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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1191:

  Which of the following conflict resolution techniques has the goal of maintaining harmonious relationships by placing another's needs and concerns first?

  A. Accommodation.
  B. Compromise.
  C. Collaboration.
  D. Avoidance.
  A. Accommodation.

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  Explanation

  The goal of accommodation is maintaining harmonious relationships by placing an emphasis on another's needs and concerns.

• Question 1192:

  Which is the least effective form of risk management?

  A. Systems-based preventive control.
  B. People-based preventive control.
  C. Systems-based detective control.
  D. People-based detective control.
  D. People-based detective control.

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  Explanation

• Question 1193:

  An internal auditor considers the financial statement of an organization as part of a financial assurance engagement. The auditor expresses the organization's electricity and depreciation expenses as a percentage of revenue to be 10% and 7% respectively. Which of the following techniques was used by the internal auditor in this calculation?

  A. Horizontal analysis.
  B. Vertical analysis.
  C. Ratio analysis.
  D. Trend analysis.
  C. Ratio analysis.

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  Explanation

• Question 1194:

  At the introduction stage of an innovative product, the profit growth is normally slow due to

  A. Expensive sales promotion.
  B. High competition.
  C. A mass market.
  D. Available alternatives.
  A. Expensive sales promotion.

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  Explanation

  The introduction stage is characterized by slow sales growth and lack of profits because of the high expenses of promotion and selective distribution to generate awareness of the product and encourage customers to try it. Thus, the per-customer cost is high. Competitors are few, basic versions of the product are produced, and higher-income customers (innovators) are usually targeted. Cost-plus prices are charged. They may initially be high to permit cost recovery when unit sales are low. The strategy is to infiltrate the market, plan for financing to cope with losses, build supplier relations, increase production and marketing efforts, and plan for competition.

• Question 1195:

  Which of the following elements of an organization requires people to be accountable to superiors?

  A. Coordination of effort.
  B. Division of labor.
  C. Common goal or purpose.
  D. Hierarchy of authority.
  D. Hierarchy of authority.

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  Explanation

  A hierarchy of authority requires people to be accountable to their superiors in the hierarchy.

• Question 1196:

  A senior payroll accountant was responsible for three business units. When the number of employees increased considerably, another accountant was hired and became responsible for one of the units. However, an access rights attestation from the senior payroll accountant remained the same, despite an internal policy requiring payroll access to be restricted. Which of the following controls most likely failed?

  A. Reauthorization controls.
  B. Authorization controls.
  C. Authentication controls.
  D. Segregation of duties.
  D. Segregation of duties.

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  Explanation

• Question 1197:

  Which of the following best describes a cost synergy?

  A. Recycling of by-products.
  B. Selling one product strengthens sales of another product.
  C. Transferring knowledge to new uses.
  D. Acquiring new management skills.
  A. Recycling of by-products.

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  Explanation

  Cost synergy results in cost reduction. It manifests itself in many ways, for example, in recycling of by- products or in the design, production, marketing, and sales of a line of products by the same enterprise.

• Question 1198:

  When supervising employees, the behavior most likely to attain long-term positive results for a manager would be to:

  A. Discipline employees immediately using oral reprimands, written warnings, and temporary suspensions.
  B. Hold weekly meetings during which employees are reminded of work procedures and are praised for the week's accomplishments.
  C. Praise employees on a random schedule and link rewards to performance.
  D. Tell employees that working overtime now will result in a better performance review in 6 months.
  C. Praise employees on a random schedule and link rewards to performance.

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  Explanation

  Variable-interval schedules of reinforcement lead to higher performance. Employees are more alert because of the uncertainty involved, and performance and reward are connected.

• Question 1199:

  According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?

  1. Organizationalgovernance.

  2. Organizationaloperations.

  3. Organizational information systems.

  4. Organizationalstructure.

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

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  Explanation

• Question 1200:

  A global firm establishes a cost-based price for the firm's product in each country. The most likely negative outcome is that this pricing strategy will

  A. Set too high a price in countries where the firm's costs are high.
  B. Overprice the product in some markets and underprice the product in others.
  C. Create a gray market.
  D. Result in dumping.
  A. Set too high a price in countries where the firm's costs are high.

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  Explanation

  A firm may set a cost-based price in each market with a standard markup. In a region or country where costs are high, this strategy may result in prices that are too high to be competitive within the local market.