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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 181:

  Which of the following statements is true regarding an organization's servers?

  A. Servers optimize data processing by sharing it with other computers on the information system
  B. Servers manage the interconnectivity of system hardware devices in the information system.
  C. Servers manage the data stored in databases residing on the information system.
  D. Servers enforce access controls between networks transmitting data on the information system
  B. Servers manage the interconnectivity of system hardware devices in the information system.

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  Explanation

• Question 182:

  If the demand for a product is inelastic,

  A. A price decrease causes total revenue to increase.
  B. A price increase causes total revenue to increase.
  C. A price decrease leaves total revenue unchanged.
  D. A price increase leaves total revenue unchanged.
  B. A price increase causes total revenue to increase.

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  Explanation

  If the demand for a product is inelastic, the coefficient of price elasticity of demand (percentage change in quantity demanded - percentage change in price) is less than 1.0. The relationship between price changes and total revenue (TR) changes is TR = price x quantity. The result is that a price increase causes total revenue to increase.

• Question 183:

  In light of increasing emission taxes in the European Union, a car manufacturer introduced a new middle-class hybrid vehicle specifically for the European market only. Which of the following competitive strategies has the manufacturer used?

  A. Reactive strategy
  B. Cost leadership strategy
  C. Differentiation strategy
  D. Focus strategy
  D. Focus strategy

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  Explanation

• Question 184:

  When auditing an application change control process, which of the following procedures should be included in the scope of the audit?

  1. Ensure system change requests are formally initiated, documented, and approved.

  2. Ensure processes are in place to prevent emergency changes from taking place.

  3. Ensure changes are adequately tested before being placed into the production environment.

  4. Evaluate whether the procedures for program change management are adequate.

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

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  Explanation

• Question 185:

  Prior announcements of moves have value as market signals in part because an announced move need not actually occur. Which of the following is true regarding the effects of prior announcements of moves on the market?

  A. The effects may preempt competition II. The effects may express pleasure or displeasure with a competitor's action III. The effects may be a means of ending all external debate IV. The effects may test competitor sentiment
  B. I, II, and Ill only.
  C. I, II, and IV only.
  D. II, Ill, and IV only.
  E. I, II, Ill, and IV.
  B. I, II, and Ill only.

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  Explanation

  Among other things, prior announcements of moves may preempt competition, threaten action, test competitor sentiment, express pleasure or displeasure with a competitor's action, and act as a means of ending internal debate. Moreover, prior announcements of moves may be a means of ending some external debate (i.e., if the announcement was aimed at the financial community in order to answer questions about the firm's liquidity). However, all external debate would be impossible to end, even by means of prior announcements of moves.

• Question 186:

  Which of the following actions can management take to build trust with groups?

  A. Disclose information, emotions, and opinions.
  B. Engaging in timely and accurate communication.
  C. Showing respect to the group.
  D. All of the answers are correct.
  D. All of the answers are correct.

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  Explanation

  The three factors that show that management desires to build a trusting relationship between the group and management.

• Question 187:

  In some regions of the world, business is conducted more often through personal relationship building than through legal contracts. This is an example of a

  A. Cultural factor.
  B. Commercial factor.
  C. Technical factor.
  D. Legal factor.
  A. Cultural factor.

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  Explanation

  In high-context cultures (e.g., Japanese, Chinese, Arabic, and Korean), much meaning is transmitted by nonverbal cues and situational circumstances. Thus, a person's status in a firm, rank in society, and reputation convey the primary message. In low-context cultures (e.g., Northern Europe and North America), primary messages are transmitted verbally. Hence, precise written contractual agreements are highly valued. In contrast, social events aremore highlyvalued in a high-context culture. Attitudes, tastes, behavior, and social codes are culturalfactors. Accordingly, a preference for personal relationships rather than precise writtencontracts is a cultural factor.

• Question 188:

  Motivation is:

  A. The extent to which goal-specific performance is recognized by supervisors.
  B. The extent to which individuals have the authority to make decisions.
  C. The extent of the attempt to accomplish a specific goal.
  D. The desire and the commitment to achieve a specific goal.
  D. The desire and the commitment to achieve a specific goal.

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  Explanation

  Motivation is the desire to attain a specific goal goal congruence) and the commitment to accomplish the goal managerial effort). Managerial motivation is therefore a combination of managerial effort and goal congruence.

• Question 189:

  An organization contracted a third-party service provider to plan, design, and build a new facility. Senior management would like to transfer all of the risk to the builder. Which type of procurement contract would the organization use?

  A. Cost-plus contract
  B. Turnkey contract
  C. Service contract
  D. Solutions contract
  B. Turnkey contract

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  Explanation

• Question 190:

  Which of the following application controls checks the integrity of data entered into a business application?

  A. Input controls.
  B. Output controls
  C. Processing controls
  D. Integrity controls
  A. Input controls.

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  Explanation