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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1251:

  A likely effect of a bureaucratic structure on employee motivation is that:

  A. Employee performance will be mediocre because of inflexible standards and impersonal surroundings.
  B. An employee will pursue organizational goals because of his/her participation in establishing them.
  C. Morale will be high because of each employee's feeling of belonging and ownership.
  D. Job enrichment will be high because of each employee's involvement in developing and adapting his/her job description and required tasks.
  A. Employee performance will be mediocre because of inflexible standards and impersonal surroundings.

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  Explanation

  In a bureaucracy, standards for evaluating job performance do not fluctuate because required tasks never change. The work environment is impersonal, which limits individual growth of employees because no incentive for extraordinary performance is present.

• Question 1252:

  According to IIA guidance, which of the following statements is true regarding analytical procedures?

  A. Data relationships are assumed to exist and to continue where no known conflicting conditions exist.
  B. Analytical procedures are intended primarily to ensure the accuracy of the information being examined.
  C. Data relationships cannot include comparisons between operational and statistical data.
  D. Analytical procedures can be used to identify unexpected differences, but cannot be used to identify the absence of differences.
  B. Analytical procedures are intended primarily to ensure the accuracy of the information being examined.

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  Explanation

• Question 1253:

  An internal audit engagement team found that the risk register of the project under review did not include significant risks identified by the internal audit function. The project manager explained that risk register preparations are facilitated by risk managers and that each project's risk review follows the same set of questions.

  Which of the following recommendations will likely add the greatest value to the project management process of the organization?

  A. Update the risk register of the project with the newly identified risks
  B. Train senior management on risk management principles
  C. Revise the methodology of the project risk identification process
  D. Reassign the responsibility of risk register completion to risk managers
  C. Revise the methodology of the project risk identification process

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  Explanation

  The root cause of the missing significant risks lies in the methodology used for risk identification. If the process relies too rigidly on a standard set of questions, it may overlook critical risks. By revising the risk identification methodology, the

  organization ensures that future projects capture relevant risks comprehensively and consistently, adding long-term value.

  Option A addresses only the current project, not the underlying issue. Option B may improve knowledge but does not fix the flawed process. Option D merely shifts responsibility but does not address the methodology weakness.

  IIA Standards - Standard 2120: Risk Management.

• Question 1254:

  Which of the following statements is true regarding the resolution of interpersonal conflict?

  A. Unrealized expectations can be avoided with open and honest discussion.
  B. Reorganization would probably not help ambiguous or overlapping jurisdictions.
  C. Deferring action should be used until there is sufficient time to fully deal with the issue.
  D. Timely and unambiguous clarification of roles and responsibilities will eliminate most interpersonal conflict.
  A. Unrealized expectations can be avoided with open and honest discussion.

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  Explanation

• Question 1255:

  Usually, the cheapest way to gain market share is by targeting what class of competitors?

  A. Close competitors.
  B. Distant competitors.
  C. Weak competitors.
  D. Bad competitors.
  C. Weak competitors.

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  Explanation

  Using the results of a customer value analysis, a firm may target a given class of competitors in order to gain market share. Although there are various methods, targeting weak competitors is usually the cheapest way to gain market share because weak competitors generally do not offer much resistance.

• Question 1256:

  Which of the following methods is most closely associated to year over year trends?

  A. Horizontal analysis
  B. Vertical analysis
  C. Common-size analysis D. Ratio analysis
  A. Horizontal analysis

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  Explanation

• Question 1257:

  Which of the following is a key characteristic of a zero-based budget?

  A. A zero-based budget provides estimates of costs that would be incurred under different levels of activity.
  B. A zero-based budget maintains focus on the budgeting process.
  C. A zero-based budget is prepared each year and requires each item of expenditure to be justified.
  D. A zero-based budget uses input from lower-level and middle-level managers to formulate budget plans.
  C. A zero-based budget is prepared each year and requires each item of expenditure to be justified.

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  Explanation

• Question 1258:

  Which of the following is an example of a two-party negotiation?

  A. A person sells a car to a used car dealer.
  B. A person requests a financial institution to pay another person.
  C. A person sells stock through a broker.
  D. A person sells a house through a real estate agent.
  A. A person sells a car to a used car dealer.

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  Explanation

  A person's sale of a car to a used car dealer is an example of a two-party negotiation. Only the seller and dealer are involved in the negotiations.

• Question 1259:

  Which of the following is a characteristic of just-in-time inventory management systems?

  A. Users determine the optimal level of safety stocks.
  B. They are applicable only to large organizations.
  C. They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.
  D. They rely heavily on high quality materials.
  D. They rely heavily on high quality materials.

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  Explanation

• Question 1260:

  Which of the following would best contribute to the success of a guest auditor program that allows people from other areas of the organization to serve as subject matter experts?

  A. Selecting guest auditors whose work has recently been audited by the internal audit function
  B. Recommending the guest auditor to design the internal audit program and perform testing procedures
  C. Soliciting feedback from the guest auditor once the engagement is complete
  D. Enabling the guest auditor to interact with internal audit staff to identify mutually beneficial opportunities
  D. Enabling the guest auditor to interact with internal audit staff to identify mutually beneficial opportunities

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  Explanation

  The purpose of a guest auditor program is to leverage subject matter expertise from other areas while also enhancing collaboration and mutual learning between business units and internal audit. Allowing guest auditors to interact with internal

  audit staff fosters knowledge sharing, trust, and future cooperation.

  Option A may create conflicts of interest. Option B compromises independence by allowing guest auditors to design and test audit procedures. Option C provides feedback but occurs after the engagement, not during.

  IIA Practice Guide - Leveraging Guest Auditors and Subject Matter Experts.