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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 331:

  Which of the following serves as a safeguard to protect the confidentiality of information being transmitted from an internal network to an external network?

  A. A cloud network.
  B. A mobile network.
  C. An intranet.
  D. A virtual private network.
  D. A virtual private network.

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  Explanation

• Question 332:

  Preferred stock is less risky for investors than is common stock because:

  A. Common stock pays dividends as a stated percentage of face value.
  B. Common stock has priority over preferred stock with regard to earnings and assets.
  C. Preferred dividends are usually cumulative
  D. Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.
  C. Preferred dividends are usually cumulative

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  Explanation

• Question 333:

  Which of the following is an advantage of a decentralized organizational structure, as opposed to a centralized structure?

  A. Greater cost-effectiveness,
  B. Increased economies of scale.
  C. Larger talent pool.
  D. Strong internal controls.
  A. Greater cost-effectiveness,

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  Explanation

  https://www.economicsdiscussion.net/management/advantages-and-disadvantages-of-decentralization/31848

• Question 334:

  Which of the following is key to any plan to empower teams?

  A. Give structure to team members.
  B. Monitor progress and offer timely feedback on performance.
  C. Reduce authority of the team when mistakes are made.
  D. Avoid tension and conflict within the team.
  B. Monitor progress and offer timely feedback on performance.

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  Explanation

  Members of a team are empowered when they are properly trained and equipped, have the relevant information they need, are fully involved in decision making, and receive fair compensation for their work. Monitoring and feedback are keys to maintaining empowerment because they are necessary to team effectiveness. Team effectiveness is reflected in achievement of objectives, innovation, adaptability, commitment, and favorable evaluations by senior management.

• Question 335:

  Which of the following statements about mentoring is true?

  1) Mentoring can be used effectively for increasing employee retention

  2) Mentoring can be used effectively in reducing employees frustration.

  3) Mentoring can be used effectively for increasing organization communication.

  4) Mentoring can be used effectively as a short term activity consisting of instruction and training

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

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  Explanation

• Question 336:

  Which of the following actions is likely to reduce the risk of violating transfer pricing regulations?

  A. The organization sells inventory to an overseas subsidiary at fair value
  B. The local subsidiary purchases inventory at a discounted price
  C. The organization sells inventory to an overseas subsidiary at the original cost
  D. The local subsidiary purchases inventory at the depreciated cost
  A. The organization sells inventory to an overseas subsidiary at fair value

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  Explanation

• Question 337:

  Which of the following is a likely result of outsourcing?

  A. Increased dependence on suppliers.
  B. Increased importance of market strategy.
  C. Decreased sensitivity to government regulation.
  D. Decreased focus on costs.
  D. Decreased focus on costs.

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  Explanation

• Question 338:

  In which one of the following statements is the use of accounting jargon an impediment to communication between accountants and non-accounting professionals?

  A. "Labor standards tell how much time workers should take to assemble a computer."
  B. The assigned auditor trying to decide whether the million dollar disbursement should be expensed or capitalized."
  C. "In carrying out variance analysis, the assigned auditor is seeking the possible reasons why the net income shown in the financial statements for the year 1996 is 20% less than expected."
  D. "An accounting department in a factory is classified as a service because the accounting department allows the departments actually involved in the making of products freedom from bookkeeping chores."
  B. The assigned auditor trying to decide whether the million dollar disbursement should be expensed or capitalized."

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  Explanation

  The use of jargon leads to communication problems when a specialist tries to send a message to a non-specialist. The use of the phrase "expensed or capitalized" is a use of jargon in that a non-accountant might not understand the technical meaning of the terms. Thus, the recipient of the message may not be able to provide a clear answer.

• Question 339:

  Which type of organization is based upon strategic long-term relationships based upon implicit contracts and coordination through adaptation?

  A. Hourglass organization.
  B. Cluster organization.
  C. Network organization.
  D. Virtual organization.
  C. Network organization.

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  Explanation

  A network organization is a network based upon coordination through adaptation. It also is based upon long-term relationships without specific legal ties.

• Question 340:

  In a final audit report, internal auditors drafted the following management action plan with a due date of the last day of the calendar year:

  "Plan: A bank reconciliation template has been updated to address issues with formulas incorrectly calculating variances."

  Which critical element of the action plan is missing?

  A. The responsible personnel
  B. The status of the action plan
  C. A referral to the policy or procedure
  D. The level of risk
  A. The responsible personnel

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  Explanation

  A management action plan should include: (1) corrective action, (2) responsible personnel, and (3) implementation timeline. In this case, while the corrective action and due date are included, the responsible personnel is missing, which is

  critical for accountability.

  Option B (status) is tracked later during follow-up. Option C (policy reference) is not mandatory. Option D (risk level) belongs to the observation, not the action plan.

  IIA Practice Guide - Audit Findings and Recommendations.