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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1171:

  Which of the following is true with regard to norms?

  A. Norms are similar from culture to culture.
  B. Norms reinforce the group's values and common identity.
  C. Norms cannot be enforced by ridicule or criticism.
  D. Norms are often written in an organization's policy manual.
  B. Norms reinforce the group's values and common identity.

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  Explanation

  Norms often provide a common identity for a group. Members feel they are part of a cohesive group with members who also share the same values.

• Question 1172:

  Which of the following controls would be most efficient to protect business data from corruption and errors?

  A. Controls to ensure data is unable to be accessed without authorization
  B. Controls to calculate batch totals to identify an error before approval
  C. Controls to encrypt the data so that corruption is likely ineffective
  D. Controls to quickly identify malicious intrusion attempts
  C. Controls to encrypt the data so that corruption is likely ineffective

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  Explanation

• Question 1173:

  An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement. Which of the following approaches is most appropriate to address this concern?

  A. The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.
  B. The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.
  C. The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.
  D. The organization should work with the service provider to review the current agreement and expectations relating to objectives, processes, and overall performance.
  B. The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.

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  Explanation

• Question 1174:

  Which of the following represents a basis for consolidation under the International Financial Reporting Standards?

  A. Variable entity approach
  B. Control ownership
  C. Risk and reward
  D. Voting interest
  D. Voting interest

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  Explanation

• Question 1175:

  Entry into a new business may be made by acquisition. The analysis differs from that for entry by internal development. A key point is that prices are set in the market for acquisitions. Accordingly, a buyer should most likely expect to make above- average profits when the

  A. Market is active and well organized.
  B. Seller can choose to continue operating the business.
  C. Market for acquisitions is imperfect.
  D. Buyer adopts a sequential entry strategy.
  C. Market for acquisitions is imperfect.

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  Explanation

  Acquisitions are more likely to earn above-average profits when the expected present value to the seller of continuing operations is low, e.g., because the seller needs funds, has capital limits, or has management weaknesses. Above-average profits also are more likely when the market for acquisitions is imperfect. For example, (1) the buyer may have better information, (2) there are few bidders, (3) the economy is weak, (4) the seller is weak, or (5) the seller has reasons to sell other than profit maximization. Moreover, the buyer may have a unique ability to operate the seller.

• Question 1176:

  Which of the following is a disadvantage of selecting a commercial software package rather than developing an applicationinternally?

  A. Lack of flexibility.
  B. Incompatibility with client/server technology.
  C. Employee resistance to change.
  D. Inadequate technical support.
  A. Lack of flexibility.

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  Explanation

• Question 1177:

  Tolerating silence, asking open-ended questions, and paraphrasing are three aids to more effective:

  A. Meetings.
  B. Listening.
  C. Interviews.
  D. Feedback.
  B. Listening.

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  Explanation

  Listening entails decoding and understanding the first message sent. The sender then becomes a listener with respect to the feedback. Hence, listening is necessary at both ends of the communication channel. Other aids to effective listening are using body language to encourage the speaker, showing appropriate emotion to signify sympathy, understanding and correcting for one's biases, avoiding making premature judgments, and briefly summarizing what has been said.

• Question 1178:

  For a multinational firm, which of the following is a disadvantage of an ethnocentric staffing policy in which all key management positions are filled by parent-company nationals?

  A. An ethnocentric staffing policy significantly raises compensation, training, and staffing costs.
  B. An ethnocentric staffing policy produces resentment among the firm's employees in host countries.
  C. An ethnocentric staffing policy limits career mobility for parent-country nationals.
  D. An ethnocentric staffing policy isolates headquarters from foreign subsidiaries.
  B. An ethnocentric staffing policy produces resentment among the firm's employees in host countries.

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  Explanation

  An ethnocentric staffing policy has the advantage that expatriates may understand the objectives, policies, and procedures of the parent firm better than local employees do. However, ethnocentrism in hiring has the following disadvantages, among others:(1) Expatriate managers have difficulty in adapting to a new culture, language, and physical environment;

  (2)

  training and relocation costs may be high;

  (3)

  host-country governments prefer local control; (4) the morale and performance of host-country employees will suffer.

• Question 1179:

  Which of the following statements is true concerning the basic accounting treatment of a partnership?

  A. The initial investment of each partner should be recorded at book value.
  B. The ownership ratio identifies the basis for dividing net income and net loss.
  C. A partner's capital only changes due to net income or net loss.
  D. The basis for sharing net incomes or net losses must be fixed.
  B. The ownership ratio identifies the basis for dividing net income and net loss.

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  Explanation

• Question 1180:

  Which of the following controls helps protect externally stored sensitive or confidential data from cyberthreats?

  A. Secure configurations and access controls.
  B. Strong vendor contracts with control reports provided by service organizations.
  C. Active and frequent monitoring of network traffic activities.
  D. Firewalls to block unauthorized processing of transactions.
  C. Active and frequent monitoring of network traffic activities.

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  Explanation