
  B. Matrix.

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  Explanation

  A matrix organization project management) is characterized by vertical and horizontal lines of authority. The project manager borrows specialists from line functions as needed. This manager's authority is limited to the project, and the specialists will otherwise report to the line managers.

• Question 1100:

  The process of scenario planning begins with which of the following steps?

  A. Determining the trends that will influence key factors in the organization's environment.
  B. Selecting the issue or decision that will impact how the organization conducts future business.
  C. Selecting leading indicators to alert the organization of future developments.
  D. Identifying how customers, suppliers, competitors, employees, and other stakeholders will react.
  B. Selecting the issue or decision that will impact how the organization conducts future business.

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  Explanation