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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 341:

  According to keegan's model of adaptation strategies, a firm that decides to operate globally by changing its product and its promotion methods has chosen

  A. A dual adaptation strategy.
  B. The backward variant of a product invention strategy.
  C. The forward variant of a product invention strategy.
  D. A straight extension strategy.
  A. A dual adaptation strategy.

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  Explanation

  Communication adaptation is a strategy that does not change the products, but advertising and marketing campaigns are changed to reflect the local culture and beliefs. In contrast, a dual adaptation strategy changes both the product and the promotion to provide the best chance of acceptance in a foreign market.

• Question 342:

  Which of the following statements is true regarding the use of centralized authority to govern an organization?

  A. Fraud committed through collusion is more likely when authority is centralized.
  B. Centralized managerial authority typically enhances certainty and consistency within an organization.
  C. When authority is centralized, the alignment of activities to achieve business goals typically is decreased.
  D. Using separation of duties to mitigate collusion is reduced only when authority is centralized.
  B. Centralized managerial authority typically enhances certainty and consistency within an organization.

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  Explanation

  Centralized authority refers to decision-making being concentrated at the top levels of an organization, ensuring uniform policies and procedures across departments.

  Let's analyze each option:

  Option A: Fraud committed through collusion is more likely when authority is centralized.

  Incorrect. Centralized authority reduces the chances of fraud by enforcing strict oversight and controls. Decentralized structures may create more opportunities for fraud due to inconsistent policies.

  Option B: Centralized managerial authority typically enhances certainty and consistency within an organization. # (Correct Answer)

  Correct. Centralized authority ensures consistent decision-making, standardized processes, and clear policies , reducing uncertainty.

  For example, in a multinational company, a centralized governance structure ensures compliance with financial reporting standards across all subsidiaries.

  Option C: When authority is centralized, the alignment of activities to achieve business goals typically is decreased.

  Incorrect. Centralized authority actually helps in aligning business activities toward strategic goals by ensuring uniform direction and coordination.

  Option D:. Using separation of duties to mitigate collusion is reduced only when authority is centralized.

  Incorrect. Separation of duties (SoD) is a key internal control mechanism that exists regardless of centralization. Organizations implement SoD through policies, not just governance structures.

  IIA Standard 2110 - Governance - Emphasizes the importance of clear governance structures in organizations.

  COSO Internal Control - Integrated Framework - Discusses centralization and its impact on risk management and control effectiveness.

  IIA Global Technology Audit Guide (GTAG) - Enterprise Risk Management (ERM) - Highlights the role of centralized authority in aligning corporate strategies.

  ISO 37000:2021 - Governance of Organizations - Outlines how centralized governance improves organizational consistency and decision-making.

• Question 343:

  One of the keys to successful redesigning of jobs in order to motivate employees is:

  A. Creating autonomous work teams.
  B. Enlarging jobs by adding more tasks similar to tasks being performed.
  C. Rotating workers to different jobs to provide the workers with variety.
  D. Changing the content of jobs so that the jobs fit each worker's need for growth.
  D. Changing the content of jobs so that the jobs fit each worker's need for growth.

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  Explanation

  One of the major principles of successful job design and redesign is to consider employee needs and skills and match them with jobs. An alternative is to change the jobs to fit those needs and skills. The objective is to conform to strengths and to avoid weaknesses.

• Question 344:

  When initiating international ventures, an organization should consider cultural dimensions in order to prevent misunderstandings. Which of the following does not represent a recognized cultural dimension in a work environment?

  A. Self control.
  B. Power distance.
  C. Masculinity versus femininity.
  D. Uncertainty avoidance.
  A. Self control.

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  Explanation

• Question 345:

  Which of the following would increase understanding of a complex and ambiguous situation confronted by an organization?

  A. Brainstorming. II. Polling. III. Lateral thinking.
  B. I only.
  C. I and Ill only.
  D. II and Ill only.
  E. I, II, and Ill.
  B. I only.

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  Explanation

  Brainstorming is a method of group decision making thatnonjudgmentalrecords all ideas offered. By encouraging groups to identify novel or unusual contributions, brainstorming helps make all of the elements of a problem and its resolution visible. Lateral thinking explores different ways of viewing an issue. Taking alternative perspectives increases the likelihood of finding better solutions. However, by identifying views without further analysis, polling does not increase understanding of a complex situation.

• Question 346:

  Michael E. Porter's generic strategies are responses to the five competitive forces. How do focus strategies respond to the threat of buyers' bargaining power?

  A. A cost leader may be able to pass along suppliers' price increases.
  B. Substitute products may not be able to compete on quality.
  C. Core competencies in a broad market may not be matched by new entrants.
  D. Brand loyalty may not be matched by new entrants.
  B. Substitute products may not be able to compete on quality.

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  Explanation

  Differentiation may reduce the leverage enjoyed by strong buyers because of the uniqueness of the product and the resulting lack of close substitutes. Focus strategies also may reduce buyers' ability to negotiate in a narrow market. Substitutes may not be able to compete on price, quality, etc.

• Question 347:

  Which of the following is a characteristic of big data?

  A. Big data is often structured.
  B. Big data analytic results often need to be visualized.
  C. Big data is often generated slowly and is highly variable.
  D. Big data comes from internal sources kept in data warehouses.
  C. Big data is often generated slowly and is highly variable.

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  Explanation

• Question 348:

  An internal auditor was assigned to test for ghost employees using data analytics. The auditor extracted employee data from human resources and payroll. Using spreadsheet functions, the auditor matched data sets by name and assumed that employees who were not present in each data set should be investigated further. However, the results seemed erroneous, as very few employees matched across all data sets. Which of the following data analytics steps has the auditor most likely omitted?

  A. Data analysis
  B. Data diagnostics
  C. Data velocity
  D. Data normalization
  B. Data diagnostics

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  Explanation

• Question 349:

  The competitive factor that may lead to industry overcapacity is

  A. A favorable interest rate charged by suppliers of capital.
  B. A short lead time for capacity expansion.
  C. The existence of first mover advantages.
  D. Integration of competitors.
  C. The existence of first mover advantages.

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  Explanation

  First mover advantages may be significant. Thus, short lead times for ordering equipment, lower costs, and the ability to exploit an excess of demand over supply may encourage too many firms to expand.

• Question 350:

  Which of the following corporate social responsibility strategies is likely to be most effective in minimizing confrontations with influential activists and lobbyists?

  A. Continually evaluate the needs and opinions of all stakeholder groups.
  B. Ensure strict compliance with applicable laws and regulations to avoid incidents.
  C. Maintain a comprehensive publicity campaign that highlights the organization's efforts.
  D. Increase goodwill through philanthropic activities among stakeholder communities.
  A. Continually evaluate the needs and opinions of all stakeholder groups.

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  Explanation