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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1261:

  The leadership of an organization encourages employees to form voluntary problem- solving groups whereby several employees from the same work area meet regularity during work hours to discuss improvements and creative ways to reduce costs.

  Which of the following best describes this approach?

  A. Open-book management
  B. Quality control circles
  C. Self-managed teams
  D. Cross-functional teams
  C. Self-managed teams

  ---

  Explanation

• Question 1262:

  According to IIA guidance, which of the following is a primary component of a network security strategy?

  A. Application input controls
  B. Firewall controls.
  C. Transmission encryption controls
  D. Change management controls
  B. Firewall controls.

  ---

  Explanation

• Question 1263:

  Centralization and decentralization are defined according to the relative delegation ofdecision-makingauthority by top management. Many managers believe that decentralized organizations have significant advantages over centralized organizations. A major advantage of a decentralized organization is that:

  A. Decentralized organizations are easier to control.
  B. Decentralized structures streamline organizations and eliminate duplication of resources.
  C. Decentralized organizations have fewer managers than centralized organizations.
  D. Decentralized organizations encourage increased initiative among employees.
  D. Decentralized organizations encourage increased initiative among employees.

  ---

  Explanation

  A decentralized organization allows lower level employees to participate in decision making. This increased involvement encourages initiative and creative thinking and is especially appropriate in complex and rapidly changing environments.

• Question 1264:

  Which of the following is a market-oriented definition of a business versus a product- oriented definition of a business?

  A. Making air conditioners and furnaces.
  B. Supplying energy.
  C. Producing movies.
  D. Selling men's shirts and pants.
  B. Supplying energy.

  ---

  Explanation

  Businesses should be defined in market terms, that is, in terms of needs and customer groups. Moreover, a distinction should be made between a target market definition and a strategic market definition. For example, a target market for a railroad might be freight hauling, but a strategic market might be transportation of any goods and people. Accordingly, stating that a business supplies energy is a market-oriented definition as opposed to the product-oriented definition. Moreover, it is also a strategic market definition.

• Question 1265:

  People with a high need for achievement usually do not:

  A. Perform best when they perceive risks are high.
  B. Seek situations in which they can attain personal responsibility for problem solving.
  C. Function effectively as salespeople.
  D. Prefer frequent and unambiguous feedback.
  A. Perform best when they perceive risks are high.

  ---

  Explanation

  People with a high need for achievement prefer tasks of intermediate difficulty. They want success or failure to be the result of their own actions. High achievers avoid easy tasks because of the lack of challenge and difficult tasks because of the low probability of success.

• Question 1266:

  Communication is the process by which meaning is conveyed between people. According tocommunications theory:

  A. The process has three elements:sender, medium, receiver.
  B. One-directional communication is usually most effective.
  C. Communication is the message actually received, not what is transmitted.
  D. Informal communications are usually to be avoided because of their inaccuracy.
  C. Communication is the message actually received, not what is transmitted.

  ---

  Explanation

  The communication process has five elements:the sender, the symbols in which the message is encoded, the medium through which the message flows, the receiver, and feedback. Because the effectiveness of communication can be known only by its impact on the receiver and the perceived change in the receiver's behavior, the received message is what is communicated. The sent message may be garbled in encoding, in transmission, or in the receiver's decoding.

• Question 1267:

  Routine tasks, which have few exceptions and problems that are easy to analyze, are conducive to:

  A. Formalized structure, in which procedures manuals and job descriptions are common.
  B. Decentralized decision making, in which decisions are pushed downward in the organization.
  C. Organic structures that emphasize adaptability and flexibility to changing circumstances.
  D. High degrees of job satisfaction on the part of the employees performing them.
  A. Formalized structure, in which procedures manuals and job descriptions are common.

  ---

  Explanation

  Technology has been viewed in terms of two dimensions:task variability and problem analyzability, or the exceptions encountered in work and the search procedures for responding to the exceptions, respectively. Routine tasks have few exceptions, and the search for solutions is well defined. Because routine tasks change little overtime, they are well suited to a mechanistic structure. One characteristic of such a structure is high formalization.

• Question 1268:

  The advantages of vertical integration include:

  A. Increases in incentives.
  B. The ability to apply the same managerial methods to all subunits.
  C. The need to balance the operations of subunits.
  D. Stable relationships between internal sellers and buyers.
  D. Stable relationships between internal sellers and buyers.

  ---

  Explanation

  Stable relationships between internal sellers and buyers create economies because they need not fear loss of the related buyers and sellers. They also need not fear undue economic pressure from each other. Furthermore, because the relationship is locked in, more efficient procedures for their relationship (e.g., dedicated controls and records) may be implemented. Another advantage is that internal sellers and buyers may more fully adapt to each other's needs than they would or could in dealings with outsiders.

• Question 1269:

  Which one of the following statements about human perception and human perception's role in the communication process is false?

  A. Perception is used to interpret information from the environment.
  B. Perception can distort communication only at the end of the communication process.
  C. Selective perception refers to the tendency to remember what we prefer and to forget what we are uncomfortable with.
  D. Stereotyping is a form of perceptual organization.
  B. Perception can distort communication only at the end of the communication process.

  ---

  Explanation

  Managers must always consider the perceptions of a message recipient. Recipients vary in their perception of messages because of background, language, education, attitudes toward the sender such as stereotyping) and job, etc. This variance can result in communication distortion at any stage of the communication process.

• Question 1270:

  When preparing the annual internal audit plan, which of the following should the chief audit executive (CAE) consider to optimize efficiency and effectiveness?

  A. The CAE should review the objectives and scope of the external audit plan and consider including audits with the same objectives and scope to ensure thorough coverage of the area
  B. The CAE should review the audit plan prepared by the compliance department and coordinate any audits in the same areas to reduce duplication of objectives and minimize disruption to the area under review
  C. The CAE should avoid reviewing plans by internal or external assurance providers to increase effectiveness and reduce bias in internal audit selection
  D. The CAE should review operational quality assurance audit plans, place reliance on the areas covered, and exclude those areas from final consideration in the annual internal audit plan
  B. The CAE should review the audit plan prepared by the compliance department and coordinate any audits in the same areas to reduce duplication of objectives and minimize disruption to the area under review

  ---

  Explanation

  To optimize efficiency, the CAE should coordinate with other assurance providers such as compliance, quality assurance, and external auditors. This reduces duplication, minimizes disruption, and ensures resources are used effectively.

  Option A may lead to unnecessary duplication rather than coordination. Option C contradicts IIA guidance, which emphasizes coordination (Standard 2050). Option D excludes areas entirely, which is inappropriate because internal audit must

  still assess whether reliance is valid.

  IIA Standards - Standard 2050: Coordination and Reliance.